This feature in Pumper reports noteworthy conversations that take place in Pumper Discussion, an email-based forum for industry professionals sponsored by COLE Publishing. Pumper Discussion provides for the exchange of information and ideas on septic and drainfield installation and maintenance, trucks and equipment, portable sanitation, chemicals and additives. To find out more about Pumper Discussion, or to subscribe, visit www.pumper.com.

Information and advice in Overheard Online is offered in good faith by industry professionals. However, readers should consult in depth with appropriate industry sources before applying such advice to a specific
business situation.

Question:

A local guy who pumps part time wants to sell. It sounds like he wants around $20,000 for everything. The pump truck is older, a 1989 Ford F-800 with a 3,000-gallon tank and a 7.8-liter, 240 hp Ford diesel engine, 6-speed transmission and a Jurop pump. In the last year he put all new drive tires on and did rear suspension work.

He has 460 customers. Would you pay that much? I don't think it's a bad deal and it would be a good way to get my foot in the door.

I'm in the trucking business now. I own a 2006 Mack CV713 tri-axle dump truck. But I always wanted to pump. I ran a vacuum truck for four years until I bought the dump truck. So pumping is not new to me. I would like maybe to grow it and then maybe one day put a tank on my Mack. There is a lot more money in pumping than in running a dump truck.

Answers:

If it's in decent shape cosmetically and mechanically it should be worth close to that by itself.

The truck alone is worth about that if it's in good running, operable condition. Factor in the customer list, the phone number, historical revenue/profit, any other ancillary equipment, and yes, it's well worth $20,000.

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At wholesale, that truck is probably worth about $10,000. But, if he has a good reputation with those 500 customers, it's an excellent way to get your foot in the door.

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Some old trucks run forever. Find out what he grosses, where he dumps, and what he pays to dump. Find out how many miles he drove last year. Estimate the truck will get 4 mpg, divide that by the mileage per year and multiply by $4 to estimate your fuel. Use what you pay for dump truck insurance to estimate the insurance cost. And just break it down to what it costs to run the truck. If you can't cover the expenses with profit and labor for the first six months to a year, walk away. And get a 5-year, no-
compete contract.

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Dumping fees are 1.2 cents per gallon for holding tanks, 1.8 cents for septage and 8.8 cents for grease. I already talked to my insurance man. It will be around $2,000 less per year than my dump truck. I looked at the truck and it is in a lot better shape than I expected.

I did find out the pump is a 360 cfm Jurop. I ran the numbers and it will work out nicely. One job he does pays $715 per month for 6,000 gallons. That should pay all my fixed costs. I should be in the septic business.

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Good luck and congratulations! Now, find an onsite association to join. Then participate. Our organization has lots of great people who are willing to help you with any issues that might come up. Several are more friends than competitors. It's very important to our industry to achieve and maintain a standard of professionalism. It takes people like you and me to do that! I'm happy for you!

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I agree with the professionalism; we need more of it in this industry. I will be joining www.psma.net. A lot of pumpers around my way
are members.

I'm happy with how it turned out. I got about $1,250 in paint and decals. Looks like a different truck. For the better.

I already ran into problems. I was doing my weekly holding tank job and I noticed the truck was taking forever to fill up. So I pulled the hose out and stuck my hand on the end. Very little vacuum. I could hear a small vacuum leak. So I let the vacuum build up and shut the truck down.

Then I pinpointed the leak. There was a hole in the back side of my secondary. It's a little smaller than a dime. So I got some duct tape out and put it over the hole. Worked like a champ. Got the job done. I guess I will run into problems like these with a 22-year-old truck.

So far I pumped 30 tanks, two of them commercial jobs that I go to every 7-10 days.