|
|
Maintenance.
Equipment rented on a day-to-day basis includes full maintenance.
The user needs no repair shop, no spare parts supply, no mechanics,
and no parts supply inventory or maintenance records.
Breakdown.
Costs related to breakdowns of owned equipment are not applicable
to rented equipment. When rented equipment breaks down, it is
replaced by the equipment
rental business at no cost to the user. Time loss on breakdown
of owned equipment as well as the cost of repairs must be considered.
Warehousing.
Warehousing facilities are seldom needed for rental equipment.
Renting makes it possible for contractors to operate with less
overhead.
Mobility.
Equipment rental offers the contractor or customer mobility
that does not exist with owned equipment. A contractor can bid
on a job several hundred miles away based on renting equipment
needed near the job site. Availability and convenience have
become one of the strongest arguments against ownership.
Cost Control.
Better cost control is possible with rented equipment. Knowing
the true costs of owned equipment is difficult. Rented equipment
offers one accountable cost figure, that shown on the rental
invoice.
Inventory Control.
Another advantage in renting is better inventory control.
Contractors have less inventory loss due to theft when equipment
is rented. The presence of continuous billing on any rented
item tends to establish accountability for that item. Equipment
signed for at an equipment rental business which must ultimately
be returned is watched with sharper eyes.
Disposal Costs.
It costs money to sell used or obsolete equipment. Preparing
equipment for resale, advertising and selling time are cost
factors of ownership.
Obsolescence.
Day-to-day renting eliminates obsolescence. Ownership risks
being handicapped with slow, unwieldy equipment. An equipment
rental business provides the
latest types and models of equipment.
Correct Equipment for the Job.
Ownership forces another kind of inefficiency through use
of the wrong size or type of equipment for a given job, even
though the equipment is not obsolete. This can mean additional,
though hidden, costs. Rental insures the correct equipment
for the job.
Minimum Equipment for the Job.
Equipment ownership becomes particularly expensive when the
equipment is idle. When ownership of basic equipment is combined
with rental; as needed, idle time is minimized.
Personal Property Taxes and Licenses.
There are no personal property taxes or license costs for
rented equipment. Ownership incurs these substantial costs.
Conservation of Capital.
Renting conserves and frees capital for other, potentially
more profitable uses.
|
