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Passing on equipment rental costs to customer

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    #16
    There are different ways to look at it. The new machine can get promotional 0% factory financing for 3 or 5 years. I ran those numbers in the time value of money calculator. 36 payments for 3 years at 0% on $100,000 of equipment is $2,777. monthly. I am thinking if I run the numbers different ways it is still going to come up ~ $3k / monthly, but you could have a a nice mini ex or backhoe. IDK the actual new cost quote.

    I look at it as, the tool set or stockpiled materials is leverage to get me into a particular job type. So I have quite a lot of a tool set to build a house with, concrete form set, staging, ... mostly all bought used over the years accumulated over time. So instead of a series of small jobs for each instance, I want it as leverage to get me into a 1/2 million dollar job building a house.

    There are still items to rent or hire out, but as has been said several times already, having the tool to work when the time comes is a necessary factor. Building the next house is the necessary job for me. There is always the profitability factor, but there is a big factor of if it is work that you want to do and equipment that you want to own and run.

    It is very competitive either way. The guys who own and run older equipment most likely get their adrenaline going from working it and will keep doing that for as long as they can. You can imagine how hard that can be if there is not enough paying local work to stay busy and profitable. That would be the big factors, how tough the competition is and sufficient market pricing power. We all had to fix the stuff in the dirt because there was no shop to bring it to.

    Lasciate ogne speranza, voi ch'intrate

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      #17
      If own it or if you rent it you need to charge. If you own it the repairs cost money. You have to factor in the costs of maintaining the equipment oil changes, parts brake, and employee’s tear stuff up. If you rent it the rental company is responsible for repairs and they can bring a new one to you for less down time. But when it comes to charging for it I do it every time. It doesn’t matter the size of the job if you need it you need it. Even if I owned it I would change a nice penny for it. I have cost involved in it every month if I’m using it or not. If they want quality service they will pay the price to have you there. Or they will pay you when the job is missed up and you have to fix it the right way. Remember you are a professional you have to charge professional prices to stay in business.

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        #18
        Absolutely. The customers are basically doing the same thing when they choose to "rent" an electrician instead of "owning" one (by becoming qualified themselves).
        Master Electrician
        Electrical Contractor
        Richmond, VA

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