Whether it’s for a small business or a large corporation, there’s always been a debate regarding which is the more economical choice: hiring equipment or buying it outright. While many would argue that buying equipment outright is better, the simple truth is that hiring is actually still the smarter and more cost-effective choice.
As a business owner, it can be difficult to tell which one is truly more cost-effective. It’s important to consider certain factors: budget, time, and demand.
Avoid Breaking the Budget
Many equipment providers and rental companies, such as Classic Hire, note that hiring is technically the more economical approach as the hiring fee for almost all industrial equipment is relatively low. It’s no secret that equipment is very expensive to purchase outright, but the price you have to pay isn’t just the upfront cost.
Apart from the upfront cost, there’s also registration and maintenance fees, as well as repairs fees, which can really put a dent in your business’ budget. Hiring, on the other hand, doesn’t require a large upfront outlay, allowing you to free up some capital for use elsewhere.
You also save on time. Typically, rental companies are sensitive enough to schedule the deliveries of their equipment depending on your needs. On the other hand, you’ll have to register your equipment if you buy it outright, and this takes some time to do.
When Equipment Becomes Useless
Another benefit of hiring equipment is that you don’t risk investing on something that will become obsolete in the near future. Most companies have already planned the obsolescence of their products, but make no mistake; this isn’t because they want to make more money from their consumers. Advancements in technology are incredibly fast, and this means that these manufacturers must innovate their products as quickly as technology dictates to meet industry standards.
You’ll technically lose out on capital if you buy a piece of equipment that will go obsolete in a few years. Apart from wasting your money, you risk decreasing the quality of the work you do, as well as raise safety concerns within your workplace.
While buying equipment outright does have its benefits, renting is still the more economical choice. You’ll be saving a lot of money in the long run, and you also avoid the likelihood of the equipment itself becoming obsolete.