Tree care business owners face tough decisions every day. One of the biggest might be sitting in your yard right now, piled up and waiting for disposal: your wood waste. As that pile grows, so does the nagging question: “Is it time to invest in a grinder?”
It’s not a simple yes or no. Adding a horizontal or tub grinder to your equipment fleet is a significant move that can shake up your entire operation. It could streamline your waste management, open new doors for your business and potentially help your bottom line through additional revenue streams. But it’s also a hefty investment that demands careful consideration.
“We see a lot of tree care pros wrestling with this decision,” said Jeremy Shannon, product specialist for Vermeer recycling and forestry equipment. “They know a grinder could change their business, but they’re not always sure if the numbers will work in their favor. It’s about more than just processing wood waste faster – it’s about reshaping your entire business model.”
Assessing current operations
Before exploring horizontal and tub grinders, it’s essential to evaluate your current business model. Consider your annual wood waste volume, current disposal expenses and client demand for related services. Shannon advised, “Scrutinize your operational data. If waste disposal is consuming a significant portion of your budget, or if you’re declining jobs due to debris processing limitations, it might be time to consider a grinder.”
Rising disposal fees at landfills and wood waste facilities are becoming a significant concern for many tree care contractors. These fees can vary in price per ton, increasing business expenses and impacting the cost of service to customers. As Ted Dirkx, recycling and forestry sales manager at Vermeer, pointed out, “Tree care contractors often face substantial annual costs for waste disposal. By investing in a grinder, they could potentially turn that waste into a valuable product.”
Exploring new revenue avenues
A grinder investment can lead to diversified income streams. Possible opportunities include selling processed wood waste as mulch, supplying biomass fuel, offering premium onsite grinding services and expanding into larger land clearing projects.
“Market research is crucial,” Shannon explained. “Understand the local demand for mulch and wood chips, and strategize your pricing accordingly.”
A grinder can open up new revenue streams for your existing tree care business. By processing your wood waste onsite, you can create marketable products like mulch. This not only reduces disposal costs but also provides an opportunity to offer additional services or products to your current customers and potentially attract new ones.
Investment considerations
While the potential benefits are substantial, the costs associated with adding a grinder can be significant. Beyond the initial purchase price, factor in operational expenses, potential additional labor costs, transportation requirements and storage needs.
According to Shannon, it’s essential to consider more than just the initial purchase price. Operational costs play a significant role in your return on investment, so it’s advisable to project total costs over several years to get a clearer financial picture.
Additionally, consider the equipment you’ll need to support your grinding operation. To handle materials efficiently, you may need machines such as an excavator or wheel loader. If you’re planning to expand into colored mulch production, coloring equipment would be necessary as well.
Equipment selection
When considering a grinder, you’ll need to choose between a tub grinder or a horizontal grinder based on your operational needs. Tub grinders excel at processing bulky materials like stumps and large diameter logs, making them ideal if you frequently handle these types of waste. They can also be efficient for processing loose green waste. Horizontal grinders are well-suited for processing long materials like branches and longer trees and can handle various wood waste materials.
“The goal is to find equipment that aligns with your current needs while allowing for future growth,” said Shannon. “It’s about striking the right balance for your specific situation.”
Real-world examples
The impact of adding a grinder to a tree care operation can be significant. Jesse Montoya, owner of Your Way Tree Service in Los Angeles, found that after adding a Vermeer TG5000 tub grinder to his operation, he was able to save an estimated $30,000 in dump fees each month. Moreover, he opened up new revenue streams by selling mulch to landscapers, garden centers and golf courses, which, according to Montoya, led to an estimated 25% growth in revenue.
Another example is Hansen’s Tree Service, which expanded its services by adding a Vermeer HG6800TX horizontal grinder. According to Chad Hansen, president of Hansen’s Tree Service, “The HG6800TX is highly productive and fairly fuel efficient compared to some of the other machines on the market. In the clearing and construction world, customers expect you to perform. The HG6800TX has been averaging 500 yd³/hr to 600 yd³/hr (382 m³/hr to 459 m³/hr) on the primary grind. This includes large logs and brush.”
Alternative approaches
Alternative strategies exist for businesses that are not ready for outright purchase. These include renting for occasional use, subcontracting grinding services or exploring cooperative ownership with other tree care companies. These approaches can serve as stepping stones, allowing you to assess demand and refine processes before purchasing.
“These alternatives can be valuable learning experiences,” Shannon explained. “They allow you to gauge demand and refine your processes before making a significant investment.”
Renting, in particular, can be an excellent way to test different models and see how a grinder fits into your operation before making a substantial investment.
Return on investment analysis
A comprehensive ROI analysis is essential. Consider potential revenue increases, cost savings from reduced waste disposal, and efficiency gains that could allow for increased job capacity, which factor in both tangible and intangible benefits, such as improved customer satisfaction and environmental stewardship.
Shannon emphasized, “ROI extends beyond immediate financial gains. Consider how a grinder could position your company as a full-service, environmentally responsible provider.”
When calculating ROI, remember to factor in potential time savings. For example, Montoya of Your Way Tree Service estimated that eliminating trips to the landfill would save six to eight hours per day in time and labor.
Strategic investment for business growth
The decision to incorporate a horizontal or tub grinder into your tree care business requires careful analysis and strategic foresight. While the initial investment is substantial, the potential benefits are significant:
- Reduced waste disposal costs
- New revenue streams from selling processed wood products
- Increased operational efficiency
- Expanded service offerings
As you weigh this decision, consider your current operational needs, future growth plans and the specific demands of your local market. Assess the potential return on investment, factoring in both immediate cost savings and long-term revenue opportunities.
Shannon concluded, “Each tree care business faces unique economic conditions. Thoroughly assess your specific situation, considering both short-term impacts and long-term economic benefits. A grinder can be a powerful catalyst for business growth when approached strategically. It’s not just about buying a piece of equipment – it’s about investing in the future of your business.”
For more information on how a grinder could diversify your tree care business, get in touch with your local Vermeer dealer.
This article contains third-party observations, advice or experiences that do not necessarily reflect the opinions of Vermeer Corporation, its affiliates or its dealers. Testimonials and/or endorsements by customers in specific circumstances may not be representative of normal circumstances experienced by all customers.
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