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Equipment Rental company ... starting one

Discussion in 'General Industry Questions' started by imjustdave, Apr 30, 2007.

  1. digger242j

    digger242j Administrator

    Joined:
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    Occupation:
    Self employed excavator
    Location:
    Southwestern PA
    Question--do you charge for repairs due to customer's abuse at a for profit rate, the same as if your service people were repairing a machine for somebody else, or do you just pass the direct and indirect costs on the the customer?
     
  2. LowBoy

    LowBoy Senior Member

    Joined:
    Nov 23, 2006
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    Occupation:
    Owner, Iron Mountain Iron & Equipment (Transport)
    Location:
    Southern Vt. on the Mass./NH borders
    We charge a "profit rate" of the current shop rate. We also have posted conspicuously in the store a sign which states "Any rentals returned dirty will be charged a $75.00/hr. cleaning fee." Any machine returned with less fuel than it left with which is usually full, gets a service charge of $5.00/gallon.

    "Dirty" pertains primarily to undercarriages that need to be shoveled out, and cab interiors is another popular one. People seem to aquire a bit of "energy" that rent from us when it comes to returning clean pieces of equipment. I have had to wait on several occasions for customers to hose off the floormat of dozers and excavators, because they didn't like that last $150.00 cleaning charge from us.

    Those two small rules have proven positive for our company, and we are adament about it. If it's a repeat/good customer, a lot of the small stuff can be brushed off. I had one :cussing jerk that gave me a hard time upon picking up a rented 315C excavator from his sloppy, muddy site. I had the trailer all broken apart on the paved portion of this new subdivision,(paved with first coat of 1/2 binder, not topped yet,) and had plywood down so I wouldn't mark the asphalt while loading, and he got loud and made me put it all back together and back into a swill-hole of clay and topsoil for me to wallow around in to load and secure the machine. Had I stayed up on the hottop, the tracks would have stayed clean. Did it HIS way, and he paid "dearly" for that lack of common sense decision...:naughty

    We won.
     
  3. thejdman04

    thejdman04 Senior Member

    Joined:
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    Location:
    Illinois
    The problem is, guys that pay w/credit cards deny charges, pay w/check and it bounces, or isnt for enough, guy pays w/cash and then your done too. Guy pays w/check, says hell return it full of fuel, doesnt and 40 gals and 3 bucks a gallon, the machine rental is 250 you just lost your behind. I wouldnt recommendd doing it its crazy. Just today we had a guy reserved and told us he wanted the machine for 3 days. fine. We had it booked back to back. The next rental should have been today the new next rental was for 2 months, nto something you want to pass up. the guy called us saying he needed it, we told him we coudlnt accomedate that right now(only one of those machiens) he was calling us every name, telling us to lick and do vulgar things to him, he was gonna sue us lock the machine behind his fence so we couldnt get it. He was gonna call the cops for tresspassing if we came to get it. We didnt have a signed contract (for specified number of days) so coudlnt really report it stolen(customer not home on delivery). There are tons of downs to rental industries
     
  4. OKYLE

    OKYLE Well-Known Member

    Joined:
    May 15, 2007
    Messages:
    47
    Location:
    Illinois south of chicago
    I dont know if any equipment rental places actually do this or not.

    But if i owned one, I would purposely change the maximum rpms the engines would put out. probably hold it back 20% or so, that way if Joe Dirt goes to beat the crap outta it, he wont beat the crap outta it with full power :/

    I would also venture to say that would help the engines survive the constant rapings they receive by being shutdown without any time to cool off a bit.

    If the guy bitches about the thing being underpowered, you just tell him get the next size up.

    Win Win.
     
    Last edited: May 16, 2007
  5. Countryboy

    Countryboy Senior Member

    Joined:
    Jun 8, 2006
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    3,276
    Occupation:
    Load Out Tech. / Heavy Equipment Operator / Locomo
    Location:
    Georgia
    Welcome to HEF OKYLE! :drinkup
     
  6. OKYLE

    OKYLE Well-Known Member

    Joined:
    May 15, 2007
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    Location:
    Illinois south of chicago
    thanks glad i found it, Nice looking forum.
     
  7. thejdman04

    thejdman04 Senior Member

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    Location:
    Illinois
    :beatsme
    Very very true, 99% of guys put it at full throttle before turning the key over, so they dont waste any time on thec lock warming up or cooling down. I know my boss would gladly give you an extra hour on the meter if you let his machnine cool down rather then shtting it off every 10 seconds to save time on the hour meter but if youg ave the customer 9 hours on the machine instead of 8 that doesnt mean hed let it cool down any just give them an extra hour to use it.
     
  8. OKYLE

    OKYLE Well-Known Member

    Joined:
    May 15, 2007
    Messages:
    47
    Location:
    Illinois south of chicago


    :Banghead :Banghead

    Yup, i do hate people that dont have to make payments and you let use your equipment, I truthfully couldnt stand doing a rental business, well maybe, if the money was really really really good. It would tear me up having to fix the smallest things that could have been avoided if they took the time to be a little aware of the area they are working in.

    I used to be a really nice guy with my machinery, you know the type, Loaned it out to friends to use for a few days, and they cover the fuel and a couple cases of beer. No problem... yea I think we all know how it goes before our cherry gets popped on that situation.

    It was probably being "loaned" out for the 4th time or so before a guy abused it.

    Eventually some .... "friend" abused the machine, he must have picked up my machine, put it on a plane, Shipped it to fuxxin the Amazon Forest, and tried to clear the whole damn thing.

    I lent it to him on Friday, I got it back sunday.

    On friday it had 4 headlight, 2 back up lights, and a full tank of fuel. All cleaned up, ready to work. Nothing wrong etc etc.

