To buy, or to rent? What are the benefits of renting large scale cultivation equipment? These are two of the questions most businesses face when thinking about what equipment they need, and how often they would use that equipment.
Especially when considering large, expensive items of equipment.
There is always a financial consideration, and that will often be the deciding factor. However, there are several other benefits of renting large scale cultivation equipment over buying.
Here’s a look at some of those benefits, and how they might apply to your business:
5 Benefits of Renting Large Scale Cultivation Equipment
1. It's More Cost-Effective
Let’s start with the most important reason why hiring large scale cultivation equipment is almost always better than buying it; it’s more cost-effective.
There are a few ways and reasons you’ll save money by renting. These are:
No large upfront payment
Depending on the type of financing you arrange, you’ll probably need to put down a large down payment.
When you see rental prices being less than a payment for a new item, it’s an eyeopener. This helps businesses run leaner on cash flow and helps avoid incurring interest charges.
No monthly payments
The problem with monthly payments is that they’re fine when first arranged, but circumstances can change.
Making a one-off payment to rent some equipment and get the job done sounds a lot more appealing than being tied into a long-term financial arrangement, doesn’t it?
No maintenance costs
When you own equipment, you’re responsible for the maintenance costs. Which can really mount up, especially if repairs are required.
When you rent equipment, the company carries out all the maintenance. All you have to return it in the same condition as you borrowed it.
The “hidden” cost involved with owning equipment and machinery is depreciation. Every year you own the equipment, the value or potential sale price goes down.
When it’s time to upgrade to a newer model, you’ll find yourself in need of a large down payment again.
As you can see, unless you are using large scale cultivation equipment on a regular basis and are getting a lot of value from it, it’s going to be a lot less expensive to rent.
2. You'll Only Use Them a Few Times a Year
One reason why a lot of course owners rent large scale equipment is that they only need to use these machines and pieces of equipment a few times a year.
This ties into the cost-effective point raised above. However, there are also some practical benefits such as not having to store, maintain, insure, and protect the equipment.
If you have the equipment sitting idle, it’s costing you money. There are depreciation costs, maintenance costs, and so on. The less you use a piece of equipment, the lower the return on your investment.
3. You Have Access To the Latest Equipment
One of the best benefits of hiring is having access to the latest technology without a huge price tag. Rental companies stock a wide range of equipment and models, and you get to choose what you want to try.
This often includes the latest models and technology. Giving you the opportunity to use equipment your competitors are – or are not – using.
This is something that wouldn’t otherwise be possible. At least not from a financial standpoint if you were buying and upgrading your equipment.
The bottom line is that hiring gives you a chance to try different types of equipment without making a huge financial investment. It’s something to consider if you want to try-before-you-buy too.
4. It's Less Expensive Than Contracting Out the Work
This benefit applies to businesses that currently use contractors because they don’t own the equipment.
If you have staff trained in using the machinery you need, it’s going to be cheaper to rent the equipment and have your staff perform the work.
It’s also a more flexible option. You don’t need to work to a contractor’s availability, you can make a short-notice decision, and dare I say – you can ensure the work is carried out to a higher standard.
5. You Can Save a Lot of Time
Time is money, and there are two important aspects to how renting equipment over buying it saves you time;
The first is that obviously it’s a lot quicker to make a call or visit a company and rent a piece of equipment over buying it. That’s assuming they have exactly what you’re looking for off the shelf, of course.
If you need to carry out some work suddenly with a tight deadline, renting might be the only way you meet that deadline. Looking at it like this, it could turn out to be a lifesaver in some situations.
The second way it’ll save you time is the (lack of) general maintenance across the year or even the life of the item.
Generally speaking, the larger the equipment, the more maintenance and specialist attention it requires.
There is something to be said for the peace of mind that comes with not having to account for, maintain, and store large equipment. If you’re renting it, you simply use it then return it.