When I first started in the garbage business back in 1990 with my Dad, our first new truck we bought cost $88,000. It had no AC, was a stick shift, with cable controls you had to pull with both hands to make anything work. I remember going to the bank to sign the note to finance this new investment. “What is this personal guarantee?” I asked our banker. I quickly learned it meant if the business didn’t make the payments they would take my house, my car, my children and wife and anything else I personally owned to cover the debt. I was 27 years old and began to realize we had no other choice but to make this business work.
This is when I learned what having “skin in the game” meant. The garbage business is a capital intensive business. The equipment you need cost a lot. Today we took delivery of a new front loader. The same kind we bought back in 1990. But today that same truck cost $295,000! I imagine that in my garbage career I have signed 50 personal guarantees for over 25 million dollars. That same personal guarantee is required by the bank today.
So you can see why the people that are entrepreneurs and borrow money from the bank and promise to pay the bank back are extremely motivated to keep their customers happy. Without our great customers, we would end up homeless. Every day that I get up and go to work, I never forget this very important fact.
So we want to take this time to say thanks to all our great customers at AllGreen for keeping shelter over our heads. We plan to continue to provide you with great service and to continue to improve our fleet. I’m scared to think what my last garbage truck I ever buy will cost.