# Money spent on tools



## 18withtools (Jan 13, 2013)

I was wondering what is a rough percentage that you re invest in your tools and equitment.

Personally I was just going over some numbers and relized I put around 70 percent of my profit from sidejobs into new tools. That's a lot, I should probably put more away for the future and when I buy a place of my own. The reason Ime able to put so much into tools is cause I am living at home(just turned 18) and all I have is my phone to pay.

So what's more realistic?


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## CrpntrFrk (Oct 25, 2008)

When your first starting out your going to put a lot of cash into tools. Spending money on tools will never go away it will just decrease.

There is always going to be broken tools, then a new job that requires a different type of tool, then new tools that just came out, then back up tools, then tools you use only on certain jobs, and on, and on.

The thing to try to do is when you need another tool for an upcoming job try to incorporate the price of that tool into the price. That way the customer is kinda paying for the tool for you.

You are doing what I did. When I was living at home I tried to buy as much tools as I could. I say it's a wise purchase whether you stay in the business or not. At least you will have your own tools to complete tasks on your home if you need to.


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## Dustincoc (Sep 14, 2011)

I say spend as much as you can on tools. They will only make you money. Of course I have tools sitting in the garage that I haven't used in 5 years but if I need them I have them and buying them 5 years ago, they cost me less then buying them now. 

Here's a couple other threads on this topic:
http://www.contractortalk.com/f40/what-percent-do-you-spend-tools-89951/

http://www.contractortalk.com/f40/how-much-should-i-spending-tools-125974/


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## stombaugh85 (Jul 23, 2012)

Just going through my paperwork I dropped 31k in tools last year, granted 

18k for my skidsteer, 
5k gutter machine,
4k trailers, 
2500 for siding break,
reguar hand tools, saws, batteries and nailers about 1500

Most all my profit money goes to tools. Its mind blowing how much I've spent but I never feel bad for buying any tool. Its like buying a book. I told myself I will stop buying tools at some point but I think I'm just in denial. I just cant help myself! I only focus on one area now thou. It can get overwhelming if your deverse, the ammount of tools you need.


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## littlefred811 (Dec 16, 2012)

Hardwood Flooring Gear: Been doing it for about 15 years. Spent something like $3500 last year. 

Ditto on keeping them forever. You'll use them, and your kids will wonder what the hell you have them for.


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## TNTRenovate (Aug 19, 2010)

As much as you can and not get into too much trouble with the Mrs.


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## BlueRidgeGreen (Apr 21, 2012)

If you plan on doing this.....your tools ARE your future. Buy now, buy plenty, buy quality. 
Keep learning and buy a real nice place of your own.


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## kiteman (Apr 18, 2012)

stombaugh85 said:


> Just going through my paperwork I dropped 31k in tools last year, granted
> 
> 18k for my skidsteer,
> 5k gutter machine,
> ...


At least you didn't have to pay taxes on them. Well, sure, sales tax I guess.


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## kambrooks (Apr 24, 2012)

77% of profit... Accountant doing my taxes just "advised" me in my erroneous ways.

I see it as an investment in my future, obviously


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## Big Shoe (Jun 16, 2008)

I dropped a lot of money on tools my first couple yrs. on my own. 

I need to log an inventory and value of all of my stuff. So my wife knows.

I hit a yard sale a couple yrs ago where the husband died and his wife was giving all his tools away for next to nothing. The guy had every tool you could imagine. She did not have a clue. Very sad.


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## Pearce Services (Nov 21, 2005)

BlueRidgeGreen said:


> buy quality.
> .


(+1) 

for many reason!

an 18 year old showing up to work with his Homeowner grade tools is going to have a hard time convincing anyone that he is legit.


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## cabinetsnj (Jun 10, 2012)

Personally, I try to put as much of my profit as I can into my retirement investments. I don't want to have to work until I have 70.


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## cabinetsnj (Jun 10, 2012)

TNTSERVICES said:


> As much as you can and not get into too much trouble with the Mrs.


That is why you don't bother to tell the Mrs.


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## Texas Wax (Jan 16, 2012)

End of the month....
Roof over head-check
Food in fridge-Check
Utilities paid-Check
Gas for truck-Check
Insurance Paid-Check
IRS/Taxes Paid-Check
A couple bucks in Savings-Check

Cash in Hand- BUY TOOLS, maybe save $100 for a nice night out with the Mrs or potential significant other. That's an investment too.

