Smart.Growth. | Open House Event @ Earthscape | August 15, 2024
Optimizing Your Landscape Business with Proper Planning
What are the Benefits of Investing in a Tri-Axle Truck?
In this video, we talk about our Kenworth T800, and how we have leveraged it to scale our landscape business.
For landscaping businesses, the strategic use of large trucks isn’t just about transportation—it’s about maximizing every job’s profitability and efficiency. This guide explores how leveraging these powerful vehicles can streamline your operations, reduce costs, and accelerate your growth, ensuring that every mile driven is a step towards greater success.
Understanding the Economics of Large Trucks
Revenue from Back-Hauling
The true money-making potential of large trucks such as our Kenworth T800 comes not from the outbound journey, but from back-hauling. Utilizing the truck for return deliveries means essentially providing a service at no additional cost. For instance, making 3-4 deliveries a day at approximately $200 each can add a substantial $800 daily to your bottom line.
Cost-Effectiveness through Optimal Use:
To avoid losses, it’s crucial to run the truck at full capacity. Idle trucks are a liability. Targeting an operational sweet spot of 1,800 to 2,000 hours annually can ensure the truck isn’t just covering costs, but actively contributing to profits.
Pricing and Investment
The initial cost of a well-equipped large truck can be steep—around $500,000 in Canada and approximately $330,000 to $340,000 in the U.S. However, the return on this investment can be highly favorable due to the truck’s contribution to operational efficiency and revenue.
Efficiency and Vertical Integration
In-House Operations
Managing logistics internally allows for greater control over the delivery process, minimizing delays and reducing dependency on external services. This integration not only saves time but also keeps more of the profit within the business.
Investing for the Long-Term
Durability and Resale Value
A quality truck can have a useful life of 10-12 years, with the possibility of reselling it for about 50% of its original value, inflation-adjusted. This long-term perspective makes it not just a purchase but a strategic asset.
Scaling Your Business
Investing in substantial equipment like large trucks signals a shift from small-time operations to a more serious, scalable business model. It positions a business to handle increased demand and accelerates growth, illustrating the principle that the right tools can transform an operation.
Choosing the Right Equipment
Opt for trusted brands and proven equipment. For example, trucks from reputable manufacturers like Kenworth are known for their reliability and efficiency. The additional upfront cost of premium features, such as Cummins engines and Allison transmissions, is justified by the high demand and ease of sale when it’s time to upgrade.
