Buy Equipment. Reduced after-job disposal. What do you do with purchased equipment that is not needed after a job is complete? No obsolete equipment. Accurate cost control. Right tool for the job. Well-maintained and ready to use. No breakdown problems. Minimal equipment required. No storage costs.
1. Maintenance – Equipment rented on a day to day basis includes full maintenance. The user of such equipment needs no repair shop, no spare parts supply, no mechanics, and no parts supply inventory or maintenance records for it.
2. Breakdown – Without exception, all equipment is subject to occasional breakdown in use. When rented equipment breaks down, it is immediately replaced or repaired by A.V. Equipment Rental, Inc. at no cost to the user. Time losses on breakdown of owned equipment as well as the cost of the repairs themselves must be considered.
3. Warehousing – Storage facilities are seldom needed for rental equipment. Some contractors operate successful businesses with little more that the cost of a telephone, and a pager. They use a reliable rental yard to take care of
4. Cost Control – Better cost control is possible with rented equipment. Know the exact cost of owned equipment is difficult the determine. Acquisition, repair, maintenance, transportation and facility expense are just some of the variables. Rented equipment offers the used just one accurate accountable cost figure – that shown on the rental invoice.
5. Inventory Control – Contractors in particular often find that they have less inventory loss due to pilferage when equipment is rented rather than owned. There is a logical reason for this. The presence of a continuous billing on a rental item or the occasional friendly call from your rental yard inquiring as to the status of your rental tends to establish accountability for that item. The contractor who owns a great deal of miscellaneous equipment has a difficult time keeping track of or establishing personal responsibility for any of it Tools signed for at an equipment rental yard tools which are closely monitored and must ultimately be returned – seem to somehow be watched with sharper eyes.
6. Disposal Costs – It costs money to sell any type of used or obsolete equipment. Preparing (or repairing) the equipment for resale, advertising and selling time are cost factors of ownership that do not occur with rental equipment.
7. Obsolescence – Faster and better equipment is constantly appearing, as manufactures battle for a market keenly aware of rising wage costs. Ownership involves the risk of being handicapped with equipment which is slower and less efficient compared to newer models. A.V. Equipment Rental, Inc. is constantly upgrading its fleet, keeping the latest types and models of equipment available.
8. Correct Equipment For The Job – Ownership often forces another type of inefficiency through the use of the wrong size or type of equipment for the job. The “we’ll make it work” mentality can led to poor production, lost time, increased costs and in some cases can be a liability factor.
9. Minimum Equipment For The Job – Equipment ownership becomes particularly onerous when such equipment must lie idle, as owned equipment often does from time to time. The contractor who combines the ownership of basic equipment with quality rental equipment as needed minimizes equipment idle time.
10. Business / Personal Property Taxes and Licenses – There are no personal or business property taxes or license cost to the user of rented equipment. On owned equipment these are substantial costs, which must be added to the cost of owning rather than renting.
11. Conservation Of Capital – Renting frees up capital for other, potentially more profitable uses other than being tied
12. Increases Borrowing Capacity – The equipment user who rents rather than buys generally finds borrowing easier because he has a better ratio of assets to liabilities, as the equipment does not appear as a liability on his balance sheet. This means that his normal line of bank credit is not disturbed. Contractors have found this important in securing the bonds necessary for construction work.