When may venturesome entrepreneurs look to invest in large amounts of capital to start a business or excited households find interest in furnishing and redecorating, they run out and purchase the most state-of-the art and newest equipment they can find. However, this is not the case with most business owners and households. Many of them simply look to start out with few overhead costs and seek to just get by on what works rather than what’s new. They do this by renting equipment and appliances they need. This saves them both the time of finding places to store their items when they are done with them and the cost of purchasing these necessities, new. As someone looking to start a business, you can find ways to capitalize on this by providing tool and appliance rentals. Here are a few things you need to know.
Find broken or used items
If you are handy with your own set of tools and know how to fix and repair items, you can get a great deal on a plethora of equipment to rent out. Most people search places like auctions and garage sales for their rental equipment, however, many of the equipment, that’s available, can be found almost anywhere. Equipment has a tendency to lose its value, almost instantly, once it is broken. If you can find broken goods, at a reasonable price, and fix them up to rent them out, you can open yourself up to more rental inventory and a larger profit margin.
Price right
The dilemma that most rental companies get faced with is the responsibility of pricing high enough to make a profit but low enough to attract customers. For example, a customer may not be willing to rent a lawn mower for $200 a day, when they can purchase a new one for $300 at the local hardware store. This is another reason why it is important to keep your costs low by finding equipment at a profitable price. Getting your items for a low price can allow you to price the equipment as low as you need to, in order to get customers.
Offer many options
As a rental business, your clientele will generally consist of those looking for a bargain. So keeping many options for those who are trying to save, open, can draw in more customers. Try offering hourly rates, daily rates, weekly and even monthly rates, if needed. You may find that some items will vary according to customer’s needs. A household that may need to mow his lawn in the morning, may only need a lawn mower for an hour or so. Whereas, a restaurant may need to their commercial equipment for a longer period of time. Offering different rates can greatly expand your business.
Consider the cost
When renting out your equipment you may be concerned about return policies and damage-related costs. It is important to consider these costs and decide whether you choose to factor them into the rental costs. It is also important to keep your equipment in working condition, always ready for the next customer. You don’t want to find out, from an unsatisfied customer, that the lawn mower’s blade was previously chipped, days after they have rented the item. Factoring your costs and keeping up with maintenance issues is an important aspect of this type of business.
Starting your own equipment rental company can be a great way to make money. Finding ways to keep your costs low, to provide your customers with many options and to factor in the costs of maintenance and repair, can be a great way to start, too.
