When you need equipment primarily for short, seasonal peak period use, renting is the logical answer. When all factors are considered, the true cost of purchased equipment is many times the initial cost. When in doubt study all of the costs of renting or buying —and be guided by what is the most profitable.
- Maintenance — Equipment rented on s day-to-day basis includes full maintenance. The user of such equipment needs no repair shop, no spare pars supply, no mechanics, and no parts supply inventory or maintenance records for it.
- Breakdown — Virtually all equipment is subject to occasional breakdown in use. When rented equipment breaks down, it is replaced by our Rental Company. Time losses on breakdown of owned equipment as well as the cost of the repairs themselves must be considered
- Warehousing — warehousing faculties are seldom needed for rental equipment. Some contractors operate successful construction businesses with little more overhead than the cost of a telephone answering service by having equipment rental yards serve as their warehouses.
- Cost Control — Better cost control is possible with rented equipment. Knowing the true costs of equipment owned is difficult. Rented equipment offers its user just one accountable cost figure —that shown on the rental invoice.
- Inventory Control — Contractors in particular often find that they have less inventory loss due to pilferage when equipment is rented rather than owned. Although at first glance this may seem strange, there is a very logical reason for it. The presence of continuous billing on any renters item tends to establish accountability for that item. The contractor who owns a great deal of miscellaneous equipment has a difficult time establishing personal responsibility for any of it. Tools signed for at an equipment rental yard—tools which must ultimately be returned—seem somehow watched with sharper eyes.
- Disposal Costs — It costs money to sell any type of used or obsolete equipment. Preparing the equipment for resale advertising and selling time are factors of ownership that do not occur in renting.
- Obsolescence — Faster and better equipment is constantly appearing, as manufactures battle for market keenly aware of rising wage costs. Ownership involves the risk of being handicapped with equipment that is slow and unwieldy compared with newer models. On the other hand, Poes Rental Company keeps available the latest types of models of equipment.
- Correct Equipment For The Job — Ownership often forces another kind of inefficiency through use of the wiring size or type equipment for a given job, even though the equipment is not obsolete. This can also mean additional, though hidden costs. Rental Equipment insures the correct equipment for the job.
- 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. When ownership,say, of basic equipment only is combined with rental as needed, idle time of equipment is minimized.
- Personal Property Taxes and Licenses — There are no personal property taxes or license costs for the user of rented equipment. On owned equipment these are substantial costs, which must be added to the cost of owning rather than renting.
- Conversion of Capital — Renting frees capital for other, potentially more profitable uses than that of being tied up in equipment.
- 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 most important in securing the bonds necessary for construction work.