    When I got it back on Sunday it had No headlights (well... they were there, except they were all snapped off and hanging by wires), 1 Backup light, and a 1/4 tank of fuel :mad:

    Along with tree branches hung all up all over it, stuck in every orifice my poor baby had , Covered in Mud, he must have gotten it stuck up to the axles in a mud hole (580 c backhoe) !:mad:

    The guy I loaned it to said all the lights were already broken / didnt work when he got it so they didnt matter.....

    For some reason thats the worst part about what happened, I cant stand liars, and people that try to put down the value of things.

    :Banghead I felt like killing him.

    im sure you guys know how it goes if you ever loaned equipment to ungrateful bastards. That was the end of that. Havent loaned equipment for 10 years to anyone, UNLESS they hire ME to operate it. thats the only way ill let anyone "use" my equipment.

    If so called friends will abuse your equipment like that and then lie about the damage done, then what will a complete stranger do? :beatsme

    meh:drinkup
     
    Last edited: May 17, 2007
  9. thejdman04

    thejdman04 Senior Member

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    Location:
    Illinois
    :beatsme We got an excavator back today, literally the whole engine compartment was filled w/mud (dont know how it ran seriulsy), said he backed up and the w hole machine sunk. Also he ha=d a 36" bucket on it, all the teeth, and where you mount them were broke. The bucket is junk. and the back fill blade is bent, sometimes you wonder how the heck. Weve had debris (never ever ever rent a machine out w/a thumb) shoved into cylinders, glass on cabs. People dont shut the doors on machines, get swinging in transit, glass breaks,frames twisted etc etc:pointhead I could right a book. You get lots of guys who care, who tray and others who purposly rent cause htey want soemthing to abuse beat.
     
  10. OKYLE

    OKYLE Well-Known Member

    Joined:
    May 15, 2007
    Messages:
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    Location:
    Illinois south of chicago
    heh when i bought my Daewoo skid steer, it was owned by a rental company and put up for auction Got it on the cheap for 4k when it was only 3 years old (1997 bought it in 2000)

    a couple days after buying the thing, i figured out it was from Georgia.

    not from anyone that knew where the Skid steer was from, Just because of what i found inside it...

    Georgia Red Clay. lol, some guy got that Skidsteer so stuck... there was mud stuck halfway up the engine area, surrounding it, when i went to go give it a deep cleaning i spent 2-3 days buried up to my elbows trying to pull out this mud , branches, etc out from the engine area.

    I dont know if the rental company just didnt clean the skidsteer the whole time they had it or what, but im sure the engine runs 100 degree's cooler without that extra layer of mud surrounding the block and hydraulics units.

    Oddly enough this skid steer has NEVER given me any problems in the 7 years ive owned it..
     
  11. thejdman04

    thejdman04 Senior Member

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    Location:
    Illinois
    you got very liucky if they havent given you any problems. Usually skids and other machines that come from say united, rsc, hertz etc are usually in a better shape then ones from the ma and pa rental stores. Not always but most of the time. Most of the time united rsc etc rent to more the contractor etc who at least has some experience on the machine. Not the hairy the homeowner.
     
  12. ClevelandPusher

    ClevelandPusher Member

    Joined:
    May 26, 2010
    Messages:
    8
    Location:
    Michigan
    I'll rent from you or anyone else - in Ohio

    I think it's a great idea. Did you end up doing it? I know i'm about 4 years late on the thread, but I'm looking to rent right now in Ohio and can't find anyone willing to rent a loader.
     
  13. imjustdave

    imjustdave Well-Known Member

    Joined:
    Mar 17, 2006
    Messages:
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    Location:
    WA State
    ClevelandPusher

    Nope never did start a rental company ...but I deffenatly learned a lot in the past 4 years about running a buisness, Excavation, concrete, ETC. With the economy now unless its paid for I don't see anyone surviving well. But this does bring up an interesting idea... In the past 2 years most of the rental buiness in my area have closed, United, Hertz, ETC ... the small mom and pop shops 1 -2 stores are still around. So it makes you go hmmmm when the economy does spring back would it be worth it then??? Or would it just be better to open a bait shop up in New Orleans :) LOL

    I recon time will tell.
     
  14. wolf44

    wolf44 Well-Known Member

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    Location:
    Atlanta, Ga
    What a guy! sinks it and leaves town.
     
  15. ClevelandPusher

    ClevelandPusher Member

    Joined:
    May 26, 2010
    Messages:
    8
    Location:
    Michigan
    Instead of the bait shop, buy a boat with a skimmer and start collecting oil down there. $65 bucks per barrell you fill. :beatsme
     
  16. imjustdave

    imjustdave Well-Known Member

    Joined:
    Mar 17, 2006
    Messages:
    56
    Location:
    WA State
    Actually I remember that Excavator sinking.... Honeslty I think the rental yard and delivery driver should have mentioned that
    A this machine is heavy and
    B If it sinks its your issue not ours.

    Kind of as a cover there ass kind of thing in writing and verbal.

    Reason I say that is the area that it was being used in is a marsh, soggy, wet, soft area... I was surprised to hear about it but I wasn't exactly surprised it sank eithor. The highway in that area is elevated, and on a bunch of pillings, so is the main water line for the next town over, must be 8 foot in diameter and 2 or 3 of them if I remember right. Its basically a low area about 5 miles wide between 2 Higher towns with a river running near by. And maybe 20 homes... Its a marsh and allways wet, its not rocket science.

    Now I can't say what the rental company did when they heard it sinking or if the guy knew it was sinking still but I recall a large crane and a few excavators, and Mats were brought in to retrieve it from the mud.
     
    Last edited: May 26, 2010