As you know, construction
machines are widely used in many industries including farming, forestry,
construction, road services, etc. Over the past several years, the popularity
of construction equipment rentals has increased rapidly, and
starting a rental business may sound like a good idea to you. Of course, it requires a certain
amount of investment, but with the proper organization and planning, the payback
period will be quite short. In this article, we will discuss some basic initial
expenses you will need to consider as the owner of a new rental business.
Purchasing or leasing construction equipment. As a rental, you will benefit from having a wide range of machines, as many B2B
segment customers often prefer to use the same company for different projects. It makes little sense for a big client to rent a grader
from one company and a dump truck from another. The basic set of equipment
will depend on the specifics of the market in your region as well as climatic
and geographical conditions.
Tip 1. If you want to learn more about your market, call
construction and agricultural companies in your area and ask them these two
What kind of equipment is this
company using/looking for?
How much is the company
willing to pay?
By doing this, you not only
have a chance to do market research, and decide on what machines to
purchase/lease, but might also find potential customers for your future business.
Tip 2. When purchasing/leasing equipment, consider seasonal
factors. Prices for machines are usually cheaper during the low season.
Tip 3. If you have a very limited budget and worry about
purchasing extra machines, it will be easier to find the missing machines from other rentals and to act as a middle man. In this case, earnings in the amount of the commission will be
significantly less, but the risk of additional downtime of your machines will
Renting/purchasing property. Choosing the place to keep your construction equipment is very important and requires research and investment. You need to think about where the equipment will be stored. For this purpose, you can rent a site at a car depot or on a lot of a transport company. Important elements to consider should include an enclosed building, a fenced-in area, and a location near a road junction.
Hiring employees. In the beginning, we would recommend you hire people
for the following positions: a sales manager, a mechanic and a few machine operators.
However, sometimes in a small business, the role of a sales manager is
performed by the owner. If you feel comfortable with it taking on the role, why
Marketing and advertising. Currently, there are plenty of online platforms and
apps for posting ads, both locally, and regionally. Conduct basic research to
help you understand which are most used in your area or are most likely to get
the most customers. Work on visuals of your shop - the sign should be bright
and large to catch the eye of your potential customers. Do not forget about the
best method of advertisement, which is the word of mouth. Tell your friends and
acquaintances about your project, and you will be surprised how many clients
will come on their recommendations.
At WEITAI you can purchase a wide range of top quality construction equipment, including skid steer loaders, compact track loaders, wheel and crawler excavators, etc. Our machines are powerful, multifunctional and versatile, and demonstrate a great performance. Contact us to learn more information and good luck with your rental business!
WEITAI Marketing Department