As a business, you're no doubt always aware of the costs of renting versus buying equipment. But, in addition to the outright costs, there are many factors that come into play when determining the most cost-effective solution for your company's equipment needs.
With equipment like scaffolding, for instance, consider these three important aspects to help you determine whether you should rent or buy.
Like many pieces of equipment, scaffolding should be handled by an experienced operator. Scaffolding is designed to make your construction project more accessible, efficient, and safe. But if you and your crew don't have the understanding and experience to set it up and dismantle it properly, the scaffold could become a danger and a hindrance.
When you rent scaffolding, you rent the experience of professional installation and removal in addition to the actual equipment. This addition should be factored into your decision of whether or not to buy.
If you do buy, you'll need to make up for this experience and professionalism at moving and managing the scaffold pieces - possibly in challenging or unfamiliar environments - while still getting your work finished. If that factor requires too much of an investment of time and training, renting may be your best option.
If, on the other hand, you have skilled workers who will use best practices and identify potential hazards, you may be in a position to buy the equipment and rely on your employees to use it.
Price out the cost of purchased scaffolding, then compare it with the weekly or monthly cost of renting comparable pieces. That gives you a break-even point, at which purchasing is equal to or less expensive than renting. If you expect the current work to exceed that break-even point, buying equipment is likely a cost-effective option.
However, when adding up the break-even point on any equipment investment, remember to include all the expenses related to ownership - such as repairs and replacement of individual parts, insurance coverage, and transportation as well as installation and removal. Overhead costs are often higher with owned items rather than rented ones.
Figure out how long you'll actually need the scaffold or whether you'll use it sufficiently in the future. If you buy scaffold, will you use it after this job is completed? If not, would you plan to sell the materials or keep them on hand? And if you sell, will you get a price that will make it worthwhile?
If you do expect to need scaffolding again in the near future, would it be days or weeks before you need to use it - or could it be months or years? Do you want to store your own scaffolding on your work site until it's needed again? What are the costs of storing units - the cost of lost storage capacity and protecting it from the elements, for instance? Does adding that cost into your break-even calculations make a difference?
Many new businesses and those who are venturing into new projects don't have reliable data to foresee their future use. That makes it hard to know what sizes and shapes of scaffolding might be needed or the conditions in which it will need installed.
Renting helps avoid unnecessary burdens and commitments while you get your new services up and running. Later on, you'll have more information to make informed decisions about longer-term investments.
At
Pacific Scaffold Company, we have years of experience setting up safe and effective scaffolding on any size job. We can help you determine your long-term needs and meet them in the most prudent manner - for safety, efficiency, and budget planning. Call today to learn more.
