Owning a construction company can sometimes make you feel as though have the weight of the world on your shoulders. One way to reduce the burden of your role is to ensure that your business is as profitable as possible. Of course, that means you must determine if equipment rental can save you money in comparison to purchasing equipment.
Nervous to Rent? Don't Be
If you are new to the construction industry, you are likely apprehensive about the idea of renting equipment. After all, is it really a better choice? Can it save you money? One thing that is certain is that heavy equipment rental gives you access to the newest technologies, which gives you a competitive edge.
When you purchase equipment, you may look to save as much money as possible, which means buying older-model equipment that lacks technological sophistication. Therefore, renting assists you in making sure you can offer your potential customers some of the best service around.
Putting Money in Your Pocket
Running a construction company means keeping yourself above the red line. If you are losing money rather than making money, your business will eventually sink. Heavy equipment rental helps put money back in your pocket. For instance, you do not have to worry about paying to store your equipment when you rent rather than own.
Purchasing equipment can cost several hundred thousand dollars. For instance, a new excavator may cost anywhere between $100,000 and $500,000, which is no small fee by any means. Spending a hundred thousand or more on an excavator is particularly harmful if it is not something you will use frequently.
Imagine spending far too much on a piece of equipment that you only use a few times a year at best. If you rent, however, you only spend money when you need a piece of equipment, which can save you several hundred thousand dollars.
Another costly piece of equipment is a skid steer loader, which can cost between $12,000 and $60,000. If you do the math, you would quickly find that just two pieces of equipment could have you spending anywhere from $112,000 to $560,000. Construction companies often need several pieces of equipment, so your costs could easily climb up to a million or more.
When you rent equipment, you typically pay a monthly fee. Monthly fees vary, but you can generally rent equipment for a fraction of the purchase cost. You can also defer all your maintenance issues to the company that provides you with the rental equipment, meaning you do not have to shell out additional funds for repair or replacement.
Try It Before You Buy It
If you are still not convinced that renting is better than purchasing, consider the fact that you can try it before you buy it. When you purchase a car, you usually want to test drive it before you sign any paperwork. Think of equipment rental the same way.
Rather than jumping on the purchase of heavy equipment, you can try it out to see if it suits your construction business. You and your crew can decide if it is something you can easily use or if you need to choose something else.
An expert can help you figure out which equipment you should rent based on the needs of your construction business. Many rental companies also offer training so you and your crew can learn how to use the equipment properly, which is especially useful for anyone who is new to the industry.
Keep in mind that you will need to have someone capable and licensed to use the equipment. A professional can help you figure out what licenses and paperwork you must have to rent the equipment you need for your business.
Contact a company that offers heavy-duty equipment rental services to learn more.