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Rental Q&A

QA

Part 1

Q: Is there more rental going on now than in previous years, or less? Why do you think this is so?

A: If you look at the rental industry as a whole, we have seen a little more than a 4 percent increase from 2015 to 2016, so that tells us there is more rental going on now than, say, last year.

At Able Equipment we service the NY Metro, North Jersey, and Philly markets. In these markets our company enjoyed more than a 40 percent jump in rental revenue from 2015 to 2016, and we expect to sustain all that growth plus tack on another 10 percent in 2017.

Q: What are the factors customers consider when they rent equipment?

A: When renting equipment you want to ensure you get the best value possible. This means selecting a rental house with the expertise to recommend the right piece of equipment and the experience to service and deliver that equipment to your job site.

Q: Why should someone buy versus rent, or vice versa?

A: Renting allows companies to focus on their core strengths, which usually does not include maintaining a large fleet of equipment. Additionally, they don’t need to commit resources toward transporting equipment to and from job sites or storing it when not in use.

Lastly, they don’t have to commit large sums of capital toward owning and maintaining equipment. There are some situations, though, when it may make good sense to purchase equipment rather than rent. A good example is highly specialized machines that may be hard to find at a typical rental house. Or if a particular machine will be needed frequently during the course of a project that may last several years, purchasing might be a more cost-effective option than renting.

Part 2

Q: Is there more rental going on now than in previous years, or less? Why do you think this is so?

A: I believe that there is definitely more rental activity, and the market will continue to grow. Customers are realizing the benefits of renting equipment. Outsourcing and doing what you are good at is a great strategy. The job sites are more productive and the work gets completed faster.

Q: What are the factors customers consider when they rent equipment?

A: Having the right piece of equipment to get the job done is a huge benefit. My customers can rely on me to maintain the equipment and keep it in good working order and also deliver it to the job. Good rental companies keep their fleets new and customers can use the newest equipment to keep productivity high.

Q: What are some of the basic benefits your company has received from renting equipment?

A: As a rental dealer we can make our customers more efficient. They simply call us with an equipment order, we meet them at the job, they can complete their work and then leave for the next job. My drivers then go get the equipment and get it ready for the next customer. My customer knows exactly what his costs are, and renting eliminates costly breakdowns and equipment hassles.

Q: Why should someone buy versus rent, or vice versa?

A: Benefits of renting:

• Availability of the right equipment

• Minimal down time; if the equipment breaks, the rental dealer will send you another unit

• No maintenance or storage costs

• Renting allows you to know your true job costs

• No capital outlays, which saves your capital resources

• Pay for the equipment only when you are using it

• Newer equipment improves productivity and safety

• Renting is convenient. No need to hook up your trailer and head over to the yard in traffic. Most rental companies will meet you at the job for an early start.

Some of my customers tell me that they believe in the benefits of renting but still want to purchase. Having the machine available for a 10-minute job is sometimes a big deal. They also feel that they are building equity in the machine for a possible sale later. Some customers use the equipment every day or all year round, which can provide some savings over rental.

When renting versus buying, you need to understand your actual costs, the amount of usage each machine will receive, and your cost of capital.

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