10 commandments of equipment purchasing

Is the front-end loader frozen? Maybe it’s time to drop the shovels and look at a tree spade. Buying nursery equipment shouldn’t be a knee-jerk reaction. These commandments may not be set in stone, but they’re worth mulling over before you make your next big purchase.

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1. Thou shalt not max out your personal credit card for a new tractor.

You may have done this as a greenhorn, but you wouldn’t dream of doing this now, right? Right? Budgeting for equipment is crucial to the bottom line.

Research lease/purchase options. The cheapest deal isn’t always the best, said George Koziarz, American Nursery & Landscape Association consultant. The decision to buy or lease equipment is usually an analysis of your company’s cost of capital, cash flow and the time value of money, he said.

Seeking competitive bids may also keep your costs down, said Darrell Downey, chief executive officer of Engineered Watering Solutions in Atlanta.

“And don’t forget to ask for extras and added-ins to be included at no charge,” Downey said.

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2. Thou shalt weigh the pros and cons between new and used equipment.

It’s shiny. It’s got that new tractor smell. It has a CD player and an ergonomically correct seat.

You have a fever and the only cure is a trip to the showroom floor. Take an aspirin and consult your accountant in the morning. Do the benefits of the new model outweigh the cost difference for the used model? Think about it and physically write down the pros and cons of new versus used equipment.

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3. Thou shalt not buy tractor implements from a dimly lit warehouse at the end of a pier.

Heavy/construction equipment theft is a $1 billion problem, according to the National Insurance Crime Bureau. Don’t risk buying hot equipment because the price is too good to pass up.

To keep your own equipment from ending up in the crime syndicate, weld your phone number or an owner-applied number on your machinery.

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4. Thou shalt read, and perhaps re-read, the operation manual.

Be familiar with the equipment, preferably before operation, said Bridget Behe, Michigan State University horticulture professor.

“They won’t make it into a movie, so it’s a good idea to be familiar with the novel,” Behe said. “It also won’t appear as a book on tape, but perhaps it should with voice activation for ‘searching’ topics.”

Mark sections you know you’ll need often and keep manuals handy. Who’s going to refer to the manual if it’s hidden with boxes of 1970s tax returns? If something in the manual doesn’t make sense, ask the manufacturer or dealer.

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5. Thou shalt promise to understand the meaning of warranty.

A lot of growers buy equipment and modify it. There are many clever shop foremen in the nursery industry that add and take away from machinery to improve it.

However, most warranties are void once a piece of machinery has been altered. Talk to the manufacturers. Tell them what you need. Can they build something to your specifications?

“With the exception of some tractors, I don’t think we’ve ever bought a piece of new equipment that we didn’t have to tear apart and rework it so it works effectively,” said Denny Blew, president of Centerton Nursery in Bridgeton, N.J.

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6. Thou shalt conduct training sessions on the equipment operation.

Someone on staff with experience using a machine should be in charge of training the rest of the crew. Trial by fire is no way to learn how to use a new piece of equipment.

Can you say worker’s comp? How about costly repairs?

The manufacturer or dealer may offer a service that trains equipment operators. Ruppert Nurseries in Laytonsville, Md., has an orientation and mentoring period for any equipment use at the nursery. Refresher courses throughout the year are also helpful.

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7. Thou shalt begin and continue a maintenance schedule for each piece of newly purchased equipment.

Don’t view maintenance as a hassle or time waster. Build maintenance into the production schedule just as you would fertilizing or passing out paychecks.

If you don’t properly maintain the equipment, you’ll likely void any warranty. (Also see commandment No. 5.) And keep good maintenance records.

“Record maintenance in a place where you can access it,” Behe said.

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8. Thou shalt ask peers for advice before purchasing new equipment.

You may ask your golf buddy or your child’s coach about that new Dodge extended cab. Use the same reasoning when buying nursery equipment.

Your peers will give it to you straight:

“It works great except in the mud.”

“I should have used the money for two years of my daughter’s tuition.”

Take advantage of grower associations. The Wholesale Nursery Growers Association Kick the Dirt Tour gives growers a window into other nurseries’ operations. This year the event is Sept. 25-27 in Chicago. For details, go to www.anla.org.

Many trade shows offer equipment demonstrations as well.

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9. Thou shalt ask employees for a wish list and consider their needs before purchasing a piece of equipment.

Whether it’s a backhoe or a blender, ask the folks who use the equipment what they need and what they’d like.

“My advice is, no matter what you buy, involve everyone that is going to use it in the decision making process,” said Amil Kleinert, president of T-Mate-O in Charlestown, Ind. “I spent most of my years in farming buying machinery and hoping I made the right decision. Most of the time it works out great, but then sometimes it is like last week: My wife hated the new $1,500 mattress we had just gotten a year earlier, so I gave it away and brought a new one.

“This one is even worse, so we are going to look for another, but this time we both need to be involved.”

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10. Thou shalt not have equipment envy and purchase the latest-and-greatest product to upstage your neighbor.

Who cares if the nursery down the street got the newest tractor model? It also has a skid-steer with every attachment known to horticulture.

Instead, you saved some dough by not giving in to the hype and reinvested it into the company. Guess what? You finally can afford that trip to the Poconos.

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For more: George Koziarz, George Koziarz & Associates, (847) 641-1213; gkainc@ix.netcom.com. Darrell Downey, Engineered Watering Solutions, (770) 924-4191; www.engineeredwatering.com. Bridget Behe, Michigan State University, (517) 355-5191 ext. 1346; behe@msu.edu. Denny Blew, Centerton Nursery, (800) 533-1132; www.centertonnursery.com. Kelly Lewis, Ruppert Nurseries, (310) 482-0300; www.ruppertnurseries.com. Amil Kleinert, T-Mate-O, (877) 854-5497; www.treesupports.com.

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- Kelli Rodda