Only time to feel 'odd' about buying tools is when your betting against future profit or taking taking away from your personal or family's needs.


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## Stephen H (Feb 18, 2011)

cabinetsnj said:


> Personally, I try to put as much of my profit as I can into my retirement investments. I don't want to have to work until I have 70.


 I agree.
too many tradesmen use "chick logic" when it comes to tools.
look in your wife's closet and see how many clothes she bought that she never wears( or shoes for that matter)- they buy just to buy.

A lot of guys buy tools the same way.

In hindsight, I was lucky , I think.
when I was starting out I just had some very basic tools-and some of that was just homeowner grade crud because it was what I could afford.

I also had 4 mouths to feed---so I have always viewed tools as just that-------tools--------a means to an end.

If I needed a tool for a particular project- I bought it---but I better really need it and it was tallied to that particular job.
I would advise the OP to concentrate on building Net Worth, not accumulating tools.

sure-there are some tools you are going to need--------- but on the other hand, tools are a depreciating asset and hard to turn back into cash

Money,on the other hand is very easy to turn into tools if you need to.

Stock market up well over 100% since 2009.

Stephen


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## black95gt (Nov 25, 2012)

stombaugh85 said:


> Just going through my paperwork I dropped 31k in tools last year, granted
> 
> 18k for my skidsteer,
> 5k gutter machine,
> ...


How often do you use that gutter machine? 

There is a guy in my area getting out of the business and wants to sell his enclosed 16' trailer, 5" new-tech gutter machine, a few coils of aluminum and some other equipment for $7500. There is another guy that has an E250 Cutaway Van with gutter machine, coils, 4 ladders, and other misc. equip for $10,500 obo. Both are essentially turn key. I dont really want to get into the gutter business, but it wouldnt take long for it to pay for itself and would save about $1,000 (not including my employees labor) in subing gutters out per new home construction. I dont think it would take long to drum up enough work to keep a 2-man crew going full time and would be nice to be able to pull them off to help with concrete when extra hands are needed. I really like the van idea as it only needs some insurance, some advertising and a couple of guys!


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## Stephen H (Feb 18, 2011)

black95gt said:


> How often do you use that gutter machine?
> 
> There is a guy in my area getting out of the business and wants to sell his enclosed 16' trailer, 5" new-tech gutter machine, a few coils of aluminum and some other equipment for $7500. There is another guy that has an E250 Cutaway Van with gutter machine, coils, 4 ladders, and other misc. equip for $10,500 obo. Both are essentially turn key. I dont really want to get into the gutter business, but it wouldnt take long for it to pay for itself and would save about $1,000 (not including my employees labor) in subing gutters out per new home construction. I dont think it would take long to drum up enough work to keep a 2-man crew going full time and would be nice to be able to pull them off to help with concrete when extra hands are needed. I really like the van idea as it only needs some insurance, some advertising and a couple of guys![/QUOTE
> 
> ...


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## Friend (Oct 30, 2010)

soon, very soon I will have enough tools.... I have been saying that to myself for twenty years. All I needed was a framing gun, oh and maybe an 18 ga, 16 ga, compressor combo, maybe a 23 ga. A roofing gun, siding gun, cap staple gun, little staple gun, lath staple gun, ramp set, 15 ga, oh wouldn't it be nice if I had a cordless gun or two... and a tico nailer. If the tool will make the job more efficient and I can meet my families needs and still buy it, I buy it.


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## black95gt (Nov 25, 2012)

Stephen H said:


> think that through very carefully.
> In my area, guys with gutter machines are a dime a dozen- it's highly competitive and low margin work- it may well take much longer to pay for that machine set up than you think. It's also a commodity product that is hard to charge a premium for quality work.
> stephen


The guy with the van sold his setup, so that is out. If anything, I would use it for just my own houses that I build. Once i get bigger and am building 5+ houses per year, it would be worth it in my opinion to have my own. Then if i could get a few jobs here and there, that would be nice too. My bigger issue would be having another big trailer sitting around taking up space.


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## Warren (Feb 19, 2005)

Not possible to spend "profit" on tools. They are expensed as either a consumable or they are depreciable assets. You could say that profit may have been larger with less tool purchases, but who wants that?


