Contractor Equipment Rental: Short Game vs. Long Game
Let’s talk about the short term vs. long-term benefits of contractor equipment rental
As a contractor, there are certain pieces of equipment that are more practical to lease than to own. Project-specific tools, oversized and vehicular equipment, and keeping up with the latest models can all be too expensive to buy equipment in-house. When a client’s project requires the equipment you typically lease, that is usually when you start planning the rental.
Very often, we see contractors who rent a large or specialty piece of equipment for one or two days at a time. But when a future project requires the same gear, they are back for another short-term rental.
This may seem efficient on the surface, but when you look at the total cost of each rental, efficiency suggests a longer view.
The Long and the Short Game in Contractor Equipment Rental
Let’s break down the elements of equipment rental cost.
- Equipment value and duration cost
- Service fee per rental
- Time spent picking up and dropping off
- Gas for transport
Expense Per Rental
When you rent equipment for one project at a time, you are initiating several small rentals throughout the season. This stacks up your per-rental expenses including service fee, equipment changing hands, plus time and gas spent on transport to and from the rental facility.
The rental facility also needs to sanitize, maintain, and prepare the equipment for a new renter between each short-term rental.
Leaving Duration Discounts on the Table
What many contractors don’t realize is that there are duration discounts. There are discounts for weekend, weekly, and monthly rentals. Renting for one or two days at a time may be less economic – over the season – than renting for a few weeks or even months to cover the entire span of projects that may require the gear.
Long-Game Contractor Equipment Rental
So what does the long game entail when it comes to equipment rental? You can look back at your own rental patterns and ahead to your scheduled projects to build a more complete plan for when to schedule leased equipment. Which pieces of equipment will you really only use for two days, and which do you often rent several times throughout the year?
Compare the opportunities for bulk discounts with the costs of individual rental. Consider whether you save money and/or gain more value with longer or better-timed equipment leasing schedules and contract durations.
Seasonal Specialties: Embrace the Opportunity of Long-Term Equipment Rental
Of course, once you have a specialty piece of equipment on-premise, why not turn it into an opportunity? You can cultivate even more client projects that use the equipment you are renting during the time it is stored in your workshop. If you have large landscaping tools for a season, run a campaign or special offer on major yard renovations. If you pick up supplies to repair storm damage, offer a storm damage package to new clients in the area.
Building a Long-Game Strategy with Your Equipment Rental Team
Here at Vandalia Rental, we want to help you find the most efficient way to lease the equipment you need. If you find yourself coming back for the same gear, we can build you a custom-tailored lease with discounts for multiple days, weeks, and months that you keep the equipment in use. If you’re not sure where the balancing point is between one-day rentals and planning ahead for future projects, we’ll do the math and find exactly the equipment rental lease you need to complete the season.
Long-game strategy is all about balancing finance, planning, and opportunity. Let us help you plan for the long-game with this season’s contractor equipment rental. Contact us today to consult on your contractor business’ equipment rental needs.