Originally Posted by letsplay
That also drives me crazy that so many people on this site tell contractors to buy buy buy instead of rent equipment. If a guy asks should I buy or rent a skidsteer for a one month install at say 2000 dollars and several folks say stop wasting your money and buy........ But he only uses it for two small jobs a year. Goes back to your slowly going under and not knowing it. That rental looks a lot better a year down the road when you can't pay the rent.
My rule for landscape equipment purchases:
We will not buy a piece of equipment until we have "purchased" it in rental fees over the expected life of the machine.
Say we're talking about a cut off saw.
Cost to buy $900
Cost to rent $50/day
Avg saw life 4 years
If we didn't rent that saw for 18 days over a 4 year period, we won't buy it.
Now if I get into a lot of work, and don't see an end to the demand, I may go purchase that machine before I meet my own criteria. Say we're working on a big hardscape install that will take 10 days to complete and I have a job lined up right after that for 3-4 days worth of saw work. I may go out and buy it before I start the first job, only knowing that it will be paid for right away.
People that go out and buy a backhoe because they want/ think they need one are only asking for trouble. I see ad's online all the time for guys advertising "I just bought a new backhoe and need to keep it busy". Thats a straight line to failure. You need to have the work, and a justifiable amount of it before you buy something.