Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

The Cost of Owning Equipment 🤌

9 Feb 2025 · 1 min

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0:35

Mike Andes explains that buying more equipment (and trucks) involves more than loan payments: it adds recurring hidden costs such as insurance increases (potentially doubling or tripling premiums), storage rental ("an extra couple hundred dollars a month" even if equipment is used rarely), and maintenance/repair (e.g., diesel engine breakdowns requiring mechanics). He warns these added fixed costs can strain cash flow during the off season when revenue falls, potentially causing the business to lose money.

Chapters

Now, the thing about buying more equipment and more trucks is it's not just the payments. It's also the fact you have to insure that equipment. You have to store that equipment. You have to maintain that equipment. So that diesel engine, if it breaks down, you're getting a mechanic to come fix it. You have to get a bigger storage space and more shop space just to house that equipment, even though you're only using it once a month. You're paying an extra couple hundred dollars a month in just space that you're renting. Also, insurance. If you're adding a massive tree chipper or a boom, you could be doubling or tripling your insurance premium. Having those payments rushes you during the off season because your revenue dips, and all of a sudden you're paying out so much in payments every month, you actually lose money during the off season.