The right power equipment can make or break both the day-to-day operation and the long-term success of your business. But it's not enough to just choose the right pieces of equipment, you must also successfully manage the expenses surrounding the acquisition and maintenance of that equipment.

Unless you have a significant amount of cash on hand, it's generally best to finance at least part of your purchase. In fact, over 80% of the commercial power equipment that we sell at Horizon is financed.

But what financial product is best for you? In this article, we'll identify some of the advantages and disadvantages of financing, leasing, and renting commercial power equipment and look at some key questions that will help you determine which option is best for you.

Financing Power Equipment

Financing can be a great tool when there's a piece of equipment that you want to add to your fleet for the long-term, but prefer to keep cash on hand for other expenses. There are two main types of financing available:

1. Installment Loans - Commonly used for larger purchases, installment loans offer predictability. You get a fixed payment at a certain interest rate that pays for the unit over an agreed upon number of payments.

2. Credit Cards & Lines of Credit - Also referred to as revolving credit, credit cards and lines of credit offer more flexibility than a loan. Both can be used for multiple transactions and are automatically renewed as debts are paid off.

Why Finance?
• Financing helps you preserve cash flow by spreading your payments out over time.
• Financing usually offers the most tax deductions (e.g. depreciation, insurance, repairs, taxes, and interest). Be sure to check with your tax professional prior to purchase to confirm what deductions you're eligible for.

Disadvantages of Financing:
• Overall cost is higher than what you would pay if you had purchased the unit outright.
• Payments are typically higher than a lease.
• Repairs not covered under warranty are your responsibility.

Key Questions to Answer Before You Finance:
• Is this a loan, credit line, or credit card?
• What can be purchased with this account (e.g. specific product/manufacturer, accessories, used equipment, repairs & service)?
• What is the down payment?
• What is the monthly payment?
• What is the interest rate?
• What is the total cost over the lifetime of the loan?
• Are there any pre-payment penalties?
• What happens if you miss a payment?
• What are the tax benefits?

Leasing Power Equipment

Leasing can be a great tool for acquiring equipment that you would like to use for the mid to long-term, but it's important to be aware of the terms of the lease because there are different types. Some leases act as an extended rental agreement, but others are structured more like a loan and give you the option to purchase the unit when the lease is over.

Why Lease?
• Leases help you stay current with the latest technology and allow you to keep newer equipment in your fleet.
• Like a loan, a lease allows you to preserve cash flow by spreading payments out over time.
• Lease payments are often lower than loan payments.
• You can usually deduct your monthly payments as an operating expense for tax purposes. Be sure to check with your tax professional beforehand.
• Some leases cover maintenance.

Disadvantages of Leasing:
• Many leases limit the number of hours you can put on the unit and the penalty for going over that limit can be severe.
• Overall cost is often higher than what you would pay if you had purchased the unit outright.
• Leases generally offer fewer tax benefits than loans.

Key Questions to Answer Before You Lease:
• What happens at the end of the lease?
• If you decide to purchase the unit, what will the purchase price be?
• What is the down payment?
• What is the monthly payment?
• What is the interest rate?
• Is there a service contract? What does it cover?
• How many unit hours are you permitted? What is the penalty if you go over those hours?
• What happens if you miss a payment?
• What are the tax benefits?

Renting Power Equipment

Renting can be an excellent short-term solution, especially when it's unlikely that the equipment will become a permanent part of your fleet. But renting is not without risk and the higher cost of renting must be considered to ensure profitability.

Why Rent?
• You need additional equipment for seasonal work or to complete a project that's outside of your normal service offering.
• You want to try out a new piece of equipment before purchasing, financing, or leasing it.
• An important piece of equipment is in the shop and you need an immediate replacement.

Disadvantages of Renting:
• Renting generally costs significantly more than financing or leasing.
• It can be time-consuming to learn how to operate new equipment and to pick it up and return it to the rental company.
• You may be liable for damage to the unit, which can further inflate your costs.

Key Questions to Answer Before You Rent:
• What is the daily/weekly/monthly cost of renting?
• Is there enough margin in the job to cover the cost of a rental?
• Who is responsible for servicing or repairing the unit?
• Under what circumstances are you liable for damage to the unit?
• Do you need insurance coverage? If so, what is the cost?

