| 1.
Minimum Inventory
Ownership
can be very expensive when equipment is idle. Combining
ownership of basic equipment with rental equipment as needed
will minimize idle time. |
2.
Right Equipment for the Job
Eliminate
the hidden costs of inefficiency due to use of wrong size or
type of equipment , and the maintenance and repair incurred.
Rental equipment ensures the right equipment for the job. |
| 3.
Warehousing Use
of rental equipment eliminates the need for large storage
areas/buildings, thus, overhead in your cost of doing business
is minimized. |
4.
Breakdowns Virtually
all equipment is subject to occasional breakdowns. However, when
rented equipment breaks down, idle time is minimized through
replacement by the Rental Company, and repair costs are
eliminated. |
| 5. Maintenance
Rented
equipment includes full maintenance, no repair shop, no spare
parts inventory, no mechanics, no added maintenance payroll or
maintenance record keeping |
6.
Equipment Obsolescence
Ownership
of equipment involves the risk of rising wage costs and slower
job completion time due to owning worn, obsolete models when
new, better, faster models are available from our Rental
Company. |
| 7.
Disposal Costs
Preparing
used, obsolete equipment for resale, advertising and selling
time are factors of ownership that do not occur in renting. |
8.
Cost Control Knowing
the true costs of owned equipment is difficult. Rented equipment
offers you just one accountable cost figure, the rental invoice
cost. |
| 9.
Inventory Control
The
presence of continuous billing on rented equipment establishes
personal accountability. Inventory loss due to pilferage is
minimized. |
10.
Taxes / Licenses
Personal
property taxes and license costs are eliminated on rented
equipment. |
| 11.
Conservation of Capital
Renting
construction equipment frees your capital for other potentially
more profitable uses. |
12.
Increase in Borrowing Capacity
Contractors
who rent instead of purchase find borrowing easier with better
ratio of assets to liabilities since equipment does not appear
as a liability on the balance sheet. The normal line of bank
credit is not disturbed, a most important asset in securing
bonds for construction work. |
