Blood Sucking Sales Reps 😤

Most profits in the home service business get sucked out. The money goes to equipment manufacturers and middlemen. This makes me mad.  Stop listening to blood sucking sales reps that don't care about your bottom line.

Let's break a myth that keeps business owners stuck: "If the monthly payment is low enough, it's worth it."

Here’s why that thinking can hurt your bottom line:

It’s Not Just One Job: A dealer sales rep might say, “This equipment is only $2000 a month—just one job and it pays for itself!” But that’s misleading. To cover that payment with profit, you’ll need closer to $10,000 in revenue. If you’re only landing one job, renting would make far more sense.

Debt Adds Up Fast: One piece of equipment turns into 10, and now you’ve got $20,000 in monthly payments. That means you’ll need $100,000 in monthly revenue to break even on payments. I recently spoke to a business owner with $35,000 in loan payments each month. The business generated $100,000 in revenue each month. That is a VERY hard business to make profit in.

Hidden Costs Mount: Insurance, maintenance, storage, and even downtime for repairs pile on extra costs. The real question is: how much are you actually using these assets? If your equipment isn’t working every day, it’s not paying for itself. Sales reps will say, "Unlike employees, this equipment won't call in sick."" Even equipment breaks down, so don't buy this sales pitch.

Before committing to a payment plan, calculate the true cost. Does the equipment make enough money to be worth it? Or, would renting be smarter? Focus on maximizing asset utilization.

Stay lean, stay profitable.

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