About Coast Landscaping Inc.

Coast Landscaping Inc. has been a leader in all areas of water and landscape management since 1978 and works closely with both management firms and municipalities. They serve over 140 properties throughout California through their two divisions: Landscape Construction and Interior/Exterior Landscape Maintenance. 

Coast Landscaping Inc. is one of the few companies that has acquired both the State of California small business status (SBE) as well as the City of San Diego emerging Local Business Enterprise (ELBE) status. Their experienced team serves, but is not limited to, general contractors, municipalities, homeowner associations (HOAs), owner associations and commercial units.  

The Problem

Because of their size and span, Coast Landscaping was experiencing problems with consistency in their product applications. With 140+ properties being managed by a team of supervisors, different products were being used on different schedules, leading to inconsistent results.

Some supervisors were using standard N-P-K fertilizer, resulting in more frequent applications and higher labor costs. Others were also splitting their chemical applications from their nutrition, again increasing labor costs and ultimately reducing product effectiveness.

The Solution

Coast Landscaping Inc. worked with Horizon’s local Business Development Representative Neb Keeton to create a plan that would fit their clients' needs and circumstances, while limiting the use of chemicals and the need for additional applications. The new landscape maintenance schedule also needed to be financially responsible, especially when it came to managing some of their large commercial clients.

By moving to the TurfGro™ Extended Feed Fertilizer and the TurfGro™ Weed and Feed with Surge, Coast was able to achieve their goals of lowering chemical usage and labor costs while increasing client satisfaction. In addition, Neb helped them execute the new plan by providing informative materials for employee safety training and MSDS lists.

The Result

Since the conversion, Coast Landscaping Inc. has been able to use smaller application rates with less frequency, reducing overall costs especially cost per application. They have been able to pass those savings on to their clients, resulting in more satisfied and loyal customers.

The TurfGro Extended Feed Fertilizer has produced healthier looking plant material, while the pre-emergent weed control has improved appearances while helping reduce labor costs. Tyler Mason, Coast Landscaping's Operations Coordinator, noted, “By incorporating pre-emergent into the fertilizer and the aid of slow-release fertilizers we have been able to increase the effectiveness of the fertilizer while eliminating excess growth, increasing mowing efficiency, and building a healthier root mass.”

When you have a 2 cycle engine that's running poorly or not at all, a simple solution to try before taking the unit into the shop is Mechanic In a Bottle. In this FAQ, Toley McGettigan, Horizon's National Sales Manager for Power Equipment, describes how Mechanic In a Bottle works and provides a few steps for using it correctly in both poor-running and non-running engines.

Video Summary

Mechanic In a Bottle is a synthetic fuel additive that cleans and revitalizes 2 & 4 cycle engines. It removes varnish from the fuel system without having to remove the carburetor, removes carbon deposits and water, revitalizes rubber and plastic components, and cleanses the unit's fuel system so that it starts efficiently and operates in top condition.

Usage Instructions for a Poor-Running Engine

  1. Mix 1 oz of Mechanic in a Bottle per gallon of fuel.
  2. Fill the fuel tank and run the engine for 5 minutes.
  3. Let the unit sit for 8 hours.

Usage Instructions for a Non-Running Engine

  1. Drain the fuel system completely.
  2. Add Mechanic In a Bottle to the tank. 2 oz for small power equipment (e.g. string trimmers), 4 oz for larger equipment (e.g. mowers).
  3. Press the primer bulb to get the Mechanic In a Bottle up into the engine.
  4. Let the unit sit for 8 hours.
  5. Pour in a fresh tank of gas and start the engine.

When left untreated, the ethanol blended into most gas can damage 2 cycle engines. In this FAQ, Toley McGettigan, Horizon's National Sales Manager for Power Equipment, describes the problems ethanol causes over time and offers a simple solution that can keep the engine in your 2 cycle power equipment running properly.

Video Summary

One of the biggest threats to the long-term performance of a 2 cycle engine is ethanol, which is blended into most fuels. Many 2 cycle products are on the edge of not being able to function with anything over E10 (10% ethanol, 90% gas), and E15 fuels (15% ethanol, 85% gas) are becoming more common.

