Why Rent a Plant Trailer Instead of Buying One
Right now you might be thinking whether to hire equipment or purchase a new or used one instead.
You’re considering the various tradeoffs, your current financial position, future business outlook and other things. It’s an engineering decision wherein you want to achieve a certain objective while making the best use of the available resources.
Why hiring or renting makes sense
First, hiring a plant trailer results to cost savings and gives you a higher level of flexibility. That’s because you’re only paying for it as you need and use it. Perhaps it’s just a one-time project (one-time client request, sudden increase in haulage requirements). Or, it’s only temporary and just testing the waters initially. You’re still uncertain about the nature of your future projects.
That uncertainty makes it a real challenge to plan ahead. In these cases (especially if you’re just starting out), it’s always good to maintain some level of flexibility. As much as possible, control the operational costs so you can keep the business afloat. Often it takes some time for starters to land huge clients and a steady stream of projects. Even in businesses that regularly transport machinery, some level of flexibility is also desirable. Perhaps in the beginning they hire additional trailers to speed up haulage and increase capacity. It’s also possible they hire plant trailers because one of their owned trailers was damaged.
This flexibility is possible because the upfront costs are much lower than buying a new trailer. You can better spread out the costs so you can reserve the cash for the fixed costs of your business. If there’s a huge uptick in contracts, you can hire multiple trailers as you require instead of purchasing them all.
You can always buy more later
Initially (or unpredictably), you can hire trailers and other heavy equipment for your operations. This is a good way to stay lean and flexible. Take note that in most businesses, there’s a huge cash outflow first before owners realise any revenue and profits. To somehow ease the burden and reduce initial cash outflow, renting equipment is an economic decision.
As your operations grow and stabilise, you can then purchase trailers and additional machinery. You can also choose renting whenever your operations require additional capacity (while working hand in hand with your existing equipment).
In these cases, K and G Machinery can provide you with the equipment hire you require. At affordable and reasonable rates, you gain access to machinery to carry on your haulage and other operations. Contact us today if you require a plant trailer for your project or business.