Buying brand new equipment might not be the best move for your business. Such an investment needs to pay off and that is never guaranteed.
Yes, you have a chance to reuse it numerous times, but the question is at what price?
On the other hand, renting is becoming more and more popular in the business world. It lets you obtain the finest pieces of machinery for just a fraction of the cost of purchasing it.
So, if you are considering having the privilege of being a proud owner, take a moment and reevaluate.
Face value and beyond
When it comes to owning equipment, there are many hidden expenses that people tend to overlook.
Namely, it can bite off a big chunk of your budget, and not just due to the upfront costs. Equipment quickly becomes outdated or calls for expensive upgrades and maintenance.
Keeping up with the constant leaps and bounds that technology makes can cost an arm and a leg, and due to serious damage and wear and tear, the machinery becomes a real money sinkhole.
This suggests that you will never get the same price for it as the day you bought it. Buying top quality is a way to shield against depreciation and market fluctuation as well as repairs, but it is not an option for many small businesses.
On the other hand, buying used equipment saves money right off the bat, but in the long-term, it is a risky proposition. Holding the equipment that satisfies the highest demand might not even be practical and cost-effective most of the time.
For example, the peaks and valleys in demand can make it sit around collecting dust for the better part of the year. What is more, it requires sufficient capital, storage space, and paperwork.
You have to adhere to various regulations and procedures, which can be a fuss. Furthermore, the equipment needs to be well-protected in a suitable storage unit and there are usually transportation costs involved.
Renting, however, helps you avoid all this hassle and have perfectly tuned equipment delivered at the site.
No boiling the ocean
Indeed, renting the equipment for as long as you need it frees you of worries, risks, and additional expenses piling up on top of each other.
It does not represent a balance sheet liability like purchasing. In case you are renting for a longer period of time, hiring companies may provide routine inspections for free.
Additionally, some of them offer advice to companies utilizing their machines as well as staff for hire. These services cut the costs needed to put the equipment to good use and keep it running like clockwork.
Based on your specific situation, renting could have an even stronger case. There may be some piece of equipment you need just once, such as an electric scissor lift.
It also does not make much financial sense to purchase something you’ll use once in a blue moon or for a short-term project. Besides, buying specialized equipment is not overly viable from an economic standpoint.
Pieces like elevated work platforms can become outdated in a matter of months. Rental companies are at least offering latest models that work like a charm.
Finally, note that hiring equipment is a nice way to test it. This means you can later make an educated purchasing decision if need be and perhaps capitalize on special buying and leasing options.
So, despite all the benefits of renting we mentioned above, do not completely rule out buying. Just bear in mind that it is not always the first and best option for your business. Carry out a research and shop around to find the best deals. Weigh your options carefully before taking the plunge.
The best of both worlds
The market for renting equipment has increased in recent years and hiring is usually your best option. You can steer away from unpleasant upfront costs and extra fees associated with the long-term commitment.
At the end of the day, you will still benefit from it like it is your own. So, get all your money’s worth without having to worry about repairs, maintenance, resale value, transportation, etc.
Make the most of the tools you need for the trade and mitigate the impact on your finances in the process.
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