The construction activities have increased due to increase in population. Many big and start up construction companies cannot afford to a buy and maintain all new equipment for their work, especially in case of short term projects. Hence, they prefer to buy equipment and machines on rental basis at an affordable price and return it after use. Thus, rental business is profitable and is booming. It is observed that many equipment rentals only rent specific equipments and do not keep all types of equipment. It is because they have studied market and functional aspects of the equipment. Since most of the heavy equipments are multifunctional, being in rental business of specific equipment can be a good idea as it saves the cost of buying and maintaining different equipments.
Excavators are called the giants of the construction industry. They are powerful machines which can dig through concrete, install electrical service, transfer loads of bricks, lift objects high, and break down huge rocks and entire structures. Due to their wide applications, they are very much required in any construction project, however they are expensive. Excavators are in demand, hence starting the business of renting these machines can be profitable. Being a costly investment, it is expected that person should do some research before starting this business.
The following guidelines will be helpful for the person who wants to start the business of renting an excavator:
- Excavators are cost and rental service provider (RSP) should be able to afford to buy them. He should be aware of his personal expenses while owing a big place or showroom, advertising, labour and maintenance costs, and so forth. He should make a business plan for selling excavators.
- If RSP provides excavators at high rental price then many buyers will find it expensive and difficult to purchase. Hence they will negotiate with the price. RSP should provide excavators at appropriate price.
- RSP should make his excavator rental service popular by advertisements in newspapers and websites.
- Buying entire fleet of brand new excavators is indeed very costly. To avoid, RSP should study the demands of the market to know which the most preferred model by the construction industry is. Keeping excavator from small to mid-size of different brands is a good option.
- Due to technological advancements, the new equipment have become compact and easy to operate, using such equipment has increased the speed at work place and increased productivity. The new compact excavators are more in demand and are preferred to old versions. RSP should provide such technologically advanced excavators on rent, which increases the customer interest and sales.
- Buying used equipment on rental basis is common for the short duration projects, hence they are in demand. Thus, RSP can also look for option of renting ‘used’ or ‘second hand’ excavators, since purchasing such equipment is cost affordable. However, they should be careful while choosing such equipment that they are not damaged. Only when these used machines have less wear and tear and their parts are available that they should be purchased from the seller.
- RSP should be careful while renting the expensive heavy machines to the buyer. They should understand the nature of work requirements of the customer and should guide them properly. They should make sure that the buyer has the capability to pay the rental amount and would take care of the equipment and will return the equipment in good condition. After all the terms and conditions are acceptable to both parties, a rental agreement has to made between RSP and prospective buyer