Purchasing a Trailer
For
Finer Details Construction
Prepared for
James T.
Company Owner
Prepared by
Raji Dhaliwal
Capilano University
Instructor: Bill Van Luven
Communications 220-01
February 18, 2011
Table of Contents
Letter of Transmittal............................………………......3
Introduction.......................................…………………....4
Purchasing a Trailer Q & A ……….....................……… 4 - 5
Conclusion………………………………………….….... 5
Sources Cited…………………………….….....................6
List of Appendices......................................….……….......6
Appendix A – Photo of the Trailer………………………..7
Appendix B – Budget…………………………………….7
Appendix C – Report Topic Memo……………………….8
Appendix D – Oral Presentation…………………………..9
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Letter of Transmittal
Raji Dhaliwal
Student, Capilano U
3556 Calder Avenue
North Vancouver, BC
Canada
V7N 3R9
James T.
Owner
718-333 Brooksbank Avenue
North Vancouver, BC
V7J 3V8
February 18, 2011
RE: Purchasing a trailer
Dear James Troutman.
The following report outlines recommendations to purchase a 6x12 all purpose enclosed trailer.
I submit the attached report for your consideration. The purpose of this report is to persuade the
owner of Finer Details Construction, James Troutman to consider purchasing a trailer for his
company. I was able to gather information for my report by conducting an interview with James.
All Parts Trailer Sales, Standard building Supplies, and Orange Bins provided estimates that
enabled this report to have up to date financial figures. I have also included a detailed budget
outlining the cost of implementing this upgrade.
I would like to take this time to point out the benefits that would be realized as a result of
implementing my plan to purchase a trailer:
-
It will be good to have when transporting and storing tools.
It will eliminate the cost of material deliveries because the company will be capable
to perform them.
It will eliminate the cost of renting a 10 yard construction bin because the trailer is an
equivalent size.
The company logo can be advertised on the trailer
If you are interested in implementing this plan, I would recommend that that you purchase a
trailer by the end of March because April through August the residential construction industry
can get very busy.
Thank you for taking the time to consider this recommendation.
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Introduction
Purchasing a trailer is a fairly expensive investment so most owners would need some
convincing before they buy one. Results from my interview with James Troutman identify many
benefits that a trailer would bring to his company. There are also a few challenges that I have
identified, but there is a solution to all of them. I have created this report to prove that Finer
Details Construction can significantly benefit from the addition of an all purpose enclosed trailer.
Purchasing a Trailer Q and A
What is the status quo?
James currently has five employees and he uses his personal truck to perform all work related
tasks. He drives a 2009 Ford F-150 which requires him to make multiple trips to move large
amounts of tools and materials. Finer Details Construction performs all kinds of residential
renovations so his garage is used to store a wide variety of tools.
In financial terms, what are the benefits?
James will be able to earn his money back from this investment by eliminating the costs of
material deliveries and construction bin rentals. Construction bin rentals cost $350 and material
deliveries cost $100 each time. On average James needs to pay for 5 material deliveries and rents
6 construction bins per year. Therefore, owning a trailer would save him approximately $2600
per year.
Who else has tried this?
Many contractors who are in charge of completing multiple jobs at the same time own a
company trailer. Also companies that have 5 or more employees usually consider this because
they often perform large jobs that require a lot of tools and materials.
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How do the benefits of purchasing a trailer outweigh the challenges?
Challenges
The trailer would sometimes need to be parked
in his driveway, which might be an
inconvenience.
His truck will need to be serviced more
frequently because it will be used to haul a
trailer
You will sometimes need to get permission
from customers to park the trailer in their
driveway
An enclosed trailer will limit the height of
objects that can be stored inside
Solutions
If he didn’t have the trailer his garage would
always be full of tools
To minimize the amount of additional hauling
you should only tow the trailer when it is
needed.
It will enable your company to complete jobs
more efficiently because employees will have a
wide variety of tools at all times
An enclosed trailer will ensure that everything
inside it will not be damaged due to bad
weather.
Why hasn’t this been done before?
In the past Finer Details Construction would do many commercial jobs and in that case the
company would always be given a lock up room on site where they could store all the tools that
they wanted. Also, on commercial jobs the superintendant arranges for private companies to haul
away waste, therefore James would not be responsible for hauling away any wasted material.
Now the majority of the jobs are residential so it is the company’s responsibility to store tools
and equipment in an appropriate and safe place. Also they need to keep their jobsites clean to
maintain a professional image.