The problem with ethanol is that it attracts water and forms water bubbles in the fuel. Engines can have trouble passing water, which keeps the engine from running properly and affects power. Water can also make the rubber pieces inside in the engine brittle.

To keep your engine safe, it's important to use:
1. A high octane fuel with as low of an ethanol rating as possible.
2. A product like Ethanol Shield, which stabilizes the fuel and bonds to the water, absorbing it back into the fuel.

Ethanol Shield Usage Instructions - Lawn & Garden (2 & 4 cycle):
  1. Use in every tank fill-up.
  2. Pour 1 oz. per 2.5 gallons of fuel in fuel tank or storage container.

Looking to get more hours between hydraulic oil changes and save money in the process? A simple solution is to use an oil that is specifically designed for your mower's hydraulic system. In this FAQ, Toley McGettigan, Horizon's National Sales Manager for Power Equipment, discusses the benefits of moving to a hydraulic oil.

Video Summary

In commercial landscaping, many of the large riding and walk behind mowers have a hydraulic system. This video discusses hydraulic fluid or hydraulic oil and why it's important that you use the right hydraulic fluid in your mower's hydraulic system.

The Problem with Using Mobile 1 in a Hydraulic System

In the past, the standard oil for hydraulic systems was Mobile 1. A number of years ago, the EPA required Mobile 1 to take the zinc out of their oil because of environmental concerns. Mobile 1 is often used as engine oil and the EPA didn't want zinc being burned off into the atmosphere.

The problem with zinc no longer being in the oil is that it causes the oil to break down at high temperatures and you don't want the oil breaking down in your hydraulic system.

The Benefits of Using Hydro Oil

It's a good idea to use an oil that is designed specifically for hydraulic systems. Since it's not an engine oil, Exmark has added zinc back in to their Premium Hydro Oil. This oil stays contained, doesn't burn off, and goes to a higher temperature without breaking down.

Typically if you're using Mobile 1 in your hydraulic system, you're going to change your oil about every 200 hours. If you use Exmark Hydro Oil with the zinc back in it, you're going to change it about every 500 hours. So it's actually going to work out longer and costs you less money over time.

Using the right oil can make a big difference in the long-term performance of your outdoor power equipment. In this FAQ, Toley McGettigan, Horizon's National Sales Manager for Power Equipment, shares 3 tips to help you get the best oil for your 2 cycle landscape equipment.

Video Transcript

In this video, we're going to talk about oil and which is the best oil for your outdoor power equipment.

Tip #1 - Use D Rated 2 Cycle Oil.

It's important that you use what's called a D rated 2 cycle oil. There are two different organizations. The Japanese Standards Organization (JASO) and the International Standards Organization (ISO) that rate oil.

On the bottle itself, you'll find a rating that tells you exactly what kind of oil it is. D is currently the best oil you can get. So make sure you're using a D rated oil when you're doing your mixture.

Tip #2 - Mix Your Fuel and Oil at a Ratio of 50:1.

Also on the label, you're going to find a ratio of 50:1 for commercial handheld landscape equipment. You want to make sure that you follow that ratio. You're going to take the bottle for the right size. This happens to be a 12.8 ounce bottle, which mixes to 5 gallons. So I would take 5 gallons of fuel in the proper no spill container and I would take the 12.8 ounce bottle and put it in with the five gallons of fuel and mix it up.

Very important that you get the ratio of 50:1 correct. If you undermix it and you don't have enough oil in there, you could potentially have a lean seizure with your engine, which would cost you a lot of money. Or if you overmix it, you get a lot of gummy deposits left in your engine that can affect the performance of your handheld product.

Tip #3 - Use an Oil with Cleaning Properties Every 5-7 Tanks.

Now we can take a look at our TurfGro oil and there's a Shindaiwa or Echo Red Armor Oil. They're both D rated oil. The difference is this Shindaiwa oil actually has some cleaners that are in the oil as well. So it's actually cleaning your engine while you use it.

