Saving time and money certainly is an important aspect of any contracting business. This tends to hold especially true in the plumbing industry where profit margins are incredibly tight. It is necessary to discover creative ways to improve your bottom line. Renting trenchless equipment and tools instead of purchasing them is a solution that a great deal of plumbing companies is taking advantage of. In fact it may very well be the fastest way to earn more money with each and every trenchless sewer repair and replacement job. Renting equipment is actually nothing new for the construction industry.
Plumbing contractors have traditionally rented everything from large excavation trucks down to smaller water pumps. Trenchless equipment and tools should be no different. From pulling units, hydraulic pumps, bursting heads, fusion equipment, and the complementary accessories trenchless rentals in San Francisco, California can provide the upper hand that you need to succeed in the current marketplace. So what are some of the factors that you need to consider when deciding upon renting verses purchasing? First, let us take a look at the costs involved with purchasing.
Typically speaking you are required to put down a significant percentage of the purchase price in cash, which of course ties up a great deal of capital. Then you must secure a loan for the remaining balance. The privilege of borrowing money comes at a cost. High interest rates add a large amount to the monthly payments. By the time the loan is paid off the trenchless equipment and tools ends up costing a lot more than the original purchase price. Not to mention by that point the equipment may have reached the end of its expected life cycle, and be virtually worthless.
On the other hand renting the trenchless equipment and tools typically does not require the same amount of upfront down payment. This feature saves out of pocket capital that can be used in other areas to help the business grow such as marketing and advertising. On average, monthly rental fees are considerably lower than principal and interest payments on equipment purchase loans. This also creates an opportunity to save money that can be utilized in other areas of the business. The other factor to consider is maintenance.
Obviously equipment and tools do not last forever. There are countless piles of worn out tooling stacked in the corners of equipment yards throughout California. A lack of both time and money is generally the reason behind these equipment graveyards. Contractors are left with a bunch of useless junk that they have spent good money on, but can no longer utilize. This is absolutely not a cost effective way to run a business. Perhaps your company suffers from the same fate?
When all is said and done renting tools can save your company upwards of fifty-percent over the purchase price of new trenchless equipment and tools. It is always sensible to fully understand the terms of the rental contract. Equipment and tools may be rented by the day, week, month, or even by the year. In most cases the terms include normal wear and tear, meaning that the repair costs are little to none unless extreme damage is inflicted. Tric Tools specializes in providing trenchless plumbing contractors with equipment and tools that are simple, modular, compact, and adaptable.