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## Oconomowoc (Oct 13, 2011)

Warren said:


> Not possible to spend "profit" on tools. They are expensed as either a consumable or they are depreciable assets. You could say that profit may have been larger with less tool purchases, but who wants that?


Not if it's investment.

CAPEX


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## hdavis (Feb 14, 2012)

Stephen H said:


> too many tradesmen use "chick logic" when it comes to tools.
> look in your wife's closet and see how many clothes she bought that she never wears( or shoes for that matter)- they buy just to buy.


Good thing she doesn't use guy logic, she'd be buying the clothes that will make her the most money.....


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## Stephen H (Feb 18, 2011)

hdavis said:


> Good thing she doesn't use guy logic, she'd be buying the clothes that will make her the most money.....


WTF----did you really effing just imply that? Seriously?
Stephen


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## hdavis (Feb 14, 2012)

You don't buy your tools that way???


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## black95gt (Nov 25, 2012)

Stephen H said:


> WTF----did you really effing just imply that? Seriously?
> Stephen


I am confused here. Did you misread or misinterpret something?


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## BlueRidgeGreen (Apr 21, 2012)

black95gt said:


> I am confused here. Did you misread or misinterpret something?


 I think he took it to the street corner. Can't imagine Davis did.


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## black95gt (Nov 25, 2012)

BlueRidgeGreen said:


> I think he took it to the street corner. Can't imagine Davis did.


aaah...I see it now :laughing: I guess i leave the perverted part of my mind elsewhere when i come to Contractor Talk :innocent:


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## pinwheel (Dec 7, 2009)

When I first started building my own business, I was working full time in a rental yard. I was doing sideline work & spending 110% of the money from the sideline work buying tools. Towards the end of my regular job, I was working nearly 80 hours week in, week out & making more than double on my own as I was working for someone else & was still investing all that money into building my tools/buildings/trailers ect. So when I made the break from working for someone else, I hit the ground running hard.

Today, I buy tools as needed to complete projects to make my work faster or better. I don't drool over tool catalogs, I look through them when I need a tool for a project. If I don't have a project to justify a tool purchase, I don't buy a new tool.


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## overanalyze (Dec 28, 2010)

You will spend a ton of money on tools thorough your whole career. We just did an inventory to update our insurance. We have well over $30,000 in tools. That doesn't include our brake, trailers, or equipment. That's a collection we started buying over 15 years ago.


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## tedanderson (May 19, 2010)

18withtools said:


> I was wondering what is a rough percentage that you re invest in your tools and equitment.


I can't say that I ever considered a percentage when buying tools. I just get what I need as needed and consider it as an incidental business expense. Whether it costs me $20 or $200 I figure that if buying the tool is the difference between getting the gig or not, it's worth it to me. 

The expense of my tool purchases fluctuates so much that it's difficult to really put a number on it. Sometimes I can go several months without having to buy anything.. not even so much as a drill bit. But then there are other months where it seems like should be holding a sign that says, "WILL WORK FOR TOOLS" because I'm barely breaking even.

But overall I'd rather break even on a job with a new tool than to go into debt getting one.


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## SSC (Feb 8, 2011)

I will buy what ever tool is needed to get a project done.
I will buy any tool that will pay for itself in increased production.

I will put serious thought into buying anything and try to get the most for the buck. It just makes business sense to me. Anybody especially new businesses can really do well buying second hand tools from a contractor liquidating their business. Most of us know how tight the budget can be in the first few years.


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## hdavis (Feb 14, 2012)

SSC said:


> I will buy what ever tool is needed to get a project done.
> I will buy any tool that will pay for itself in increased production.
> 
> I will put serious thought into buying anything and try to get the most for the buck. It just makes business sense to me. Anybody especially new businesses can really do well buying second hand tools from a contractor liquidating their business. Most of us know how tight the budget can be in the first few years.



Totally agree. Finding one of the older reliable tools for dirt can be a real bonus.


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## cabinetsnj (Jun 10, 2012)

hdavis said:


> Totally agree. Finding one of the older reliable tools for dirt can be a real bonus.


Buying used tools can save you a lot of money. You may want to visit some garage sales, etc.


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## Dirtywhiteboy (Oct 15, 2010)

E-Bay:clap:


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## cabinetsnj (Jun 10, 2012)

Personally, I like to hold the tools before I purchase them and have a good look at them. I am not that fond of purchasing tools on eBay.


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