If you’re in the business of construction or one that involves transporting a large number of inventory items within the warehouse or store premises, you know that one of the most significant expenses that you will have to go through is in the purchasing of equipment.
As much as you would love to purchase all your equipment all at once, doing so can hurt your budget. For many, you may have to take out a loan as these equipment, such as forklifts, are more expensive than buying a car.
The good news is that if you are from Sydney (and even in other parts of the world), many companies such Mars Forklift hire in Sydney can offer you a rental service. Instead of having to buy all your equipment at once, you now have the better option of renting. What are the benefits that you can gain from doing so? Read more below.
1. You Have More Flexibility
When business is good, you can get tempted to purchase a forklift outright. You need to clear the floor to make room for more deliveries, and put the older stocks on the aisles or on display. Because this has to be done effectively, you will need a forklift to do this for you. It is downright impossible to have a human being lift all these massive stocks, and at great heights at that. But when business is on its bad days, what are you going to do with your forklift? Even if you don’t use it as much during a specific period, the cost of maintenance is fixed, together with the other fixed expenses that go hand-in-hand with owning a forklift.
If you rent instead, you are offering yourself more flexibility. Why buy when you can rent? That way, you know that you have a forklift only when you need it, and you are paying for variable costs instead, rather than fixed ones. This lessens your expenses, as you are only shelling out money when you need to.
2. You Can Save On Initial Investment
This is perhaps one of the most apparent benefits that you can gain from hiring a forklift instead of buying one: you can save so much on your initial investment. Especially if you are still a small and up-and-coming business, there’s a chance that business might not run as smoothly as you expected. You may end up losing a high capital investment, not to mention having equipment that will no longer be put to good use.
To keep things on the safe side, go for a forklift for hire instead, especially during the first few years of your business when you are still trying to build rapport with your customers.
3. You Can Choose From A Wider Range Of Options
Not all of the forklifts are created the same. There are different ranges, heights, widths, and even carrying capacities that each forklift can have. As technology improves, so do the kinds of forklifts available. The model that you are using now may no longer be efficient in a few years. To avoid this kind of dilemma, it is best that you hire a forklift instead.
For instance, for this month, you may need a forklift for a certain set of specifications. But what if on the next month, you may need another one, and the one that you have bought isn’t as compact for the job that it needs to perform? You are only going to be wasting your investment. To give your business a chance to adapt to the positive changes in technology, go for a forklift hire instead.
4. You Don’t Get To Waste On Depreciation
In business, equipment is considered a depreciating asset. When you buy a new forklift, you are paying for its full brand-new price. But remember, even before you get to use it, the moment that the forklift is transported from the manufacturer to your place of business, you have already lost 20% to 30% of the purchase price for depreciation. Apart from that, every year, the depreciation rate of your forklift is also being computed.
All that money lost on depreciation could have otherwise been placed elsewhere had you rented out a forklift instead. When you rent a forklift, you do not have to feel the financial costs of depreciation on your equipment.
Depending on the kind of business that you run, you might need a forklift. If you are only a small start-up business, this can be problematic for you, since buying one outright is very expensive. Adding up to the purchase price are all the other necessary expenses, such as insurance and maintenance. Is the cost going to be worth it or are you better off hiring a forklift instead? With this list of benefits, perhaps you are now more convinced that renting out forklifts is the best solution for you.