Now you don't need to use this all the time. This is something that you would want to would want to run through a tank maybe every 5-7 tanks. You would want to have this in there. It's quite a bit more expensive than the standard oil. So you can use it all the time, but you're going to end up paying more money in the long run to do so.

So be sure you're always using a D rated oil and every now and then, mix in an oil that has a little more of the cleaning properties like the Shindaiwa Red Armor or Echo Red Armor Oil and you'll get a better result.

Following the lowest snowpack ever recorded and with no end to the drought in sight, Governor Edmund G. Brown Jr. today announced actions that will save water, increase enforcement to prevent wasteful water use, streamline the state's drought response, and invest in new technologies that will make California more drought resilient.

A full copy of his executive order can be found here.

For the first time in state history, the Governor has directed the State Water Resources Control Board to implement mandatory water reductions in cities and towns across California in an effort to reduce water usage by 25%.

Actions provided in the executive order that directly affect the green industry include:
 - Replacing 50 million square feet of lawns throughout the state with drought tolerant landscaping.
 - Significant cuts in water use on campuses, golf courses, cemeteries and other large landscapes.
 - Prohibitions on irrigating with potable water in new homes and developments unless water-efficient drip irrigation systems are used,
 - Bans on the watering of ornamental grass on public street medians.

Increased Enforcement Against Water Waste

The Governor's executive order also calls on local water agencies to adjust their rate structures and utilize surcharges, fees, and penalties to maximize water conservation. Urban water suppliers are required to provide monthly information on water usage, conversation, and enforcement to the Water Board.

A smart water controller is an essential part of an water efficient irrigation system, but its impact is limited when the rest of the system isn't operating efficiently. When you're installing a new system, it's easier to incorporate complementary water saving techologies and create an efficient system. But when you're working with an existing system, the idea is to make simple adjustments that can have an immediate impact on your customer's water bill.

Water conservation is a huge trend in our industry, but it wasn't always that way. There are currently millions of irrigation systems in use across the US that were designed to keep turf and plants green and healthy, but they weren't designed to conserve water. Retrofitting these systems is a huge opportunity and many manufacturers offer smart water components that can be used alongside their older technology.

In this article, we're going to look at 4 different ways to immediately improve the water efficiency of a system that already has a smart water controller and uses Rain Bird 1800 Series sprays for distribution. Rain Bird 1800s have been a leading industry solution for 3 decades and can be found in a variety of residential and commercial settings. If you're having problems with dry spots, run-off, or need to improve water efficiency, there are a number of changes you can make without pulling out the shovel.

#1 Pressure Regulation

You can have the right controller and the right spray body, but if the system pressure is too high for your spray nozzle, you'll end up wasting a lot of water. Usually you'll see this in the form of fogging or misting, which atomizes the water and blows it onto sidewalks and hardscapes, greatly reducing the distribution uniformity of the nozzle. When the distribution uniformity of your sprays drops, you have to run the system longer to avoid dry spots.

The optimal psi for most fixed arc spray nozzles is 30 psi. For rotary nozzles, it's generally 45 psi. Check the manufacturer's specs to find the optimum pressure for the type of nozzle you're using and then check the pressure of the system. When the pressure is too high for your nozzle, you need to pressure regulate.

According to Bernouli's equation, every 5-psi reduction in pressure reduces water usage by 6-8%. This means a 70 psi system reduced to the recommended 30 psi can result in more than 50% in water savings. There are 4 main ways to regulate pressure in a system utilizing Rain Bird components:

1. Get a pressure regulator for the entire system.
2. Build a pressure regulator into the control valve.
3. Install a Rain Bird PRS-Dial at the valve.
4. Retrofit the existing Rain Bird 1800 spray bodies with P30 (for fixed arc nozzles) or P45 (for rotary nozzles) Pressure Regulating Spray Heads.

#2 Stop Low Head Drainage

If you're working on a property that has sloped surfaces and you see water seeping out some of the heads, you likely have low head drainage. With low head drainage, every bit of water from the valve to the low head will be wasted every time the water is shut off, which is even more problematic if you're cycle and soaking.

