Golfdom, December 2011

I n todays economy superintendents and club managers are faced with a number of issues to tackle from player demands to sustainability concerns to finances For successful results overcoming each obstacle requires preparation planning and flawless execution When the time comes to purchase a new piece of equipment you have a number of options Instead of letting the questions mount and the stress get the best of you at John Deere Golf we recommend setting a strategic plan to handle the process As a finance company representative Im often cautioned to offer an even handed objective point of view about various financial options So I feel strongly that there is only one way to think about acquiring new equipment and that is to make the process as easy as possible The big picture Every superintendent comes to the point where he or she can no longer put off the inevitable Its time to replace a piece of equipment More than likely the first thought is How am I going to get the funding We know superintendents have to figure out how to save everywhere they can and unfortunately there are no simple solutions when it comes to new equipment needs However understanding all of the options at hand and how to communicate them through your organization will make a considerable difference The first inclination might be to simply work out a plan for the immediate replacements However I recommend you consider the bigger picture and formulate a plan to replace all your equipment even if some of those purchases may be a few years in the future Having a long term plan enables rational consideration and replaces immediate concerns and worries with the confidence you need to make smart and efficient long term business decisions Plus taking a big picture view of how you need to structure all your purchases LEASE BUY OR enables you to better prioritize and more importantly justify your plan of action to your club manager and ultimately to the board of directors 1 CREATE A CYCLE The first step is to identify a replacement cycle for each piece of equipment Generally speaking there are some types of machines you know you can wait more than five years to replace such as tractors grinders and in some regions aeration equipment Other more heavily used equipment like greens and fairway mowers you ideally would want to update every three to five years Next weigh the choice between buying and leasing for each piece 2 CONSIDER LEASING VERSUS BUYING Buying offers the clear benefit of being able to call the piece of equipment yours at the end of the loan period and freedom from a continuing obligation to make payments However it also comes with higher monthly payments a down payment and continued maintenance costs Leasing on the other hand requires you turn over the equipment at the end of the lease lowers your monthly payments often eliminates the need for a down payment and leaves you in a better position to consistently use the newest and most advanced machines every three to five years The equipment lease program was a great way for us to get our fleet updated 22 Golfdom December 2011 A financial expert with John Deere takes a step by step look at acquiring equipment BY RHONDA FLANERY JOHN DEERE FINANCIAL