Conclusion
In brief, I believe this purchase will make your companies weekly operations function easier and
more efficiently. In financial terms it is a very smart purchase to make because after owning it
for 2 years the trailer will have earned back all its initial cost. You would be able to get a lot
more than 2 years use out of a trailer so buying one could potentially save you a lot of money in
the long run.
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Sources Cited
http://www.trailersales.net/trailer/new/-6x12%20Enclosed%20Cargo%20Trailer:/2011-6x12+Enclosed+Cargo+Trailer:-HAULMARK+TRANSPORTc48950fa404638d30197eb84c9f56d5c.htm
6x12 Enclosed Cargo Trailer, www.trailersales.net, n.p., n.d.
http://www.orangebins.com/custom/freequote
Free Dumpster Rental Quotes, www.orangebins.com, CMS Intelligence, 2011.
http://www.homedepot.ca/webapp/wcs/stores/servlet/SearchView?No=48&D=Master%20Lock
&Ntt=Master%20Lock&Dx=mode+matchallpartial&Ntk=level1&langId=15&storeId=10051&Ntx=mode+matchallpartial&N=0&catalogId=10051&Nty=1&s=true
Master Lock, www.Homedepot.ca, Homer TLC Inc. 2011.
http://www.standardbuildingsupplies.ca/pages/Shipping-%26-Delivery.html
Shipping & Delivery, www.standardbuildingsupplies.ca, n.p., 2011.
Appendices:
Appendix A: Photo of the Trailer
Appendix B: Budget
Appendix C: Report Topic Memo
Appendix D: Oral Presentation
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Appendix A: Photo of the Trailer
Appendix B: Budget
Item
1.
2.
3.
4.
Cost
6x12 Trailer
Master Lock
Logo Advertisement on Trailer
Additional vehicle maintenance per year
$3493
$15
$200
$450
Total Budget = $4158
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Appendix C: Report Topic Memo
Memo
Date: February 6, 2011
To: Bill Van Luven
From: Raji Dhaliwal
RE: Business Report Assignment
Overview
I have chosen topic option number one for this assignment. I worked in the construction industry
for three years before I enrolled into the business program at Capilano University. Finer Details
Construction was the company that I enjoyed working for the most and I still keep in contact
with the owner, James Troutman. I think it would be very beneficial for James to purchase an all
purpose enclosed trailer for his company. Every year Finer Details Construction does many
residential renovations, so having a trailer would enable the company to function a lot better.
Benefits
A trailer would improve many different job tasks such as getting materials and tools to job sites,
as well as haul away any waste. These reasons alone would eliminate the cost of material
deliveries and renting construction bins. The company would also have the option of putting
advertisements on the trailer to help attract new customers.
Challenges
There are a few challenges that standout when deciding on purchasing the trailer for the
company. If James were to purchase the trailer he would have to keep it parked in his driveway,
which might be an inconvenience. Also vehicles brakes will wear out faster a lot faster when it is
hauling a trailer than if it wasn’t. This means that there will be an increase in maintenance for his
truck because it will be used for more heavy duty work.
Sources of Information
I will research the internet to determine the amount it will cost to purchase a trailer. I intend on
gathering information by interviewing James Troutman to discover if this plan could be carried
out. Then I will be able to determine if James will benefit from purchasing a trailer.
Costs
I have not yet determined the cost of implementing this idea. However, I would estimate that
total costs will likely be in between 4000 – 8000 dollars. Presently, the total costs are difficult to
predict because I have not yet determined the exact size of trailer that will be purchased.
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Appendix D: Oral Presentation
Oral Presentation
Raji Dhaliwal
I have chosen topic option number one for this assignment. I worked in the construction
industry for three years before I enrolled into the business program at Capilano University. Finer
Details Construction was the company that I enjoyed working for the most and I still keep in
contact with the owner, James Troutman. I think it would be very beneficial for James to
purchase an all purpose enclosed trailer for his company. Every year Finer Details Construction
does many residential renovations, so having a trailer would enable the company to function a lot
better. A trailer would improve many different job tasks such as getting materials and tools to job
sites, as well as haul away any waste. These reasons alone would eliminate the cost of material
deliveries and renting construction bins. I plan on meeting with James and discussing details
about his company in order for me to create a report proving that a trailer would be a very
beneficial purchase.
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