There's two quick fixes for stopping low head drainage in Rain Bird 1800s:

1. Put an under-the-head check valve in the spray body.
2. Retrofit the spray with a head that has a built-in Seal-A-Matic (SAM) check valve. You'll want to use 1800 SAM heads when the system is already operating at optimum pressure and 1800 SAM-PRS when you need both a check valve and pressure regulation.

#3 Use High Efficiency Nozzles

Getting higher distribution uniformity (DU) is very important if you want to reduce run times and the amount of water you're using. You want the entire area to receive the amount of water it needs to maintain green lawns and colorful plants. No more, no less. The more uniform the water distribution, the shorter the run time will be for the driest spot.

If you're having trouble with wind conditions, run-off, dry spots, or just want to save your customer water, you can retrofit 1800 sprays with a high efficiency nozzle like Rain Bird's HE-VAN and R-VAN Nozzles.

HE-VANs are Rain Bird's high efficiency variable arc nozzles. Because they adjust from 0˚ to 360˚, you can simplify the inventory you carry in your truck and HE-VAN's lower trajectory and larger droplets resist wind so the water lands exactly where you want it. He-Vans have a DU of over 70%, which allows you to save water and deliver healthier turf, while shortening run times by up to 35% compared to traditional VANs.

R-VANs are Rain Bird's high efficiency rotary nozzles. Reaching a distance of 13-24', R-VANs are a great retrofit for poorly designed sprinkler systems where spray heads were spaced too far apart or the pipes are too small. Compared to spray arc nozzles, they can achieve a greater radius while using less water. Retrofitting standard spray nozzles with R-VANs can reduce flow by up to 60% and improve water efficiency by up to 30%. Nozzle spray pattern and distance can easily adjusted by hand. No tools required.

4. Plan for Overlap

Are you seeing brown spots around your spray heads? That's an indication that you're not getting good head-to-head coverage.

While it's important to know the manufacturer's catalog numbers, you shouldn't rely on them 100%. The important thing to remember is that those numbers were created in a laboratory under perfect conditions. Things change when you get out in the field.

Give yourself some overlap. The IA recommends a foot overlap, but that might still be a little close. If you're working with a system with 12' spacing, use 15' nozzles and then adjust the distance down.

With drought becoming a common topic in the news, water restrictions becoming more commonplace, and cash for grass programs paying property owners to pull up their lawns, it's important to be prepared when customers ask you to remove their turf.

If your company specializes in maintenance services, make no mistake that turf removal is a huge threat to your company's longevity. While the short-term money from turf removal jobs will pay your bills now, what will happen to your business a few years from now when there are fewer lawns to mow and fertilize? How will you stay in business when the customers that needed you on-site once a week only have you come out once a month or once a quarter?

As an EPA WaterSense Distribution Partner, Horizon Distributors is devoted to keeping you at the forefront of the water conservation movement. We recognize that water is a scarce resource and there is no doubt that water and fertility requirements will drive significant change in the way you're able to maintain your customers' landscapes in years to come. But these changes can be viewed as either an obstacle or an opportunity.

Within the next 5 years, it's estimated that basic chemical manufacturers will spend nearly $3 billion acquiring companies that focus on smart water and soil health solutions. New technologies are making it possible to maintain landscapes with less water and fewer fertilizer inputs – The big question is whether you are prepared to adapt to these changing industry conditions.

Horizon has developed a number of resources to help you take advantage of smart water and smart soil technologies. In this article, we're going to focus on how to talk to your customer about their concerns and the environmental benefits of having turf.

What Does Your Customer Really Want?

The first step in properly addressing your customer's concern is to find the real reason why they want the turf pulled. It's one thing if they aren't enjoying or actively using their lawn and want to do something else with their yard. But more often than not, when a customer asks you about turf removal, they are doing so because of environmental concerns.

Maybe they saw a story on the news or had a chat with a misinformed neighbor and now they are concerned that their lawn is "bad for the environment." When you take the time to dig a bit deeper, you'll probably find that they really just want to do their part in reducing water consumption, but they may also be concerned about other environmental issues like fertilizer runoff.

Whatever their true concern is, you can either fight it or work with it. For example, if your customer genuinely wants to reduce their environmental impact and avoid runoff and you've been using synthetic fertilizer on the property for years, it's a good time to switch them over to a program that actively builds healthy soil. The true cost of a program that takes advantage of slow release fertilizer is usually less expensive when you consider the cost of labor, gas, and additional maintenance.

