Maximizing profit by choosing between renting and owning equipment
Just like with all heavy machinery, the decision to obtain a piece of equipment is not an easy one. Specifically, the decision between buying or renting crushing equipment as it could mean the difference between straining your company cash flow and turning a meaningful profit.
Initial Questions to Ask Yourself
What is my company’s existing finances?
What would be the length and frequency of use?
What are short-term and long-term costs associated with this equipment?
There are other questions that might be specific to your job site or needs, so make sure you have a concrete understanding of what you need. If you are still unsure, it’s important to know who to reach out to with questions, both internally and externally.
Buying
Pros
Financing options are able to ease the acquisition.
Depending on the nature of your crushing operations, it is likely in your best interest to buy crusher equipment for long-term jobs or if you see your company needing regular, repeated use of a certain machine.
The machine that you purchase is available whenever it is needed to be used.
If you employ well-trained team members, buying and maintaining crusher equipment may be no costlier than renting regularly serviced equipment. Employing team members on site could resolve unexpected more quickly than waiting on service from your rental partner.
You could decide to resell your portable impactor plant or even rent it out yourself to maximize the value of the equipment over the course of its lifetime.
Cons
Unless your job requires it, buying crusher equipment usually requires a larger investment than renting.
You will be responsible for all maintenance and wear parts while that may not be the case in a rental.
Renting
Pros
Renting can allow for a smaller initial investment.
It is likely more appropriate for short-term jobs.
Rental cost may be applied toward purchase if utilizing a RPO (Rental Purchase Option).
Cons
The costs of renting could eventually eclipse the outright purchase of the same crusher equipment depending on the length of the job.
Relying on renting may present unexpected downtime when the demands of other companies render your desired equipment unavailable
Depending on the job length and frequency of use, rental costs could add up over time.
Making the Decision
Ultimately, all of these variables and more should be explored when it comes time to invest in crusher equipment. If you are interested in buying or renting from Eagle Crusher’s comprehensive line of crusher products, we encourage you to contact our sales team for more information or reach out to our network of distributors.