For a description as to what exactly is a shredder please refer to the following. http://hayandforage.com/equipment/making-corn-silage-better-1103%20
Is your rake raking dirt? Why are you raking at all? Here's the key!
Hard to believe how much astray the web site went!
Although yes indeed we will assist others in creating a Chopper Partnership, our principle business is MOWING HAY!
We think the day will come when 60-80% of the hay mowed in this country will be mowed with a tripple mower! It just makes sence, we can mow twice the hay with a tripple mower vs that of some of the biggest self-propelled's!
Our current line of thinking is that we will have a minimum of 5 partners owning an LLC, 3 of which own a tractor, twin trailers, mowers, rakes and service vehicles, the remaining 2+ being the chopper operator, PleasantCreekHay.com and up to 2 additional entities awaiting a third for an a restructuring (and route).
Scrap using a single trailer in favor of using 40' doubles, 80' total Observe
The trailers dump coming near the end!
Depending on demand for services, it is generally believed additional choppers and routes (territory covered) will lead to more efficient use of time when vested entities in multiples of 3 are seperate entities (LLC's). Everyone knowing what their investments are, new LLC's can be formulated annually, with chopper operators transferring their investments to the new LLC's as well!
Budget Purchase Offer
1) Our Chopper! Several V-12's are on the market in the US at the moment for under $200,000! This one happens to be Founders choice!
This is your partnership! I work for you. These units can be dropped from the purchase order and others added at any time right up until the day of commitment! Once we have 3-5 partners committed through escrow, we can fine tune the purchase order through your recommendations, be closer to a commitment date and continue to MAKE SOME MONEY
This is a partial update representing a shift to using the NEW Claas Shredder. We need to re-work the numbers. Prior to this we needed a bit of a tweek as well as we didn't take into a redesugning of 40' Gravel Trailers into 53' silage trailers.
In case we are unable to purchase this unit, let's ad $10,000 to our budget
Budget Chopper $325,000 This Unit $315,000
2) Our JCB's suggested to our Mega Partnership and their lenders!
3 JCB's in the rotation are all that are needed at 65K-42MPH when the machines are fifth wheeled to allow them to ballast the weight of 50% of the 52' trailer.
My more recent thoughts are that we purchase the most economical 3185/65's and if we find tire in the field or speed on the highway inadequate, we replace the 30" rims with factory 34"s, this will add tyre in the field and speed on the highway.
Our current thinking is that each of you (three partners owning tractors) will receive $.60/$1,000 invested in your respective tractors, trailers and mowers and PleasantCreekHay.com will be responsible for redundancy if we should have a machine break down!
We'll KISS it!
PleasantCreekHay.com, will either do it or appoint one of the partners as responsible for redundancy, it being less expensive than requiring everyone be resposible for each of their respective units redundancy!
One of you has to decide that you are going to be back up in case we have a major break down OR the partnership can own a unit on the sideline! (In use but available) If one of the participants is a PleasantCreekHay.com LLC making hay, they may have adequate redundancy within to serve both of their LLC's!
Below we have included the current 80K - 50 MPH machines as perspective purchases, but if unavailable, we have a HUGE inventory of 65K machines from which to choose and if the group elects to do so you all can pick from 65 and 80 K machines. You could elect to expand requirements to and/or machines with 34R's! We can sell from the expanded inventory and in purchasing 80K's we might be able to replace the units from Europe's ever changing inventory in the future, but at present PleasantCreekHayEquipment.com wouldn't be able to replace a sold unit of equal specs.
One of the options might be to require the purchase of 80K's now, but should a unit be sold, replacing with 34R's!
Yow are a partner, not a client and purchase the unit commission free and take the same risks purchasing as I! and are not subject to 60:60:60 leasing!
Sign a non-disclosure agreement as listed below and CONTACT US ABOUT PRICE!
WE HAVE NOTHING SET IN STONE!
If a parter can't utilize the tractor and trailer in any way during the off season, it's possible the partnership will own one or more of the tractors and respective equipment. Under the model there is a licensed vehicle included! In a variety of flavors, each is a designated run about in case there is a down day or 2, provides a means of transport, to and from the motel, for both the staff and if need be the temps that run trailers if 24 hour chopping is required!
WE THINK HAVING EACH OF THREE PARTNERS OWNING A TRACTOR, TRAILER, MOWER, RUN ABOUT AND RAKE ARE THE MOST ECONOMICAL MEANS OF RUNNING AN LLC!
We only have 2 loaders in our entire inventory and if one wanted to purchase the following, I couldn't fault them and with 34"R's nor could i dispute a partner for wanting any of the other 34R's
See our Contractor Tractor's page! http://www.pleasantcreekhay.com/custom-operator-tractors
Above, licensed in Germany at 60K, in reality it too is a 65K machine (42 MPH)
The inventory has some newer 34R's as well!
f)Tractor 6 Pleasant Creek Hay .001.com price
FOB Albany 82.5% of 44,300 Euro x 1.41583 US Dollar(6-15-11)= $56445
Budget $46.299.54/unit Rough US$ $56,500
Please note from the homepage:
"2) A business relationship with several European Agricultural Machinery Dealers to do business with as Pleasant Creek Hay Equipment.com. (It is thought the margin between front PTO machines in Europe and that of the United States is approximately that of the V. A.T. (19%)). Using Pleasant Creek Hay.Com and its partnerships as store fronts, particularly during the initial year or 2 of operation, it is thought the net income from equipment sales might rival that of mowing hay."
Giving rise as to why a 17.5% reduction in price is possible!
$35,940 + 40,608+$52,200 + $56,500= $189,198 + $4000= $193,200
$193,200 Budget including 5th Wheel plates, $1000/
e)Tractor 5 Pleasant Creek Hay .001.com price
FOB Albany 82.5% of 49,700 Euro x 1.41583 US Dollar(6-15-11)=
Budget $46.299.54/unit Rough US$ $58,600
3a) Mowers: Refer to our mower page for details: http://pleasantcreekhay.com/content/11629
b) If available in Europe: Collectors, New? 50% of mower prices?
4a) Trailers: We were able to locate 6 48 footers, all from one source, competitively priced with more common 39 & 40' trailers. Unable to put together a partnership for the fall of 2011, Irene has shown us we need to think 40' trailers, making the below the only real option!
Before purchase by show of hands! I want to know whether we should:
1) purchase as planned, not anticipating any modifications
2) purchase, but plan on selling and modifying 40' trailers into 53' footers
3) Purchase 40' trailers with the idea of cutting one into 13' tailgates after the season ends (creating 3 53' trailers)
4) purchase a mix
5) Double Trailer, using slightly shorter traiers, 32' with 8' gates and long 16'hitches you can jack knife the second trailer after the dump 180 degrees, then unload trailer #1
Demo comes near the end!
5 of the 6 had Air suspension, preferable perhaps to spring suspension, making it easier to shim the difference in height of the front Cab Forward design of the JCB. For budget, let's use the highest 4 priced of the 6. For purchase offer the lowest 4!
$70,000=$14950 + ($16,950 x 2)+$19,950 + ($1200 Wheels & Tires)
There are no spare tires. All have 24.5" tires, I'm going to suggest we purchase 4 either 22.5" tires or 20" tires for one trailer, swaping out the rears on a trial basis to see if it isn't easier on the trailers supension., leaving us the change out as spares.
Purchase offer ($14,950 x 3) + $16,950 + ($1200 Wheels & tires)= $63,000
4b) Dollies: We've located a source purchased anywhere no quarantees regarding DOT inspections for $900. I suggest we spend an additional $100 assuring us the lights and breaks work.
$1,000/ is $4000 $1,000/ is $4000
$73,000 Grand total for Trailers Dollies $67,000
Grand Total for Fall of 2011: $504,000
For 2012, I haven't done an update including the shredder. Tractor prices are up, but we have dropped one, 53'trailers customized are going to approximately double their prices! Let's call it for Partnership A $650,000
For B Partnershps (all partners own their own tractor, mower and silage trailer) $375,000
It is recognized that all perspective partners are not in the same financial position. A Scientific Wild A Guess is that the Banks will allow /001 to borrow 25% at as low a rate as any, enabling partners via /001 to borrow at the same rate as they do from their hometown lender. Part of this financial package includes a line of credit equal to 25% of the purchase price, $126,000.
With further research, it might be found that we can borrow at a higher 35 or perhaps 50% rate enabling even lower "Buy Ins"
On review, besides a deposit, we are asking all perspective partners to sign a Non-Disclosure Agreement provided by the Harvard Business School.