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Landscape and Turf Maintenance By Jessica Simpson The Fleet Management Solution A ll landscape contractors need to understand the basics of fleet management. Keeping a fleet in top condition during peak months requires daily servic- ing, parts maintenance, refueling and, per- haps most important, time. But beyond these fundamental criteria, a bigger ques- tion looms after equipment has run its course on the fleet team: what is the best way to get rid of old equipment? There are several possible actions a contractor can take, but participating in a fleet manage- ment program is the only choice that solves all aspects of fleet management. Problems with old equipment According to Bill Engler, director of sales for Gravely, one of the pains in the industry for landscape contractors is deal- ing with the old equipment. "Landscapers typically choose from a number of options to dispose of older equipment," said En- gler. "They either sell it to employees or friends of the company, post the equip- ment on sites such as eBay or Craigslist, or simply put a "for sale" sign on it and sell it to anyone who drives by and inquires about it." Contractors who take the route of sell- ing it themselves run a few risks, which can lead to headaches. If a friend buys a 24 Landscape and Irrigation March 2012 mower and then it breaks down, they might expect the contractor to repair it. And selling it to someone who walks in and asks requires time and haggling. Addi- tionally, if landscapers choose to sell on- line, they have to take photos, negotiate pricing and continually follow-up throughout the process. Another option landscape contractors have is to work directly with their servic- ing dealer on trade-ins or on a consign- ment basis, yet often dealers aren't willing to pay the price a contractor asks for the piece of equipment. All of a sudden, selling a piece of used equipment becomes a bur- densome process stealing valuable time and resources from contractors who simply want to maximize their equipment's value. These extra expenses are often not re- couped by their company. Although the equipment is outdated and has run its course in a contractor's fleet, it doesn't mean the equipment is nonfunctioning or worthless. "Typically, if contractors properly maintain their equip- ment, it will deliver the highest residual value during resale," said Engler. "Unfortu- nately, there is no sure way to guarantee when the greatest residual value will be — only the market demand at that point in time will be the determining factor. A good rule of thumb is that a unit between two and three years old with approxi- mately 1,500 hours or less of use seems to bring the highest residual value in the used market." When it's time to sell their used equip- ment, contractors who don't participate in a fleet program tend to make mistakes when trying to gauge when it's the right time. If they wait too long, they often be- come embroiled in a costly battle of re- pairing the declining equipment. Tony Lapidus, a Gravely commercial products sales specialist, works with some of the largest landscape contractors in the Midwest. Lapidus witnesses firsthand the mistakes contractors make in monitoring their fleets. "Many contractors lose track of when certain machines were serviced, or they forget during their busy season and neglect the machines," said Lapidus. "Gravely's fleet program monitors their fleet for them, so they're better able to serve their customers with high- performing equipment." A company can become inundated with failing parts as key components begin to wear and become unreliable. When one of these parts goes bad, the only option is to bite the bullet and repair it — often at a high price. In this scenario, the landscape contractor is hurting from many angles: they're financially burdened with fixing www.landscapeirrigation.com All photos provided by Gravely