Businesses large and small have all had to deal with the headache of sourcing equipment for permanent or temporary use. Whether you’re just starting out or you’ve been in the game for quite some time, equipment sourcing will (at some point) sneak up and bite you in the butt. Sure, you could buy equipment, but why spend hundreds, thousands, or even hundreds of thousands of dollars on equipment when you could rent or lease it for a FRACTION of the price?
That’s where we come in. KWIPPED is an equipment rental marketplace for businesses just like yours! We have assembled a global network of suppliers from 28 unique industries, including 500 product categories, who rent equipment. We rent everything from laboratory equipment, to AV & film equipment, to farm balers. In our experience, we have found that the most common issue a KWIPPED renter grapples with is deciding whether to rent or purchase. Most will instinctively rely on simple financial analysis to aid in the decision, but often overlook other important factors.
Here are 34 reasons you should rent equipment instead of purchasing equipment!
- You need equipment in different locations.
Let’s say you are a traveling circus. Would you rather transport your heavy equipment from city to city, country to country, or would you rather have it conveniently arrive at your performance location unpacked and ready to go? If you were to transport it yourself, you’d also have to have some method of transportation, like a truck or a trailer, at the ready, and you’d need extra people on hand to drive the truck/trailer and unload and load it. That’s not only a logistical headache, but it could be a financial one as well. Renting equipment allows you the financial and logistical convenience of having the supplier ship the equipment to you, whether you’re in Cameroon or Kalamazoo.
2. You want the latest technology
When you purchase an ultrasound, you’re spending upwards of $20,000 for something that you would ultimately like to keep for the longest amount of time, so as to avoid spending $20,000 in another year or two. But what if another model comes out, with more features and technology than the one you just purchased? Renting equipment allows the user to frequently change or update the equipment to the newest model. This is particularly great if your business has high-net-worth competitors, who can actually afford to purchase those newer machines. Because you rent your equipment, you have a competitive edge, and you’re saving money!
3. You do not have the resources to repair or maintain the equipment
Who do you call when your machine breaks? Can you afford to fix it if your machine breaks? Do you have maintenance or repair staff in your business or do you need to outsource that work? If you answered “no” or “I don’t know” to either of those questions, you should probably be renting. Rentals are fixed and maintained by the supplier, so you won’t have to worry about those costs or doing the legwork to find someone to maintain or repair it!
4. The cost of maintenance is too high
5. You require operators or a service from the rental company to use the equipment
6. The equipment is being used for an experimental line of business with an uncertain long-term outlook
What if you’re running a clinical trial? What if you’re a restaurant owner who wants to try out a new menu item that requires a specific piece of equipment, but you’re not sure how well it will sell? Through renting, you’re able to experiment in new industries, discover new findings, and dabble in new projects without a long-term financial commitment to your equipment or project.
7. You want to trial the equipment to make sure it suits your application before you purchase
Picture this: You just purchased a new portable x-ray for your mobile dentistry unit. It comes in the mail, you open it up, and on top there’s a big warning that says, “WARNING: NOT FOR USE WITH PORTABLE TRAILERS”. That’s a bummer. If you rent the equipment through KWIPPED, you can actually message back and forth with suppliers who have that piece of equipment and ask them specific questions related to usage, application, features, and more. This way, you’re getting an expert to tell you exactly which model of equipment is the best for you!
8. You can pass the cost of the rental onto your customer
When you purchase an expensive piece of equipment, it may take months or even years if you’re a small business for your equipment to pay for itself in revenue. However, if you rent equipment, your equipment can pay for itself in just ONE PROJECT. If you quote your client $3,000 to complete a project and you’re renting a piece of equipment for $200 a month and you use it for that project, you’ve already paid for that equipment through the completion of the project. Even better, you can include the cost of your rental in quotes you send out to your own customers, effectively financing your equipment needs!
9. You want access to a wide variety of equipment solutions
If you run a business that uses a wide variety of equipment, why not come to one place to get all of it? KWIPPED has just about every piece of equipment you can think of, and our categories and equipment numbers are growing every day. For example, let’s say you want 7 different pieces of equipment. Instead of communicating with 7 individual companies in each of these industries, filling out 7 rental agreements, negotiating back and forth on 7 different contracts, and deciphering 7 different shipping, insurance, and replacement terms, you can just go to KWIPPED. We have a standardized rental agreement so you won’t have to reinvent the wheel every time you rent a piece of equipment. Plus, you can compare quotes to make sure that you’re getting the absolute best deal!
10. You need to preserve operating capital
11. You have to mitigate equipment usage cycles
12. You don’t have storage facilities for the equipment
We get it. Not every business owner has a 10,000 square foot warehouse in which to keep all of their equipment. With KWIPPED rentals, you only use the equipment for as long as you need it or as long as you have somewhere to store it. This is great for seasonal businesses as well, as you don’t have to find and pay for a storage unit to store your equipment until your next profitable season.
13. You know the exact cost of the equipment to your business and do not have to allocate costs associated with depreciation, maintenance, facilities, labor, repair, transportation, calibration, and other expenses of owned equipment
If accounting and finance is something you aren’t a professional at, rentals are ideal for you. You have one set cost for the rental, and that’s it. You won’t have to calculate depreciation, consider maintenance or any other “associated costs”. All you need to worry about it is the actual price you pay for the equipment per month, and the suppliers worry about those other annoying numbers.
14. You do not have the time or means to sell purchased equipment at the end of it’s useful life
Do you know why so many people put “FREE MATTRESS” postings on the internet? Because they really really really don’t want to have to find a buyer, move them, and do the legwork themselves.
