Originally Posted by MarcSmith
The key being that if you get enough work... then it makes sense to buy...I rented a power washer for one job... made boat loads of money on the job, and then I went out a bought one... if i were to rent a machine its going to cost 250, plus markup= 325. and then my labor for the day ends up being about 22 bucks an hour to equal your 500 bucks a day...or I don't mark up the labor and I end up getting 31 an hour to be competitive..still way to low. and If I owned the equipment I be making more money...but..I have costs associated with that equipment that i don't have while I'm renting it...
The key is to know your customer and know your job...if its a no bid situation then you can and should mark up but if its a job that you see yourself doing more and more of, at some point you should consider buying..
I understand what you are saying but when over 10% of the workforce is unemployed and people are slow all over the place it is tough to nickel and dime on something that costs you nothing to run. I believe you should charge for your time picking up and dropping off and a small mark-up if you can but 30-40% mark-up plus a decent hourly wage will likely price you out of some jobs. I am not opposed to marking up equipment if you can get it but I think you will find that more often than not you will price yourself out of the market.
My costs for the equipment are factored in. If I call it $150 a day for fuel, maintenance and operating costs I am still at @$45 per hour, plus mark up on materials and labor. That piece of equipment costs you nothing more than the rental rate....there is no risk. The majority of my equipment is payed for other than a truck and a mower that I got zero percent on and it will be payed before the promotion is over so I think that $150 is likely much higher than the actual cost to me. To each his own I guess, Its not that I totally disagree with you, I think it looks good on paper. Its kind of like buying a car. Does it really matter what the trade is...if the dealer says he's giving you 10 grand for a 2 thousand dollar truck and jacks up the price of the new truck...whats the difference. If you can make your hourly rate and land a job without marking up the machine which essentially costs you no more than the rental rate I think you come out ahead.