bertsmobile1
Lawn Royalty
- Joined
- Nov 29, 2014
- Threads
- 65
- Messages
- 24,995
It is a matter of philosophy
We ran the transport company with only very old, used vans and used motorcycles. The goods in transit don't know if they are travelling in a new Porche or an anchient Ford.
We took it from $ 0 to a $ 3,000,000 /pa company in 6 years in the extremely competitive Sydney domestic market.
When 7/11 happened our turnover stopped dead because advertising stopped dead.
We survived because we owned all our vehicles , radios , phones & depot.
We used the downtime to burn off employees accumulated holidays
Turnovers went down so a lot of landlords pushed up rents to cover their outgoings.
all of the small independant transport companies, running "tax avoiding" highly leveraged & leased gear went to the wall and a lot of good people who were silly enough to allow their accountants to convince them paying tax was a mortal sin, went to the wall, many lost their houses and oft their relatives houses as well, and a few even their marriages & life.
Running large outgoings in any business which is seasonal is fraught with danger should there be successive bad seasons.
Further to that the annual maintenance costs for our vehices were less than the insurance costs of a new one ( $ 2500/pa ).
The interest alone others were paying on their leasing fees each year was about what we paid fo a complete van.
Downside is we always ran 2 spare vans and 2 spare motorcycles so there was zerro downtime for breakdowns, maintenance or major repairs.
The exact same thing happened when Australia imported the GFC from the USA and again our turnover stopped overnight.
I always find it ammusing when i encounter someone who is paying out $ 50,000 / pa in leasing to avoid paying $ 20,000 / pa in tax, then they start whinging about the state of the country.
We ran the transport company with only very old, used vans and used motorcycles. The goods in transit don't know if they are travelling in a new Porche or an anchient Ford.
We took it from $ 0 to a $ 3,000,000 /pa company in 6 years in the extremely competitive Sydney domestic market.
When 7/11 happened our turnover stopped dead because advertising stopped dead.
We survived because we owned all our vehicles , radios , phones & depot.
We used the downtime to burn off employees accumulated holidays
Turnovers went down so a lot of landlords pushed up rents to cover their outgoings.
all of the small independant transport companies, running "tax avoiding" highly leveraged & leased gear went to the wall and a lot of good people who were silly enough to allow their accountants to convince them paying tax was a mortal sin, went to the wall, many lost their houses and oft their relatives houses as well, and a few even their marriages & life.
Running large outgoings in any business which is seasonal is fraught with danger should there be successive bad seasons.
Further to that the annual maintenance costs for our vehices were less than the insurance costs of a new one ( $ 2500/pa ).
The interest alone others were paying on their leasing fees each year was about what we paid fo a complete van.
Downside is we always ran 2 spare vans and 2 spare motorcycles so there was zerro downtime for breakdowns, maintenance or major repairs.
The exact same thing happened when Australia imported the GFC from the USA and again our turnover stopped overnight.
I always find it ammusing when i encounter someone who is paying out $ 50,000 / pa in leasing to avoid paying $ 20,000 / pa in tax, then they start whinging about the state of the country.