The Real Cost of Equipment Ownership
Feb 19, 2013
When it comes to making sound business decisions, understanding total cost of ownership can make or break the bottom line. We’ve all been there. You unfold the brochure and are romanced by striking photos and clever copywriting. You reach for your wallet and take the plunge, only to discover that the reality of that purchase is much different than your expectation. If it’s just trying a new office supply item gone wrong, the effects are minimal. If it’s a heavy equipment purchase gone wrong, the effects can be devastating to your business. The “Surprise” Effect
Most surprises in business are not welcome, unless it is birthday cake in the break room. Expenses related to the routine maintenance, repair, storage and transportation of your rental fleet can be hard to manage, especially if you don’t see them coming. The ripple effect of these “surprise” expenses can cripple the day-to-day operations. What systems do you have in place to keep the “surprise effect” in check? You need an infrastructure that gives you visibility to forecasted maintenance expenses, out-of-service notifications and “lost-opportunity” costs.
The “Hidden” Costs
Depreciation, obsolescence and compliance in your rental business are real issues that require serious consideration and attention. Do you really know the state of your equipment? Are you leasing out obsolete assets? Is your equipment up to code, local regulations or client required standards? Other hidden costs can include training and disposal at end-of-life. The items should be tracked, reported and available at your fingertips to make real-time business decisions that will separate you from your competition. How are you currently tracking these expenses, and do you actually know how much it costs you?
When it comes to your customers’ equipment needs, you provide an invaluable service with flexibility and cost certainty. Give yourself the same benefits by considering an inspHire solution today. Keep the “hidden surprises” in the break room, where they belong.
Do you know what your real cost of equipment ownership is? inspHire clients do.