1. Minimum Equipment Inventory
Equipment ownership can be very expensive, especially when that equipment is idle, as owned equipment often is. By combining ownership of basic equipment with rental equipment as needed, idle time cost and equipment cost is minimized.
2. Right Equipment for the Job
Owning equipment can add two hidden but very real costs to your job. 1) Inefficiency due to the wrong size or type of equipment, and 2) additional hidden costs of maintenance and repair incurred by using your own equipment. Rental equipment ensures you the right equipment for the job.
3. Warehousing
Warehousing sites are seldom needed for rental equipment. Some contractors actually operate successful businesses with little more overhead than the cost of a telephone by having our rental company serve as their warehouse.
4. Breakdowns
Virtually all equipment is subject to occasional breakdown. However, when rented equipment breaks down, it can be quickly replaced at no cost to you. Time losses on breakdown of owned equipment are eliminated along with the cost of repairs.
5. Maintenance
Rented equipment includes full maintenance. You need no repair shop, no spare parts inventory, no mechanics, no added maintenance payroll or maintenance record keeping.
6. Equipment Obsolescence
Manufacturers are constantly trying to capture a bigger share of the market by designing new, better and faster equipment. Ownership involves the risk of rising wage costs and slower job completion time due to owning equipment that has become inefficient compared to newer models. We continually update our rental inventory to eliminate this problem.
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7. Disposal Costs
It costs money to sell any type of used or obsolete equipment. Preparing the equipment for resale, advertising and selling time are important cost factors that do not occur in renting.
8. Cost Control
Better cost control is possible with rented equipment. Knowing the true costs of owned equipment is difficult. Rented equipment offers you just one accountable cost figure … the cost shown on the rental invoice.
9. Inventory Control
You, as a rental customer will find you have less inventory loss due to pilferage when you rent equipment rather than purchase it. Although at first glance this may seem strange, there is a very logical reason for it. The presence of continuous billing on rented items tends to establish personal accountability for them. It is difficult to establish personal accountability on a large amount of owned miscellaneous equipment. On the other hand, equipment rented from us which must ultimately be returned somehow seems to get watched with sharper eyes.
10. Personal Property Taxes/Licenses
There are no personal property taxes or license costs for the user of rented equipment. These are substantial costs that must be added to the cost of owning rather than renting.
11. Conservation of Capital
Renting equipment rather than owning frees capital for other, potentially more profitable uses.
12. Increase in Borrowing Capacity
The customer who rents rather than buys generally finds borrowing easier because he has a better ratio of assets to liabilities since the equipment does not appear as a liability on his balance sheet. This means that the normal line of bank credit is not disturbed. This is most important in securing the bonds necessary for contracted work.
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