Part I. How to Make Money Out of Special Purpose Machinery
The work of powerful backhoe loaders, smart road building machinery and other modern special purpose machines is fascinating. And it arouses natural interest in active and hard-working people: is it possible to buy such equipment and start making money out of it?
Personal experience
The most active and interested people will study this issue thoroughly and will find easily good examples of making money out of equipment. There are lots of them.
Supplier of special purpose machinery Borusan Kazakhstan Company has formed a wide circle of business partners whose business on special purpose machinery gives an illustrative example. They started with purchase of just one unit of Caterpillar® equipment, recovered their costs successfully and developed their business by purchasing new special machines of this brand. For example Individual Enterprise Elvira, Bazis K LLP, SMP-Kyzylorda LLP and others.
Director of SMP-Kyzylorda Temirkhan Malikovich Alimkulov holding the title of Honorable Builder of Kazakhstan tells:
- “I bought my first Cat 428 backhoe loader on credit loader in 2007. Then I established good business relations with the supplier of the equipment Borusan Kazakhstan. The machine has no major faults during 5 years. We just changed oil and filters. In other words, we did not bear any significant costs in that period. And this backhoe loader paid for itself in 2-3 years.
- In 2008 I was invited as a special guest to Caterpillar Demonstration Center in Malaga, Spain, for assessment. We were shown the capabilities of these machines and maintenance processes. After that I purchased additionally several Cat special purpose machines.
- As of today there are 7 Cat machines in our fleet: one of them was already used at the moment of purchase, the remaining were new. These machines demonstrate high quality and efficiency, and Borusan Kazakhstan company provides high quality support and after-sales service.
- Our business area is construction. Most of all we use earth moving machines. Cat 428 and Cat 422 backhoe loaders are used as loaders and small excavators. Cat 320 large trackhoe excavator, as well as Cat 320 and Cat 315 are mainly earth moving machines.
- We win government contracts through participation in construction tenders. In this area it is very important to meet deadlines, it means that we need good equipment to perform works. To receive offers in private sector we place advertisements on industry specific websites.
- It is very convenient for us to purchase Caterpillar equipment from Borusan Kazakhstan using Cat Financial instrument for leasing of special machinery. I used it to purchase my machines. This is a well-tuned system that does not cause any unnecessary troubles. For this transaction we provided necessary documents, our financial position was stable, and the procedure was completed quickly and easily.
- Special machinery is in high demand in Kazakhstan today. If you take your business seriously you need reliable equipment. Any self-respecting businessman has at least one or two Cat machines in the fleet.
- These machines may be more expensive as compared to similar equipment, but they prove themselves in operation. And if you purchase them using Cat Financial credit facility the process is much easier. Moreover, taking into account the fact that in 2020 tax exemptions were introduced for small and medium business enterprises in our country this business becomes even more profitable.
- Of course, like in any business entrepreneurs may face various problems. We also have some problems. But we haven’t had any problems with this equipment so far”.
Bazis K LLP’s activities are connected with construction of buildings and roads. Parkhat Karibayevich Atambayev — director of the company says that any Cat construction equipment in the fleet of any construction company demonstrates such company’s status and adds credibility. You must have reliable equipment from a reputable manufacturer to sign independent-work contract on favorable terms and the more so to win government contracts.
- “We have achieved success in our business with Cat special machinery, — the Director of Bazis K says — It is undoubtedly reliable equipment. I purchased it 10 years ago. And repair was required for the first time in this year - 2019.
- This equipment may be expensive but in my business I always insist on use of these machines. We tried to work with other brands, we saw the difference and do not use them any more. We are satisfied completely with the service provided by the supplier in Kazakhstan. So the equipment is worth its cost.
- I recommend to purchase equipment rather than to take on lease where possible. This equipment always proves itself and there is ever growing demand for it in the market.
- As per my calculations 35 millions invested in one unit will be returned in three years”.
Quite well-known Individual Enterprise Elvira also started its business with purchase of one Cat 428 backhoe loader from Borusan Kazakhstan company. The owner operated this machine by himself. After some time the company purchased the next model of the same loader. Then they purchased additionally two units, then three units, and three units were leased.
As a result of their proactive attitude, goal commitment and high motivation little known ordinary individual enterprise became a successful and profitable company. According to the company’s management they are currently planning to purchase additionally 12 Cat excavators of different models.
As of today there are 12 Cat excavators of different models in their fleet: from 428 to 430.
In the next second part we will list 5 main advantages of doing business on special machinery.
