Growing your sewer contracting business may seem daunting when you have limited resources, but diversifying your services may be more attainable than you think.
Relying on Rentals
Budget is frequently cited as the main factor limiting expansion, as it determines both hiring and equipment purchases. Renting equipment may help fill the capabilities gap while your company, and budget, grow.
Renting equipment rather than buying outright means that smaller companies don’t have to walk away from a job. But larger operations often find renting to be valuable, too.
For example, larger companies may overbid on jobs with the expectation that they won’t win 100% of them. When they win more jobs than expected, they don’t always have the equipment for proper deployment. The solution is often to utilize rental equipment.
Making the Best Choice for Your Business
But renting comes with certain limitations, too. While the cost of occasionally renting is often cheaper than buying a piece of equipment, frequent rentals can add up to the cost of purchasing—without resulting in the business actually owning the product.
There are also restrictions and responsibilities that come with renting, and it’s a first-come, first-served process, which means the equipment may not always be available if you need it.
When companies inquire about renting equipment through PRT, they are asked a number of qualifying questions first, says east coast territory sales manager Nick Sebastian, to help them make the best choice.
Those questions include details about the project they are hoping to complete, including pipe size and timeline; how often they come across this type of project; what kind of resources they currently have in place, including supplementary equipment; where they want to be in five years; and if they are comfortable with the status quo or are looking to grow their business further.
All of these factors play a role in whether renting or buying equipment is the right choice. For one-off projects that a company isn’t asked to do often, renting may be advised. But with frequent or semi-frequent projects, purchasing the equipment is likely more cost-effective long term.
Renting may also be right for companies that are satisfied with their current capabilities and don't have immediate plans to grow. In addition, for those hoping to expand their operations and take on more projects, renting may be the best avenue until investing in the equipment becomes possible.
Other Options
For those who fall somewhere in between, PRT offers a leasing option. Companies can choose to rent equipment for a month, and if they decide to purchase, they receive 90 percent of the rental cost back towards the purchase. After the second month, they receive 60 percent and after the third month, they receive 40 percent.
Companies may not be certain what equipment they want to buy, or whether they need it at all. This leasing option gives them the chance to interact with the equipment and make an informed decision.
Reflecting on and understanding your company’s current resources, needs and future goals can help guide you in making a decision between renting, purchasing or leasing sewer equipment. Knowing how to utilize existing options can ensure your company stays on track to meet its goals, regardless of present resources. Learn more about rental and leasing opportunities from PRT:
