No matter what industry you are in, the marketplace continues to get more and more competitive. Every business needs to be constantly searching for ways to provide better service and do it more cost-effectively. It’s important to take any advantage that you can get. As long as it is legal! For an example, let’s take a look at something you might do if you are involved in the construction business. Some contractors will buy their own equipment to complete the jobs they are working on. Others prefer to go with equipment rental instead of purchasing the equipment. Why would they do that?
If you have multiple jobs going at once and need the same equipment for both — one of those jobs is going to be on hold. Or, you could team up with a trusted equipment rental company so you’ll have no problem getting your hands on the highest quality equipment when you need it.
Here’s a couple of additional reasons.
Flexibility
A doctor would tell you that each of their patients are unique. Medical history, blood type, diet, and many more factors are included in the way they treat a patient. An experienced construction contractor treats their jobs the same way — knowing that each job is unique. This means there are unique requirements to fulfill. This becomes much easier when the contractor is using rental equipment and has access to a large selection of tools. Then they aren’t tempted to use something that is not quite right for the specific job.
And even when contractors are prepared, things don’t always go like you expect. Equipment breaks down, weather issues happen, and there are emergencies. That can delay construction projects. When things come up, having the flexibility to access different types of equipment makes all the difference.
Repair Costs
You know what can cost a lot? The maintenance and repairs that are necessary to keep heavy equipment working — safely and efficiently. Construction projects cannot be taken lightly and that means sparing no expense to make sure the equipment is in top condition. These costs add up quickly when you are the owner and user of the equipment. Or, using rental equipment lets the contractor focus on the job at hand and the rental company take care of the equipment. Not only does this eliminate the cost of repair and maintenance — but it saves a TON of time too.
Disposal Costs
Equipment is only going to last for so long. Especially when a construction contractor is using on a regular basis. That means a contractor is likely going to spend a lot of time and effort working on resale and disposal of old equipment. And don’t forget about acquiring the new equipment to replace the old. In order to take care of all of this, there must be a dedicated plan to make sure the assets retain maximum value.
Using rental equipment companies means that they end up doing most of that kind of work. There’s no need to worry about marketing for resale. There’s no need to worry about preventative maintenance costs to retain equipment value. Contractors just need to worry about doing the job right.
Cash Flow
Cash flow is vital in any business. Using rental equipment means that there are no large capital investments restricting the cash flow for a contractor (or related expenses). Equipment repair and maintenance doesn’t diminish cash flow either. Freely flowing cash allows the business to be flexible in many ways and enables construction companies to take on more projects. It’s a win-win!
Using rental equipment helps with cash flow in another way too. This is an expense that can be used as a tax write-off so the business has more cash flow available for other needs. This might be the difference needed to hire more workers and take on more jobs. Or increase the marketing efforts and take on more jobs.
Storage Space
One thing to remember about heavy construction equipment is that it takes a lot of storage space. It needs to be stored for protection and organization. That adds up fast! So does the cost for buying or renting property to store all of this stuff. Then there is extra cost for insurance and security to make sure your equipment is protected.
On the other hand, renting equipment means the overhead costs are much much lower. Just pick up the equipment you need, do the job, and return the equipment. It’s a simple process to repeat.
Technology
When you choose to go with a rental equipment company, you have access to much more equipment. And the equipment that uses brand new technology. You aren’t stuck trying to make due with what you already own. In the last few years, there have been a bunch of upgrades in equipment and the technology they use to get jobs done. There is no reason to think that won’t continue. Continually upgrading equipment to keep up with technology gets expensive in a hurry which is why the smart contractors decide to use rental equipment.
Tips For Renting Equipment
If you are considering the use of rental equipment, there are some things you should know and do to prepare before renting that equipment. It really comes down to making a detailed plan, sticking to your budget, and keeping track of where you are in the process. These tips should get you going in the right direction.
Research
Included in your research should be the company you are going to get your rental equipment from. When you are comparing rental equipment companies, the main points you will want to look at are the price and the quality. But don’t forget to find out about things like deposits, delivery, pick-up times, and the following items.
- Add-ons
- Deposits
- Insurance
- Maintenance
Be On-Time
The process will be much easier if you can plan ahead. This way you will know whether the equipment you need is available and when it is available. As soon as you know what you need and when you will need it, you should schedule your equipment rental.
Ask Questions
When renting equipment, it is important that both the renter and the equipment rental service are on the same page with the agreement. Things like billing policy, late fees, equipment damage, and delivery are issues that can make the process easy when both sides know what is expected. Don’t walk away until you are confident about your understanding of the terms.
Have A Plan
Making sure that you know what you need to get done, how you need to get it done, and what you need to get it done is part of a successful plan. It makes a big difference when you know what you need to rent and how long you will need to have that equipment. Another major part of your plan needs to be the budget. How does renting the equipment fit into the budget? This may very well be the factor that leads to whatever decision you make.
