Should you rent or purchase insulation equipment? The answer is not always “purchase.” There are some things to consider when you you need equipment.
Building Your Business
Hardware stores and equipment rental companies provide a quick solution to getting insulation equipment. They typically offer small blowing machines. If you need a vacuum, then that is a harder find. Renting may make sense at times. Here’s when:
- If your job is small and it is on-off. Purchasing a few thousand dollars worth of equipment does not pay off if you are doing a small job.
- If you are “cash-strapped” and don’t want to liquidate your cash. There is an alternative answer for this one.
- If you need equipment so immediately that you will lose the job. Although we can get you equipment within a day or two, depending on location, sometimes you just can’t wait.
- You want to try out a piece of equipment before purchasing. We offer some limited rentals. Ask us if you need some equipment. We may be able to help!
Renting equipment should be a temporary, quick-fix. It is not a long-term solution.
When Purchasing Equipment Makes Sense
If you are in business that seeks to remain in business and save money, purchasing equipment is always the best long-term solution. Renting equipment is expensive. Within the first few jobs, many insulation blowers can be paid for in full. If you rent a vacuum at $300-$400 a day, you will pay that off within 7-10 days. Rental vacuums usually are smaller horsepower and will require multiple day rentals to complete one job.
Here are some reasons why you want to own your own equipment.
- Owning your own machine saves you time. When renting, you need to pick up the machine and return the machine adding hours to the day. Rentals are often abused and are not blowing at peak performance. See the next point!
- You get the right machine for the job. If you rent a small blower to insulate a 1,000 sq ft house, you will spend 8-10 hours in the attic. That is unproductive and an undersized machine for long-term use.
- You can maintain your own equipment. Productivity can be maintained and you will save hours!
Can You Afford to Purchase?
You can own BOTH a decent blower and vacuum for under $10,000. You don’t need a lot of equity. Usually, new companies start with a blower (approximately $6,000) and then add on a vacuum when jobs require them. So, the cash out-lay is on the low end when working in this construction industry.
If you don’t have the case and a credit card does not make sense, ask us about payment options! North Star Leasing has helped many of our customers with their equipment purchases. When considering equipment financing, be careful not to us a company that has penalties built-in for early pay-off. If you are productive, you will usually be able to pay off your equipment far before the length of your lease.
Here is a testimonial of one of our customers who purchased multiple machines from us, Tyson Energy Solutions in Fresno, California.