At larger companies, purchasing is handled by a specific person, or sometimes, an entire department. Small businesses often purchase equipment through their salespeople or even their owners. But how many companies do you know that have a department or person dedicated to getting rid of old equipment? Not many. Salespeople know that it’s a full-time job to find the right buyer, in the right place at the right time. It can be especially hard to sell equipment when your model isn’t the newest or shiniest, or if you want to make a decent profit on it. If you rent your equipment, you don’t have to worry about what to do with it when you’re done using it; you just send it back to the supplier and they figure it out!
15. Owned equipment becomes obsolete with no market for used equipment at the end of it’s useful life
The problem with purchasing, especially expensive, equipment is depreciation. When you’ve reached the end of usable life of your piece of equipment, your equipment has no value. Now what? You spent all this money on your equipment only for it to become obsolete at the end of its usage. Renting gives you the freedom to simply end the rental when you are finished using the equipment, and you don’t have to worry about the upfront cost or depreciation of the equipment.
16. You are assured the best equipment for the job
KWIPPED staff personally qualifies every rental to ensure that you are getting the absolute best piece of equipment for your project, job, or business. They’ll take note of your needs, ask you questions about your specific usage of the equipment, and shoot that information out to our network of suppliers who will recommend the best possible solution for you. If that’s not enough, you can message directly with suppliers through our platform to ensure that you are getting advice directly from equipment experts on usage, application, and industry competition to ensure that you have the best deal!
17. You don’t have to pay any property tax
If you don’t own it, you don’t have to pay property tax on it. Fair and simple.
18. You will have a lower assets to liabilities ratio which increases your borrowing power
Oh accounting. Everyone’s favorite subject, right? Not really. Anyways, it’s important as a business owner to have more money than you owe, as it increases your chances to get a competitive loan to improve your business. Purchasing equipment, while it may sometimes be payable via a payment plan or financing, is often a cost that business owners will need to pay large sums upfront for, often times on a credit card or through loans. This is horrible for your borrowing power and if you miss a payment, it can even be detrimental to your credit. Rentals allow you to pay a little each month for as long as you need the equipment, allowing you to have more money in your pocket and less money owed.
19. Renting is quicker than purchasing and can save you time
Purchasing and sourcing large (or even small) equipment can be a long and arduous process. It could take weeks or even months to get the equipment you need because of the amount of back-and-forth between companies, departments, and you. But what if you need your equipment for a music festival this weekend? KWIPPED suppliers typically return quotes within 24 hours to remain competitive with each other, allowing you to compare quotes, select the best one for your need, and get your job done as quickly as possible!
20. Rental contracts are flexible, short, and absent on long-term commitments
Rental contracts are so much easier to negotiate than purchase contracts. Suppliers of rentals want to move equipment quickly, so they’re willing to work with you on the terms of your contract, shipping, and the length of the rental. Because rentals are so flexible, you can easily extend your rental or cut it short based on your need. Because you don’t own the equipment, you don’t have a long-term commitment to deal with and you can easily switch out models, change suppliers, or use a completely different kind of equipment depending on your need!
21. You will avoid license and registration costs associated with owning
22. Renting offers flexibility to perform projects of various sizes
If you can only do small projects or large projects because of your current equipment capabilities, you’re ultimately losing revenue. Renting allows you to get the equipment you need, when you need it. Let’s say you have a client or a job with a particular need where the cost of purchasing the equipment to fulfill that client or job’s need will outweigh the profit you will make on the project. Obviously, you would have to turn down the client or job, which ultimately helps your competition and causes you to lose revenue opportunities. Renting equipment allows you to get the stuff you need to get the job done, in turn allowing you to accept more jobs and help more of your customers!
23. You can quickly respond to urgent needs or disaster scenarios
Imagine this: you are a school. Your defibrillator stops working. What are you going to do? What if you need it to save a child’s life? You can rent one, and in most cases, get it within a few days.
24. Renting allows you to standardize your infrastructure with consistent makes and models.
It can be really expensive to own the same brand, model year, and component parts of every piece of equipment you use in order to ensure operation compatibility and consistency. If you rent one or more pieces of your equipment, you can afford to have the same model, brand and features across all your devices!
25. Renting offers multiple sources of supply, reducing dependency on any one vendor
Because KWIPPED is a marketplace-based platform, you get the best deal! When you submit a Request For Quotes on KWIPPED’s website, our staff shoots your request out to our network of over 700 reputable and trusted equipment suppliers. Those suppliers then return custom quotes to you based on your needs, and you can compare those quotes side-by-side! This is great for business owners, because A) you don’t have to scour the internet looking for the best price on a particular piece of equipment B) most of our suppliers only agree to rent through us, so you would only find their rentals on our website, and C) you don’t have to depend on one supplier to rent you the equipment.
Supplier dependency can be problematic, especially if they don’t have the equipment you need to rent available when you need it. They may also only carry one brand of equipment, or not have the resources to constantly supply you with the newest models of equipment, either.
26. You will be assured all equipment conforms to safety and compliance regulations
When you rent equipment through KWIPPED, you can be sure that your equipment meets the highest operational standards and conforms to all safety and compliance regulations. HOW??
27. You will reduce insurance expense
When you purchase a piece of equipment, you will need to purchase insurance for that item. When you rent an item,
28. You will avoid blanket liens that effect other assets
29. Rent is tax deductible
Many small business owners rely on tax benefits to make their business profitable, let alone operable. The great thing about renting equipment is that it is tax-deductible!
30. Renting can offer equipment redundancy for mission critical applications
31. Insurance may cover the cost of the rental
In the case of healthcare especially, insurance will typically cover the entire cost of the rental, whereas it won’t cover the cost of the purchase of the equipment. Items like wheelchairs, CPAP machines, and other medical equipment rentals are covered under most insurance plans.
32. Rentals may include kits, software or equipment combinations that are not available for purchase