MOWING: Fleet Figures

Every lawn maintenance company is different. Some service residential properties, while others tend exclusively to commercial. Some operate with two crews of three guys, while others have 20 crews of seven guys. Regardless of client base or composition, they all have one thing in common – mowers get the work done.
 
The type and quantity of mowers to purchase are considerations contractors face to determine the right fleet size for their businesses. These are also issues contractors should  pay attention to as their businesses grow or shrink. “If equipment is not being used, get rid of it,” says Jim Huston, president of consulting firm J.R. Huston Enterprises, Denver. “Equipment can make you a lot of money, but you’re not married to it. You have to make sure you’re turning it over and keeping it in good shape to really benefit from it.”
  
Avoiding idle equipment and maintaining quality machines are two things contractors can do to ensure they’re getting the most for their mower money. By doing their homework, and with a little help from manufacturers and dealers, contractors can keep their fleets productive and in top-rate condition. “There are a number of factors that help determine the right size mower fleet and, quite frankly, there is not a perfect formula,” says Tim Cromley, marketing manager, Walker Manufacturing Co., Fort Collins, Colo. “Each fleet needs to be customized to best suit a contractor’s needs.”

DEALER DECISIONS. The chosen manufacturer is important when purchasing a mower for various reasons, Huston says. First, contractors should purchase their mowers from a company in close proximity so they can easily have it serviced when problems arise. “With a lot of my clients, this is their primary concern,” he says. “Contractors can buy a great mower, but if there is no support for it, it can be a detriment.”
  
Some contractors like to choose one manufacturer for all of their mowing needs. Mark Smith, president of Environmental Design Landscape, Charlotte, N.C., initially purchased mowers from three different manufacturers to find out which he preferred. Some factors Smith considered were user friendliness, productivity and serviceability. “We put them head-to-head and settled with one and now that’s all we use,” he says.
 
Douglas Zepp chooses his mowers from the same manufacturer because the parts are interchangeable, but he branches out to different companies when shopping for other equipment. “Once I find something good, I stick with it, no matter what brand it is,” says the owner of Douglas Lawn & Landscape, Westminster, Md.
 
Contractors should do their homework before choosing a manufacturer because they’re not just buying a mower, they’re buying service that should last for years. “Customers need to understand when they buy a certain brand they are buying into that dealership,” Cromley says. “They are buying into their parts supply, customer service and all of their professional capabilities.”
 
Contractors shouldn’t hesitate to ask to see the dealer’s parts supply and product inventory, and also ask specific questions like whether or not the dealership has a loner program to avoid lost productivity when machines are down. “This will give the customer some information about whether this dealer will be around when you need him,” Cromley says. 
 
Edric Funk, marketing manager for Toro, Bloomington, Minn., says contractors should purchase their mowers from a dealership that takes used equipment. Many contractors find trading in their mowers on a consistent basis is the best way to get the most out of each machine.
 
When to trade in a mower depends on the type, Huston says, but a good rule of thumb is to trade in a mower once it’s reached 75 percent of its useful life in hours. The useful life of a gas engine mower is usually about 100 hours per horsepower. A mower with 14 to 16 horsepower technically can get 1,400 to 1,600 hours before it’s time for an overhaul. Contractors should consider trading it in at about 1,200 hours to avoid major repairs and to receive maximum resale value, Huston says.
 
Riding mowers usually have 25 to 27 horsepower engines and can get about 125 hours per horsepower, or about 3,250 hours, before it’s time for an overhaul. Following Huston’s logic, contractors should think about trading it in at about 2,400 hours. “Typically mowers will last three seasons,” Huston says. “At that time you want to think about trading it in.”
 
Smith makes sure not to hold on to his mowers for too long, a mistake he admits making in the past. He finds a two- to three-year window works best for his company, and aims for a 50 percent resale value – about $7,000 to $8,000.
 
Zepp also trades in his mowers after two or three years and usually receives a similar trade-in value. But he realizes he has to take care of his mowers to make them desirable trade-ins. This involves everyday tasks like washing the machine, greasing the joints, sharpening the blades and refueling. “We take care of them because, if you do, the resale value is there when you’re done with them,” he says. “Some people believe in running their machines into the ground, but then you’re buried in a piece of junk mower that you can’t trade in.”
 