Part I. How to Make Money Out of Special Purpose Machinery
The work of powerful backhoe loaders, smart road building machinery and other modern special purpose machines is fascinating. And it arouses natural interest in active and hard-working people: is it possible to buy such equipment and start making money out of it?
Personal experience
The most active and interested people will study this issue thoroughly and will find easily good examples of making money out of equipment. There are lots of them.
Supplier of special purpose machinery Borusan Kazakhstan Company has formed a wide circle of business partners whose business on special purpose machinery gives an illustrative example. They started with purchase of just one unit of Caterpillar® equipment, recovered their costs successfully and developed their business by purchasing new special machines of this brand. For example Individual Enterprise Elvira, Bazis K LLP, SMP-Kyzylorda LLP and others.
Director of SMP-Kyzylorda Temirkhan Malikovich Alimkulov holding the title of Honorable Builder of Kazakhstan tells:
- “I bought my first Cat 428 backhoe loader on credit loader in 2007. Then I established good business relations with the supplier of the equipment Borusan Kazakhstan. The machine has no major faults during 5 years. We just changed oil and filters. In other words, we did not bear any significant costs in that period. And this backhoe loader paid for itself in 2-3 years.
- In 2008 I was invited as a special guest to Caterpillar Demonstration Center in Malaga, Spain, for assessment. We were shown the capabilities of these machines and maintenance processes. After that I purchased additionally several Cat special purpose machines.
- As of today there are 7 Cat machines in our fleet: one of them was already used at the moment of purchase, the remaining were new. These machines demonstrate high quality and efficiency, and Borusan Kazakhstan company provides high quality support and after-sales service.
- Our business area is construction. Most of all we use earth moving machines. Cat 428 and Cat 422 backhoe loaders are used as loaders and small excavators. Cat 320 large trackhoe excavator, as well as Cat 320 and Cat 315 are mainly earth moving machines.
- We win government contracts through participation in construction tenders. In this area it is very important to meet deadlines, it means that we need good equipment to perform works. To receive offers in private sector we place advertisements on industry specific websites.
- It is very convenient for us to purchase Caterpillar equipment from Borusan Kazakhstan using Cat Financial instrument for leasing of special machinery. I used it to purchase my machines. This is a well-tuned system that does not cause any unnecessary troubles. For this transaction we provided necessary documents, our financial position was stable, and the procedure was completed quickly and easily.
- Special machinery is in high demand in Kazakhstan today. If you take your business seriously you need reliable equipment. Any self-respecting businessman has at least one or two Cat machines in the fleet.
- These machines may be more expensive as compared to similar equipment, but they prove themselves in operation. And if you purchase them using Cat Financial credit facility the process is much easier. Moreover, taking into account the fact that in 2020 tax exemptions were introduced for small and medium business enterprises in our country this business becomes even more profitable.
- Of course, like in any business entrepreneurs may face various problems. We also have some problems. But we haven’t had any problems with this equipment so far”.
Bazis K LLP’s activities are connected with construction of buildings and roads. Parkhat Karibayevich Atambayev — director of the company says that any Cat construction equipment in the fleet of any construction company demonstrates such company’s status and adds credibility. You must have reliable equipment from a reputable manufacturer to sign independent-work contract on favorable terms and the more so to win government contracts.
- “We have achieved success in our business with Cat special machinery, — the Director of Bazis K says — It is undoubtedly reliable equipment. I purchased it 10 years ago. And repair was required for the first time in this year - 2019.
- This equipment may be expensive but in my business I always insist on use of these machines. We tried to work with other brands, we saw the difference and do not use them any more. We are satisfied completely with the service provided by the supplier in Kazakhstan. So the equipment is worth its cost.
- I recommend to purchase equipment rather than to take on lease where possible. This equipment always proves itself and there is ever growing demand for it in the market.
- As per my calculations 35 millions invested in one unit will be returned in three years”.
Quite well-known Individual Enterprise Elvira also started its business with purchase of one Cat 428 backhoe loader from Borusan Kazakhstan company. The owner operated this machine by himself. After some time the company purchased the next model of the same loader. Then they purchased additionally two units, then three units, and three units were leased.
As a result of their proactive attitude, goal commitment and high motivation little known ordinary individual enterprise became a successful and profitable company. According to the company’s management they are currently planning to purchase additionally 12 Cat excavators of different models.
As of today there are 12 Cat excavators of different models in their fleet: from 428 to 430.
In the next second part we will list 5 main advantages of doing business on special machinery.