You can Save Hundreds of Dollars by Renting Sewer Repair Equipment Instead of Buying
When you are in trenchless sewer repair and installation business, you know that your equipment needs can vary from one job to the next. Having the right equipment for each job can be quite costly, but without the correct equipment, you risk not being able to adequately complete the job at hand. Renting equipment instead of buying it can decrease your costs while enabling you to perform work that you wouldn’t otherwise be able to do. This means your costs decrease and your profits increase!
There are several different ways that you will find your company can save money by renting equipment instead of sinking money into items that your customers’ jobs call for only occasionally.
Specialized equipment that is needed only for a short period of time.
No financial commitments that are ongoing, regardless of the use of the trenchless equipment.
The rental costs can be passed to your customer, or kept strictly as a business expense.
There are no maintenance expenses when you rent.
If you find that your company is using the same type of equipment or system over and over again on different jobs, you’ll know that investing in that type of equipment won’t be a waste of your capital. At other times, you may need specialized equipment for a short period of time. A project might run for several months, or only a few hours. Renting equipment that is not used regularly can help you meet your customers’ needs when you win bids or are hired for projects that require specialized equipment.
Another way in which renting needed equipment, instead of buying it, will save you hundreds of dollars is through the savings gained by not having to meet the financing requirements of buying the equipment. While rentals will often require an additional deposit, this is typically returned when the equipment is taken back to the rental facility. Occasional rental costs are much less expensive than what any monthly payments will be on various pieces of equipment.
If your accounts department finds it beneficial, rental costs can be passed onto the customers’ invoice, or these fees can be placed on the ledger as a business expense. If they are passed to the customer, just make sure there are pro-rated fees if the equipment is used for more than one customer during the rental period, so there is no double invoicing. Likewise, it’s important to make sure that expenses aren’t listed twice (or more) on tax-related documents for the same rental payments made to the rental company.
If you rent larger pieces of equipment, you won’t need to maintain them, cutting an expense from your debits sheet. When you rent, the company you’re renting from will perform all need servicing and maintenance for you. The same is true of painting, cleaning, and replacing worn out parts.
Overall, renting equipment is highly beneficial to any company, regardless of your size. Gaining the ability to perform additional work brings in extra profits, while at the same time decreasing costs monthly, and eliminating maintenance costs. Renting your equipment will also make sure that you have only what you need, which also reduces the risk of vandalism or theft of idle equipment. Training, when needed, should always be provided to your technicians, ensuring they can use everything rented according to standard protocols.