Posts Tagged: rent vs buy

Shipping containers are a perfect solution for businesses dealing with bulk shipments. They are durable enough to be used for storage as well as transport and they are much more affordable than any other adequate type of packaging. Containers are available and managed all over the world, which means that international businesses can use them without worrying about delays or incompatibility problems. In the end, shipping containers are also a very eco-friendly option because they can be reused for years.

The most important choice a business must make regarding the shipping is whether to buy or just rent the containers. The answer depends on a lot of factors, the cost being just one of them and possibly not the most important one.


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Renting

Businesses that sell seasonal products will find it more lucrative to rent the containers. For instance, winter gear and clothes, or fruits and vegetables have a relatively set schedule, which means you will only need the containers for a few months, not the whole year. The same goes for storage, the containers can be used to safely store items you won’t be using for a while, after which you can return the containers and forget all about them.

The containers that have been in your possession for a while will probably appear worn out and possibly have some signs of damage. This can appear sloppy and unprofessional and it can damage your credibility if you’re bringing clients to the shipping site. Also, containers often get vandalized by graffiti artists, which also creates additional expenses. All of this can be avoided by renting the containers and letting the company that rents them deal with their appearance.

A business can change pretty quickly. It can grow or fail in a matter of months or even weeks. With the containers you’ve bought, you’re stuck with what you got regardless of the changes in your business. Renting provides you the option to expand and be flexible with your needs and not worry about overspending or being short on space when the shipment is due.

Buying

For those who are interested in the long-term use, buying a container is more cost effective than renting it. The only problem is determining what can be considered long-term. It’s safe to say that after a couple of years, the cumulative costs of renting will surpass the price of a container. The same applies when you’re certain that shipments are going to be necessary but you can’t determine the exact schedule.

Buying your own container, like the ones you can get from Sea Container Sales and Hire, will also allow you to make all the modification that you see fit. Large moving objects that pass through the hands of hundreds of professionals can be of great potential for branding and promoting your business. That means that when it comes to customizing, the first thing you should do on every container is add your logo and contact information. But, you can go beyond that–adding additional container departments is always an option depending on your needs.

Shipping containers are pretty durable and they can withstand a lot of impact, but if you’re expecting a difficult voyage and there’s a potential of significant damage to the containers, purchasing your own is a preferable option. That way you will only pay for the container; with a rental one you would pay for both renting and fixing or obtaining a new container for the renting company.

The advantages of using shipping containers are numerous. They are both easily manageable and eco-friendly. Businesses who need one should just assess their long-term plans and decide whether to buy it or rent it. The right choice is cost-effective and provides the business with many flexibilities in terms of schedule and maintenance.

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Renting industry equipment was often met with a fair share of disagreement. Namely, renting was considered to slow down the industry growth and deprive  small businesses of the long-term assets necessary for stable development. Both of these statements are, in fact, wrong. According to one US market research from July 2016, the rental of contracting equipment generates an additional 46.9% of industry growth. Here’s how renting benefits the businesses who lack the equipment.

Reduced Up-Front Investment

Every business starts from scratch. Not every business has the funds to immediately acquire all the necessary assets. For the vast majority of such companies, waiting for the right circumstances to make substantial up-front investments means bringing the entire business to a halt. The businesses who rent the necessary machinery are in the position to continue with their operations and generate revenue until they are able to obtain the piece of hardware they need.

Scalability

The fluctuation of the market demand is an issue that plagues all businesses, regardless of their size. While some of them are able to effortlessly bridge the periods of long slow-downs, for others stockpiling the unnecessary equipment represents a huge waste of the precious resources. Renting the equipment offers such businesses a great deal of flexibility and scalability. When the spike in demand occurs, business can easily rent all the machinery they need. Once the equipment is used, it doesn’t generate any additional costs.

The Matter of Maintenance

Speaking of additional costs, all equipment needs maintenance. For start, all machinery needs to be properly stored and protected from the elements. Furthermore, the price of spare parts and maintenance in the long run overshadows the price of the equipment itself. These costs have to be taken into consideration when making the annual budget. Renting allows business owners to use the equipment they need to finish the job and leave the maintenance to the vendors.

The Depreciation of Equipment

All businesses buy the equipment hoping that they will, at some point, be able to sell it and return some of the invested money. Unfortunately, the market situation rarely allows for such optimistic thinking. The price of any device, tool or piece of the equipment starts to drop as soon as you buy it. The constant influx of more streamlined, affordable and newer alternatives doesn’t make this situation any easier. When you take all this into consideration, renting only what you need and when you need it does make a lot of sense.

The Opportunity to Try Out the Equipment Before You Buy It

Of course, not all businesses are planning to rent the equipment forever. In some cases, making an up-front purchase is a must. So, if you are, for example, planning to acquire an elevated work platform, you can always find a reliable ewp hire company from Melbourne, Sydney, or any other city your business may be located in, give the platform a try and make the final decision afterwards.

Tech Support and Assistance

Getting a handle on some new piece of equipment always involves a certain learning curve which can be very steep. Taking into consideration that you may sometimes need a specific piece of equipment for a specific, one-time purpose, going through all this trouble is simply not worth it. Fortunately, it is common practice among the vendors to offer technical support, instructions and assistance regarding the equipment. This way, responding to immediate and not that common demands becomes much easier.

As we can see, renting the equipment isn’t really harmful. On the contrary, it offers businesses various benefits they wouldn’t get if they were making an immediate purchase. Some businesses even choose renting over purchasing as a long-term solution. Put the numbers on the paper and you will see that your business can benefit from such an approach as well.

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