Equipment Buying: Get the Most Bang for Your Buck

Starting a business can be expensive, and part of those costs include buying the equipment employees need to do the job right. For cleaning and restoration professionals, some basic needs include a moisture meter, service van, a truck mount extraction unit, dehumidifiers and fans. When they start out, many have only a few pieces of equipment, but as their business needs expand, so too should the tools in their arsenal.

According to Jeremy Reets of Reets Drying Academy, business owners should buy enough equipment “to do one good-sized job.” He notes that the rent versus buy question usually arises during a storm or a similar event, where there is a lot of work coming in and the company does not have enough equipment. Reets says a company should only buy more equipment if they need more equipment on a regular basis. Buying only the equipment they need and renting the balance needed for a large project will give them the best opportunity to make the most money on that particular event.

Establish a Rental Agreement Early

Reets says firms should consider renting equipment if they get a large project or multiple jobs. He recommends establishing a rental relationship early on so they will be ready when they need to rent equipment. During a CAT job, restoration equipment will be rented or sold out fast, making it important to have an account established early on so they can act quickly.

Patrick Choma of Herc Rentals says, “Restoration contractors who rent the most equipment early can usually find the best availability, and will then have the opportunity to use the equipment on many jobs — potentially using the same piece of equipment for several weeks, or months, continuously as they contract new work.” He emphasizes the benefit of having a relationship with a rental company prior to a major loss. “First and foremost, partnering with the right equipment rental company will ensure that the restoration contractors’ customers will get the equipment and service they need precisely when they need it,” Choma says. “The right equipment rental company is one who has the industry’s best, highest performing and innovative products, along with a commitment to acting as a true partner, not just a supplier.”

When to Buy

Before purchasing new equipment, cleaning and restoration firms should make several considerations, such as the lifetime cost of ownership. This includes not only the initial purchase price, ongoing maintenance and worker training, but also the cleaning effectiveness, ease of operation and maintenance, speed of repair, productivity rates, multipurpose efficiency, transportability and customizability of the equipment.

Before making an equipment financing decision, business owners should ask themselves:

1. How long do they plan to keep the equipment?
2. How else would they use the money if they did not have monthly equipment payments?
3. Do they have cash set aside for business emergencies?
4. How will this investment improve their business operations?
5. Do they need this equipment on a regular or short-term basis?

Manage Your Inventory

Once cleaning and restoration professionals have the equipment they need, they should consider inventory tracking tools that can help them optimize their resources and effectively manage their inventories. These systems will help them keep tabs on the location of their equipment; the quantity, age and in-service/out-service status of each piece of equipment; date purchased, serial numbers and maintenance records; and provide tools to help them keep their equipment in working order.

Ultimately, experts suggest only purchasing more equipment when there is a business case to do so. Even if a major hurricane causes a spike in business, companies should make risk-based financial decisions on equipment purchases. Organic growth spurred by strategic investments can lead to greater profitability down the road.