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Going halves on a chipper - the pitfalls?


TimberCutterDartmoor
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Personally i would not bother - if you need a new trailed chipper then buy one on your own terms , As you have said things are working well at the moment so why complicate the situation by going into a partnership ? im pretty sure that if it was me that was working with you i would be hapy to hire you in with your chipper just the same as you would still hire me in to do the climbing work . i really would not spoil wat is currently a good working relationship

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Some more detail on the situation;

 

We work together a lot and currently I sub to him with the JB M500; the volume of work is proving very hard on the wee chipper (gone from an ex demo machine to a well run-in tool in no time, that said it serves us admirably and I've gained some muscles only wee chipper feeding creates!!).

 

The arsing about with second trailer (Ifor P7e) co-owned with another "mate" (who only uses it weekends but leaves crap in it for me to find on monday morning :thumbdown:) to carry the JB means that by eliminating the JB from jobs will mean less bother in that respect; he tows chipper; I tow chip box.

 

He is winning a lot more work than me on the domestic arb respect which I don't really mind since I don't have to deal with Mr Jones and Mrs Smith. I do forestry and firewood whereas he doesn't. It's currently about 70% his jobs and 30% mine where I'm sub chipping i.e of the time we work together 70% is me subbing to him and 30% him climbing for me.

 

From the above, you might argue that the chipper earns him more money than it does me ? (based on the ratio above)...?

 

He has been on the lookout for his own road-tow for some time but is only seeing entecs at silly money and is restricted by the 750kg limit whereas I'm not - meaning he can't and won't tow the chip-box (1 ton tipper plus chip). Seems oblivious and totally unwilling to do extra test.

 

Wants it occassionally for those "little jobs" that don't warrant 2 men; would get tipper conversion for his hilux. Uses my chip site all the same! ALARM BELLS???!!!

 

Chipper would be stored in his garage / my garage / my yard-woodshed.

 

My over-riding concern is suddenly he has chipper so doesn't need me any more; effectively F's me over. Like above says - I'd have funded his success and my demise.

 

Machine in question is bargain Jensen 750 Contractor with 600 hours but spotless and impeccably maintained.

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TCD, if he could replace what you do for him with a tow behind chipper, then he would of done so.

From his point of view, he is a climber who has a guy come out, drive another vehicle, remove the chip and work the ground for him and all he has to do is turn up with a kit bag and pay you back swining about, NOW the deal has go even better, this same guy is willing to go HALVES on a chipper, and make the job go even sweeter.

He is on a winner, you can replace him with a £100 a day monkey, he cant replace you with a £100.

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now you have clarified the position i would be even more keen to buy the chipper my self if i was you , alto your going halves on the chipper its already clear that he will get 70% use of the chipper but only have to pay for half of the machine!!!!

 

why not buy the machine your self and save all the grief , lets be honest you will only get 30% usage of the machine for your self !!

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My head is starting to hurt!

 

He has been contract climbing for the last 10 years and only in the last 12-18 months started his own work. He advertises extremely aggressively spending circa £6-8k per year on advertising which is 10 times what I would spent p/a!

 

With me he has gained 1 extra truck, 2 trailers, a wee chipper, large saw (he only owns a Ms200 and 341), road signs and cones, extra blowers, practically all the kit in my outfit he fancies. Add chip disposal (extra 10 mile trip at the tired end of the day). He gets this for £150 a day.

 

He gets 1/2 the Jensen, converts his truck to hold chip, uses my chip site, gets his bro-in-law at £50 a day and I'm history.

 

Decision made then. Sell some more vintage saws.

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plus ensure he can't use your chip site unless you are in on the job, even if that is only £20 at the end of the day.

 

You hold all the keys to his business at the minute, if you didn't have to run all the kit you might be able to hit the advertising the same as your competition.

 

HE IS YOUR COMPETITION

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