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Renting equipment for one site

Discussion in 'Commercial Snow Removal' started by brookline, Jun 22, 2011.

  1. brookline

    brookline Senior Member
    Messages: 592

    I know some companies rent loaders and/or skids to keep on a site. I was wondering if they put in an equipment charge of some kind to keep that piece of equipment on site whether it snows or not? Any one have any experience doing this?
  2. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    We have been fortunate or unfortunate most stuff is seasonal so $ is secure. Renting is expensive in my eyes & really a wasted money, for about 20% more than the rental for the winter, you can make the payments for the year. Last season we rented on machine (wheel loaders) last season, bought one, other we bought 3 years ago. The rental we were looking at buying they would apply 100% of payments to machine, it was a Terex, which are made in England & lack dealer support here, then finance co also had issues on both ends, lack of comparable machines & my 2010 taxes were not completed. Over all it was probably a blessing as the machine appeared to have alot of germlins as well.
  3. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,756

    The loader can't leave that one site?
  4. Plow man Foster

    Plow man Foster PlowSite.com Addict
    Messages: 1,153

    I have 2 points like RLM said its really not good to rent when you're in the business.... Michigan CAT has a great program if you're going to "rent" something. I am doing this plan right now actually. Its a rent to own Program. I have been renting it for a year now, Its 800 a year for me and all the money i put down for renting it goes towards the NEW machine! Only catch is it has to be the machine im renting but that wasnt a problem.

    When they REQUEST equip. be left on site i make a contract where they pay me regardless if it snows or not in the month. i Say we usually plow about XX amount of times and salt about XX times then just multiply that by how much i charge per push or salt. Take that number and divide it by 3. which is the amount of money i get paid if it snows or not in that month! This is nice if it doesnt snow or i only salt once or twice that month
  5. Matson Snow

    Matson Snow PlowSite.com Addict
    Messages: 1,985

    Do you mean $800 a Month......Also, For how Long, Why not Just Buy the Piece of Equipment and Finance it...I think it would put you in a Better tax situation...
  6. Drakeslayer

    Drakeslayer 2000 Club Member
    from Carver
    Messages: 2,803

    I am confused by all of the above.
  7. Plow man Foster

    Plow man Foster PlowSite.com Addict
    Messages: 1,153

    haha its ok so am i Thumbs Up
  8. Plow man Foster

    Plow man Foster PlowSite.com Addict
    Messages: 1,153

    Oh im sorry yeah its 800 a month and you just rent it for how ever long you need it for. The advantage of renting it is your not putting all the hours on your machine...also when i rent it they come to me to change the oil and do all maintenance. ALSOOOOOO If i tear up the tracks while plowing with it i dont have to buy new ones! I love my Skid steers
  9. Matson Snow

    Matson Snow PlowSite.com Addict
    Messages: 1,985

    I am confused also.......You stated above its the Machine Your Rent....Then you state its a New Machine...In my opinion..rent to own is Never a Good idea...Along with losing out on tax benefits of a Purchase...By the end of the "Rent to Own" contract you have payed way more for a Used Machine...JMO
  10. Plow man Foster

    Plow man Foster PlowSite.com Addict
    Messages: 1,153

    Not necessarily! Since 100% of the money you pay goes towards your machine there is no way to Pay more for it.

    I think where i confused you is here:
    the Machine we are leasing is NOT the machine we get to keep in the end. They take the beat up one Sell it as used probably and give us a new one.
    So when we started this program we got a 279C Skidsteer ....We lease that, at 800 a month. Then when the lease wass up all the money i put down to lease it went towards a NEW 279C Skidsteer! (same model as the one i leased)

    We Rent loaders in the winter and Rent mowers in the summer....it works for us!
    Last edited: Jul 17, 2011
  11. brookline

    brookline Senior Member
    Messages: 592

    What about when they do not request one be left on site but you need to have one on site? How do you charge them? Do you say its$800 per month plus per push or do you HAVE to have them on a seasonal rate? What is the normal for those circumstances is what im trying to figure out.
  12. Plow man Foster

    Plow man Foster PlowSite.com Addict
    Messages: 1,153

    Normal is a seasonal rate. I just keep the equipment my shop or in my parents backyard.
    My dad likes plowing his driveway with my 272C skid steer before i or my guys come. We do his sub Division so its not a problem!
  13. TCLA

    TCLA 2000 Club Member
    Messages: 2,707


    You're seasonal charge (or push push rate) would be expected to cover this cost (plus profit) for you.

    We do not approach the client with this problem. It is our prerogative what kind (and how much) equipment to use to get the job done whether they require it or not.

    We use dedicated loaders that are left on sites for hourly, per push, seasonal and all inclusive agreements. It is not their problem, nor do they care what our cost burden is. They just want a job done.

    It may be best for you to cut an hourly rate with someone who already owns a loader, rather than rent one. Variable costs vs fixed costs will work better for you in the "equipment left on site" scenario.

    Good luck to you Joe....hope your summer is going well for you sir! :waving:
  14. Matson Snow

    Matson Snow PlowSite.com Addict
    Messages: 1,985

    Joe....Jim(TCLA) pretty much coverd it.....On the Machine rental for the winter, Michigan Cat has a Winter rental Program....Its Pretty costly...Stop by the Michigan Cat in Brownstown...They should have a Price sheet out for winter rentals....The prices i see some of these Big Box and other large retail sites going for i think like jim said...I would find some people with loaders and make a deal...Happy Summer Joe...:drinkup:
  15. brookline

    brookline Senior Member
    Messages: 592

    Thanks Jim and Todd that's what I was looking for! Happy summer! Hope the winter is as snowy as this summer has been hot.