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Advise On Equipment Purchasing Vs Renting For Post / Fence Company.

 
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Old 03-04-2019, 10:32 AM   #1
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Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Hello All, long time creeper on the forums, lots of valuable information iv'e found from this forum.

I just wanted some expert assistance on devising a master plan of upgrading a Post Holes / Deckts / Fences / Small Demolotion business.

Right now it's just a small side business doing a fair amount of jobs when we can usually got help for the jobs. With our full time jobs we get quite a lot of days off so to keep busy we usually handle work on the sides.

Main things we do are Post holes / Fences ... also do decks and demo / rebuilds.

Currently we just rent everything except the tools.

We have been sitting over the winter thinking of how to tackle and maybe grow the business.

1) stop renting and buy a used dump trailer / used mini skid / auger attachment / bits
2) buy a used mini skid steer / auger attachemnt / bits , and rent trailer
3) buy the auger attachemnts for the mini skid steers they have locally and just rent everything else

These are just some senerios, renting has been going well the best prices have been from home depot but their bits are a pain in the ass sometimes and seems the weight of the units are not big enough to get into the hard soil as easily as a Bobcat 52+ unit.
One other issue is we usually need a dump trailer as we mix all the cement ourselves and get A-Gravel by the Yard, also the dump trailer does come in handy for disposing of demos and also can be rented out for extra cash.

What do you guys recommend would be the best way about going with this step-up in the business setup, i'm going to sit back and look at what you guys recommend since most have been through this already.
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Old 03-04-2019, 01:29 PM   #2
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Do you have Capital Reserves, Emergency Fund, Equipment Fund?

On one hand, you could keep renting, with the down-sides you laid out, or on the other hand, you can buy used and remove the issue regarding renting but adopting new issues you might not be considering (i.e. - maintenance, repairs, etc.)... Either one, you pass along the costs to the customer...

But the reason why the question above at the beginning of this pioiost is relevant is that if you buy and have to take a loan out to do so, just keep in mind that is like hiring an employee you can't fire until a specific date... the bank EXPECTS to be paid no matter the state of the economy or your business...

BUT, if you have Capital Reserves (i.e. - maintenance, registration), Emergency Fund (i.e. - unexpected repairs, rental costs while repairs being done), and an Equipment Fund (the equipment you buy will one day have to be replaced) you are in a position to remove yourself from the rental market for the equipment you listed... If you DON'T have these in place, you're most likely not in the best position and should remain renting until you've done so (keep in mind you would have to pass along the costs to the customer anyway, so increase your prices NOW, and keep that going after getting to the point where you have enough for the purchase and are prepared)...

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Old 03-04-2019, 01:42 PM   #3
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Are you a legitimate insured business?

If not, start there.

If so, buy the equipment that you rent the most. It would seem that you would use the dump trailer on nearly every job, whereas the skid steer or you might not. I would start there. My dumper has been very useful.

Donít plan on making any money renting out your dump trailer. You mentioned cash, which sounds fishy. It would just suck to not have your trailer when you need it because you wanted to make $50.

It would suck worse if some idiot let it get stolen or destroyed. And you didnít have their credit card number. And they didnít replace it. And they didnít even pay you the 50 bucks and you agreed to rent it to them for.




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Old 03-04-2019, 02:15 PM   #4
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Hi all,
I do work a full time job and do have cash to purchase some if not all of the equipment.
I am registered as a business and have insurance coming for the start of the season (can't play around with the post holes always surprises).

my fear is the maintenance of the skid steer especially if buying used.

I would say that we wont be working every single day we are off but maybe a few jobs a month may come up.
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Old 03-04-2019, 09:45 PM   #5
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


I would get a used towable auger first then the dump trailer. I used a old easy auger for 5years before I upgraded to a mini skid. The main reason I upgraded wasnít drilling holes but that I started using gavel as a add on to jobs after I got my dump trailer and then started doing some paver work.

The order I went

Towable auger
Electric cement mixer
Dump trailer
Mini skid
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Old 03-04-2019, 10:05 PM   #6
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Subscribed. Never skipping over another fence thread


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Old 03-04-2019, 10:25 PM   #7
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


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Subscribed. Never skipping over another fence thread


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Old 03-04-2019, 10:44 PM   #8
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


I have dug by hand I have seen the light lol This will do some holes 15 to 20 an hour give or take

Advise on equipment purchasing vs renting for post / fence company.-ef5373a4-bd5b-4180-ab02-01b91a2ef177.jpeg
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Last edited by DSEexcavation; 03-04-2019 at 10:47 PM.
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Old 03-05-2019, 12:01 AM   #9
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Quote:
Originally Posted by DSEexcavation View Post
I have dug by hand I have seen the light lol This will do some holes 15 to 20 an hour give or take

Attachment 473799
Attachment 473801


Will that drill a 12Ē hole?
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Old 03-05-2019, 12:05 AM   #10
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Last year I rented a skid steer enough times to pay for about 8 months of a payment...
Itís a tough place to be... itís nice not having a payment in the dead of winter, but it sucks not putting that money towards my own.
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Old 03-05-2019, 12:18 AM   #11
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Quote:
Originally Posted by Jay hole View Post
Will that drill a 12Ē hole?

Yes clear up around 30Ē or 32 ď I cant remember other than the 24Ē and bigger are a heavy sob to pin on lol
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Old 03-05-2019, 12:22 AM   #12
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


I am all for buying dirt cheap equipment to make money with until you can buy new or newer equipment. If you do it enough times you might end up with a bad purchases, but it should work out in the long run. I have bought a few things to get me buy until I am ready to spend more that just keep doing the job.
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Old 03-05-2019, 12:22 AM   #13
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Jay take a look at ditch witch used low hours the sk 600 i have is skinny width goes through most gates if need be and it just makes life so much easier having it versus going to rent yard and back.
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Old 03-05-2019, 12:33 AM   #14
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Quote:
Originally Posted by DSEexcavation View Post
Jay take a look at ditch witch used low hours the sk 600 i have is skinny width goes through most gates if need be and it just makes life so much easier having it versus going to rent yard and back.


Iíve been seriously thinking about getting one. I think it would do 90% of the jobs I do.

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Old 03-05-2019, 12:43 AM   #15
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


Quote:
Originally Posted by Jay hole View Post
Iíve been seriously thinking about getting one. I think it would do 90% of the jobs I do.
Sales guy said to me let someone else pay depreciation so it had like 30 something hours, Ive got forks,land plane,tooth bucket and a mulch bucket and the auger and bits . I had this out on a 5 acre mini farm and did 125 holes and set posts in just shy of 8 hours
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Old 03-05-2019, 06:39 AM   #16
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Re: Advise On Equipment Purchasing Vs Renting For Post / Fence Company.


I would buy a dump trailer first. Make sure that it can haul whatever skid steer that you may buy in the future.

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