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How to make money from special machines

View of the work of powerful backhoe loaders, smart road equipment and other modern special machines is mesmerizing. And it expectedly arouses interest among active and hard-working people as to whether it is realistic to acquire such equipment and start making money from it

Part I. Personal Experience

The most active and interested ones will begin to study this issue in detail and will find easily examples of making money successfully with the help of technology. There are many such examples.

Supplier of special machines Borusan Kazakhstan Company acquired a wide range of business partners, whose experience of doing business with special machines is an illustrative example.

Having started with purchase of just one unit of Caterpillar® equipment they achieved good payback results and further developed their business by purchasing new special machines of this brand. For example, Individual Entrepreneur Elvira, Bazis K LLP, SMP-Kyzylorda LLP and other.

Honoured builder of the Republic of Kazakhstan – Director of SMP-Kyzylorda Temirkhan Malikovich Alimkulov told:

  • “I got backhoe loader Cat® 428 on credit for the first time in 2007. Then we established good business relations with equipment supplier Borusan Kazakhstan. There were no major faults in the machine for 5 years, we just changed oil and replaced filters. We did not spent significant amounts in this period. We recovered the cost of this backhoe loader within 2-3 years

  • In 2008 I visited Caterpillar Demonstration Center in Malaga, Spain, where I was invited specially for assessment. Capabilities of these machines and maintenance procedures were demonstrated to us.

  • After that I purchased several special machines Caterpillar

  • We currently have 7 Caterpillar machines in our fleet: one machine was used before, the remaining machines were purchased new. These machines demonstrate high quality and efficiency. Borusan Kazakhstan Company provides high quality maintenance and after sales services.

  • Our business is connected with construction. We use primarily excavation equipment. Backhoe loaders Cat 428 and Cat 422 are used as loaders and as small excavators. Cat 320 – large crawler-mountedexcavator, as well as Cat 320 and Cat 315 – are primarily excavation machines.

  • We sign government contracts in the sphere of construction through tender procedures. In this context it is especially important to meet deadlines. Therefore we need good equipment to perform works. To receive private orders were place advertisements on special industry-specific web-sites.

  • It is very convenient for us to purchase Caterpillar equipment from Borusan Kazakhstan using financial tool Cat Financial for special machines leasing. I used it when I purchased my machines. This tool works smoothly without any unnecessary troubles. We provided necessary documents for the procedure, our financial position was very stable and the procedure was completed fast and easily. Nowadays special machines are in great demand in Kazakhstan. But in order to engage in this business seriously it is necessary to have reliable equipment. Any self-respecting businessman has at least 1-2 Caterpillar special machines in the fleet.

  • These machines may be more expensive than analogues, but their price is justified. If you purchase them under Cat Financial leasing program, your task is much easier. Moreover, if small and medium enterprises in our country are exempted from taxation starting from 2020, this business will become much more profitable. Of course, businessman may face problems in any industry. We also have problems sometimes. But they are not connected with our equipment.”

Bazis K LLP is engaged in construction of buildings and roads. Parkhat Karibayevich Atambayev – the company’s Director believes that availability of Caterpillar construction equipment in the fleet of any construction company confirms such company’s credibility and adds prestige. In order to receive profitable orders, especially under government contracts, it is necessary to have quality and reliable equipment.

  • “Business with Caterpillar equipment became a success for us – says Director of Bazis K – This is reliable equipment undoubtedly. I purchased it 10 years ago. And I had to make some repair in 2019 only.

  • This equipment may be expensive, but I insist on giving preference to it in my business. We made attempts to use other brands, but we saw the difference and never used them again.

  • We are also absolutely satisfied with the services provided by the supplier company in Kazakhstan. So, the equipment’s price is justified. I recommend to purchase the equipment, rather than to lease, wherever possible. This equipment is worth the cost in any case, and demand for such equipment in the market is ever growing.

  • According to my calculations 35 million KZT invested in one unit of equipment will be recovered within 3 years.”

Quite well-known enterprise Individual Entrepreneur Elvira also started its business from purchase of one backhoe loader Cat 428 from Borusan Kazakhstan. Owner of the enterprise operated the machine himself. Some time later the company purchased other model of the same loader. Then two units and later three units were purchased and three units were leased. As a result of activities, goal commitment and strong motivation ordinary almost unknown enterprise became quite successful and profitable company.

According to the company’s management they are going to buy four units of equipment additionally.

There are 12 units of Caterpillar equipment of different models in the company’s fleet currently: from 428 to 430.

In the next Second Part there are specified 5 main advantages of doing business with special machines.