Renting vs Buying
It can be difficult to predict the future and determine what is going to be best for your needs in the long run. There are a few basic things to look at which will help guide you in making the right financial decision for what is right for you personally or your business.
Frequency – How often will you need this item, what is the likelihood the usage could change in the future?
Urgency – When you need this item is it for something urgent or can usage be planned and therefore group projects together.
Versatility – Can this equipment do multiple jobs; are there different options that you might want down the road?
Availability – Is this item even available in your area to rent? It might answer your question real quick if you can’t even rent it.
Maintenance – Do you have someone to maintain/repair the equipment, what are the typical repair costs; could there be problems if the item sat dormant for the winter?
New Business – Is there additional business you could do if you had this new equipment? Are you missing opportunity on current jobs where you refer business to others?
Technology – How quickly does the technology change? In 2-4 years will something better be available and you will need to upgrade?
Using Rentals to Grow Your Business
Renting is a great way to expand your business without the costs of additional equipment. For instance if a plumber who owns his own business wants to do pipe and drain inspections he might look at adding a Ridgid SeeSnake for a cost of $4000-$10,000. Then the risk is the equipment might go unused for weeks at a time until he builds that part of his business. On the other hand he could offer these services and simply rent a SeeSnake (from $125) as needed until the frequency goes up and buying becomes more attractive. Additionally rental equipment is a great way to supplement your current inventory. You may already own a mag drill but an upcoming job requires a few hundred holes drilled. It might make sense to rent a second or third drill for the job and speed up that step of the process. Often times this will more than pay for itself when consider man hours and project bottle necks.
Financing & Economic Slow Downs
During slower economic times it can become harder to secure financing and/or justify purchasing new equipment but the absolute worst thing you could do is turn away business. Shop your local rental house and know what inventory is available and what the rates are so you can speak confidently about your capabilities and build those rates right into any quotes. Also most places will offer discounts if you are planning to rent the tools several times per month.
March Rental Madness Deal – Ohio Power Tool
If you are near the Columbus, Ohio area and looking to rent any tools or equipment in the near future you might want to check out rental tools & equipment from Ohio Power Tool before the end of the month. Any rental items checked out before the last day of the month will be eligible for 25% back in free good which can be used on any new tools or accessories. At minimum it should cover the costs of any accessories you might need, such as saw blades or drill bits but the savings can add up quickly into free tools.
Outside Central Ohio you can still rent from Ohio Power Tool on a weekly and monthly basis if you would like to take advantage of the 25% in free goods offer. Shipping rates will apply so some items may not be cost effective but on weekly or monthly rental there are defiantly items which can be pretty reasonable to have shipped direct to your jobsite. If you have any questions call 800-242-4424 or email [email protected].