And while it is your responsibility to help your customers comply with local water restrictions, it's important to note that turf removal alone won't make a dent in water consumption when you look at usage from a broader perspective. According to the USDA, agriculture accounts for approximately 80% of our nation's consumptive water use and over 90% in many western states. To compare, landscape irrigation is only about half (roughly 3.5%) of Domestic & Commercial use, which accounts for about 7% of consumptive water use.

Naturally, it's our responsibility as water managers to do our part in conserving water. The EPA reports that as much as 50% of landscape water use goes to waste due to evaporation, wind, and overwatering. Waste associated with irrigation systems can in most cases be attributed to poor design, inadequate maintenance, or improper use. With proper education and successfully integrating water saving technologies, we can help the customer keep their lawn and save a significant amount of water.

6 Environmental Benefits of Turf

There is a growing perception that turf is bad for the environment, but in reality the benefits of turf far outweigh the negatives. As green industry professionals, it's our responsibility to share the benefits of turf with our customers and to build programs that deliver those benefits.

#1 Turf Helps Reduce the Greenhouse Effect

Like all plants, turfgrasses capture atmospheric carbon dioxide and use it to create energy via photosynthesis. According to the Department of Horticulture and Crop Science at The Ohio State University, an average sized healthy lawn can capture as much as 300 lbs of carbon per year and a golf course fairway can capture 1,500 lbs of carbon per year.

Critics of turf often point out that emissions from mowers and other maintenance equipment minimize this benefit, but it has been shown that properly managed turf areas can capture anywhere from 4 to 7 times the carbon emitted from equipment.

#2 Turf Creates Oxygen

Even elementary school children know that plants release oxygen during photosynthesis, but the question is how much?  A 50' x 50' turf area can be expected to produce enough oxygen to meet the annual needs of a family of 4 and an acre of grass can produce enough oxygen for 64 people.

#3 Turf Combats the "Heat Island" Effect

Because of the materials used in the construction of roads and buildings, urban areas usually have notably higher temperatures than surrounding rural areas, which is known as the "heat island" effect. The EPA notes that "heat islands can affect communities by increasing summertime peak energy demand, air conditioning costs, air pollution and greenhouse gas emissions, heat-related illness and mortality, and water quality."

Turf can help minimize the heat island because it is much cooler than other common surfaces. A study from BYU found turf temperatures to be 20 degrees cooler than bare soils and 40 degrees cooler than synthetic turf.

#4 Turf Traps Dust

Hundreds of millions of tons of dust circles the earth annually and dust particles have been associated with premature mortality and negative health effects. It's estimated that lawns in the U.S. alone are able to trap an estimated 12 million tons, which keeps our air cleaner and fresher.

#5 Turf Minimizes Soil Erosion

Turf can play an important role in soil erosion, a pressing environmental problem that costs between $6 and $16 billion a year. Nearly 6 billion tons of soil is washed or blown away each year. Because of its dense root system, turf is an ideal and cost-effective way to absorb water and stabilize soil.

#6 Turf Protects the Local Water Supply

Critics of turf are often justifiably concerned about pesticides, herbicides, and fertilizers entering the local water supply, but leaching can be minimized through effective management practices that build healthy turf and soil.

In fact, healthy turf can actually protect the local water supply because it's able to purify water as it moves through the root zone, which is a reason why turf is often installed next to roads and parking lots. Soil microbes in the root zone can help break down chemicals coming off hardscapes into harmless materials.

If you're looking for a lighting system that makes it easy to add additional fixtures as your landscape matures, Unique Lighting System's new Elements Series Alloy line is an option that can cut out a lot of unnecessary installation time.

Element Series fixtures come with a FLEX Auxiliary Wire Lead that allows you to add additional fixtures without having to splice the wire or run extra wire back to the hub.

In this 2 minute video, Mike Borgeson, National Trainer for Unique Lighting Systems, shows you how the FLEX Auxillary Wire works and how to install an additional fixture in 4 simple steps.

FLEX Auxiliary Wire Lead Overview & Demonstration