HOW TO DECIDE WHETHER TO RENT OR OWN CONCRETE EQUIPMENT
While the renting vs. owning debate has been around, this post includes some considerations and a modern pricing comparison to help you decide.
Did you have a profitable year? Are you renting concrete equipment more than once or twice a year and plan to stay in business more than a year or two? Consider concrete and masonry equipment ownership through as part of your long-game strategy, and keep in mind that financing options are available.
When it comes to sustaining growth, most small business owners understand how important it is to re-invest a portion of profit. When sales are down, liens are being pursued or other unanticipated expenses are going on around you, investing in your long-term success seems impossible.
However, when the construction market and the concrete contracting business has been up as both are – and you have the cash available – it’s the perfect time to set aside some to invest in the future of your business, such as marketing, staff and equipment.
Before we get into the financial advantages of concrete and masonry equipment ownership (and how to do it affordably), do you work concrete jobs for the government, or want to?
If you do already provide concrete drilling, concrete cutting, repair, installation or other masonry work for the government, then you know that those jobs have more stringent compaction parameters and other tougher requirements than the average job.
A less-trained novice worker that you’re supervising might not be able to get the proper amount of compaction or other precision demand of the job with unfamiliar rental equipment.
This is particularly a big deal when it comes to government, but in all cases improper settings, use or performance of equipment and tools can result in costly callbacks and loss of future business.
You want to set yourself up for success. With that intent, you want the best possible equipment and technology that you can afford. (Tip: if you lack the funds to purchase equipment outright, consider finance options.)
Another advantage of buying is getting exactly what you need for your particular work.
For example, some contractors specialize in small jobs. Few rental shops are going to have a paver that can just do 2-foot sidewalks. Also, when good weather moves in and everyone rushes to rent the equipment, there’s a good chance of the shop being out and you spending the day chasing the tool for availability.
There are also the obvious benefits of the equipment always being left on your personal settings and you being familiar with it. Let’s face it: our tools and equipment are extensions of us after awhile. The day just seems to go that much smoother when you’re working with concrete and masonry equipment that’s already become a part of you.
HOW OWNERSHIP PAYS OFF FINANCIALLY
Let’s say you have a project requiring a plate compactor with a minimum of 3400 lbs. of impact force. If you got to one of the largest construction rental equipment companies in the world – which should have some of the lowest rates – it costs $335 for the week or $834 for the month.
If you have two or three projects a month, it only makes sense to do a monthly rental. With just three months like that out of the 12 in a year, it’s going to cost you $2,502.00. To purchase a compactor click here with that compression force from acecutting.com costs $2,359.00 and tax.
So for the average, steadily-employed contractor or concrete contracting company, it’s going to cost LESS to own than your cost of renting the same (well, lower quality) equipment for that year!
In one year like the sample above the equipment has more than paid for itself. In just a couple years of business, the plate compactor will have not only paid for itself; with each year the concrete equipment is producing profit. With a fourth month of work, which most have, that’s even more profit you start making after the first year.
Keep in mind that, again, this financial benefit is in addition to benefits of having superior concrete equipment with which to work. On top of that, it’ll always be at the setting and condition that you last left it, not some other contractor, and you know it inside and out.
Owning concrete equipment – at least through acecutting.com – is often less expensive than renting within even just the first year. You also get the benefit of reliability, accessibility and more profit gained with each use.