Renting Vs. Buying Equipment is a question we all have in this industry. When is the right time to buy and when should you hold off on buying and just rent. Here are a few basic principles Jeremy Reets follows in his own water restoration business.
If you are a new business in this industry and you are just starting to get into your first few jobs you absolutely need to buy some equipment to start you going!
But what do you start with? We can help! If you would like a full list of equipment to buy when starting your new business give us a call!
Starting out you need to buy enough equipment to do one good size job. Then if you get a large project or multiple projects you can rent from there. There is no need to buy equipment that you don’t need. Renting is a great option for when those occasional jobs that need more equipment then you have come up. Even if you are not ready to start renting equipment because you don’t have the jobs, you can go ahead and set up that rental relationship so it is ready for when you need it. Setting up a good relationship with a company to rent from is crucial for when you are in need of more equipment.
If you have been in business for some period of time and then the rent vs. buy question may come up in an event such as a freeze or some sort of storm. There is a perfect example of renting the amount of equipment you need for those jobs. Buying equipment for those special circumstances may prove trouble some when the storm is over and you have a lot of equipment to store and maintain that is not being uses.
There is also a period of time when the rent vs. buy equipment dilemma comes up when you have a lot of jobs coming in and not enough equipment for those jobs. In Jeremy’s expert opinion, only buy more equipment if you NEED more equipment on a regular basis. If you are finding you are running out of equipment for your every day jobs then you should buy more equipment.
Following these few principles is going to give you the best opportunity to make the most amount of money on each particular event.
Watch the video below to see Jeremy Reets explain it himself!