Huston suggests contractors budget to spend between 3 and 6 percent of their yearly total sales to keep their mowers in good working condition. This cost includes anything related to maintaining and purchasing a mower, including depreciation value, fuel and repairs. Of course, this cost can vary depending on the size of the company. Smaller companies (less than $1 million) should expect to spend closer to 3 percent, while larger companies should expect to spend 6 percent or more, Huston adds.
 
Monitor financial statements to track how much is spent  on mower repairs, Huston suggests. “It can be difficult to break it down this way,” he says. “But if a contractor notices he’s spending more than 1 or 2 percent of sales on mower repairs, it’s time to take a good, hard look at that machine and think about getting rid of it.”

EXPANDING THE FLEET. Most contractors determine when to increase the number of mowers in their fleets on as as-needed basis. Zepp’s company started out as a “two-man show,” and now operates with 16 employees. “As business grew, I would add a new mower when we weren’t getting all of our work done in time and we had enough work to keep the new mower busy,” Zepp says. Another way Zepp knew when it was time to add a mower was when his spare was being used on a daily basis. These days he usually has about 10 mowers on-hand – six riding and one walk-behind that run everyday and at least one or two spares of each mower type.
 
Smith also adds to his mower fleet as needed, currently operating with 100 employees and 45 or 50 mowers, 70 percent of which are riding mowers and the rest walk-behind. “The amount of mowers we have is based on the number and types of contracts,” he says. “We didn’t buy them all at one time; we just need to have the equipment to suit our needs.”
 
Needs are largely determined based on the types of jobs a company most often performs. “There are extremes when it comes to site conditions,” Huston says. “If a contractor has a lot of jobs in park settings where there are trees everywhere, they need a mower that is versatile and maneuverable. Contractors who mow athletic fields need a mower that is fast and powerful with a wide deck.”
 
Contactors can make bad purchasing decisions if they follow word-of-mouth advice strictly. “One of the biggest mistakes contractors make is buying a mower just because someone they know used it, especially if your business differs from theirs,” Cromley says. “Word-of-mouth is great, but each company needs to research what is best for them.”
    
Bigger and faster is not always better when it comes to purchasing a mower to produce a great-looking cut. Many of today’s commercial riding mowers can reach double-digit speeds, which appeal to contractors who want to get the most work done in the least amount of time. This is a common misconception, Cromley says. “The fact that a mower goes at double-digit miles per hour does not always account for a nicely finished mowing job,” he says, adding the neatest cut is usually achieved at around 3 or 4 miles per hour.  

CONTRACTOR COMBO. While the bulk of the decision making is left to the contractor, most agree purchasing a mower is a joint effort between contractors and dealers. “Once a contractor has made the decision about what his fleet will look like, most dealers are very capable of directing him toward the right machine,” Funk says.
 
Because of this, contractors should form a relationship with a commercial equipment dealer, which pays off in the long run. Zepp always works with the same dealer, because not only does the dealer ensure he makes smart purchases, but he also knows Zepp’s trade-ins will be valuable machines.
 
“An honest dealer will take the time to get to know a contractor’s needs and direct him to a piece of equipment that is beneficial for his business,” Cromley says.
 
While most contractors today go to a dealership with some kind of plan for the type of fleet they need, it’s not always the best laid plan. For example, some contractors rely more on word-of-mouth advice than on their own knowledge and experience, as Cromley mentioned.
 
Many clients let their budget, rather than their business’s needs, determine which mower they purchase, Funk says. “It’s understandable that contractors only have so much money to work with,” he says. “But some don’t look at the return on investment and realize they could actually make more money if they put a little extra money into a more productive mower.” 
 
Some contractors don’t do their homework as often or as thoroughly as they should, Huston says. This can result in costly, unnecessary mistakes. “I recently met with a client who changed his snowplow operations by switching to a 14-inch pusher,” he says. “That one change in equipment saved him $25,000 is expenses last year.” 
 
Huston’s best clients study equipment and its uses prior to making any final purchases. They are also proactive in talking with people within the industry at trade shows and association meetings and, perhaps most importantly, they aren’t afraid to ask questions, he says.
 
One of the best ways landscape contractors can determine the appropriate mower fleet is by talking with other contractors and observing the setup of their businesses, Funk say. And when doing so, it’s important to onsider size and location in that evaluation, he adds.
 
“Each contractor needs to look at his personal situation because there is no magic formula to decide what to do when it comes to mower fleets,” he says. “But although each situation is unique, there are none so grossly different that a contractor couldn’t find a similar company to use as a model.”