Will My Business Benefit From Owning An Excavator
- Posted by:
- Admin
- Tags:
- Machinery, Equipment, Excavator, Excavators, Investment
- Posted date:
- 14-02-2023
Will my business benefit from owning an excavator? Ashley Plant Ltd offer excavator sales and exports throughout the UK. We look at why buying an excavator is a good investment and the contract work you can do with an excavator.
Is buying an excavator a good investment?
The choice of whether to buy or rent heavy-duty equipment can be challenging and requires plenty of thought.
For small, short-term projects, it is likely more straightforward and cost-effective to rent an excavator; however, those that frequently complete construction projects, new builds, renovations, clean-up jobs, etc., may consider investing in their own equipment as a substantial asset that can be sold or traded in the future.
As your construction business grows over time, expanding your fleet with efficient, high-quality plant machinery and trucks will become far easier and in your best interest when work begins to pick up speed.
Benefits of buying an excavator
Deciding whether to buy or hire construction equipment and large popular machines often causes dilemmas for many businesses and industries; the most significant factor it whittles down to is the money either option may cost.
Due to its complex outlay, you'll find that it requires immense consideration when purchasing heavy equipment like large excavators compared to mini excavators. No one in any industry wants to spend a large amount of money on anything for their business, especially a great asset if they know that it won't be widely utilised or reflect a positive return on investment.
We'll investigate whether purchasing your own company's excavator is a wise investment for your business compared to an excavator hire.
Availability
Access to the correct or most suitable equipment and excavation machinery available can make your project or last-minute jobs difficult to perform or could drag out the process, meaning an immense loss of income.
Those securing rented excavators are typically bound by a thorough contract, which allows for reasonable wiggle room for maintenance repairs or waiting for equipment to be delivered.
However, you may find that delays or mishaps can leave you with a lack of productivity and builders or workers with a lack of work to complete, which you can successfully avoid by buying an excavator that you or your company owns entirely.
Another pitfall of hiring you may be cautious of is that many digging machines will come with a specific due date to return the vehicle or machine.
When machines are booked to return, it means that the company will soon need them for another customer, so if you find yourself bogged down by a slow-pacing day or faults that need tending to, it can be challenging to ensure the plant equipment returns at the proper time. You could have to return it before your project or work is finished or pay a hefty fee for holding onto the machinery until completion.
Ongoing costs
When using either hired or owned heavy equipment, you must be aware of the maintenance and ongoing operating expenses you may be expected to pay.
On the one hand, should you own your excavator, you'll find that you have to search for servicing and regular maintenance, completing it however often necessary. However, those that hire machinery will find that their equipment is regularly maintained by those that rent them.
Plant-hired items aren't yours to damage, meaning if damage occurs due to misuse, you will be liable for its repair and maintenance costs as the customer. Both are undesirable scenarios; however, the benefits of having your own equipment always mean money is recycled as cost-effective investment revenue.
Suitability of equipment
You can sometimes be limited to what you can rent when hiring plant machinery; equipment hire is incredibly competitive, so the available products constantly change.
Companies and clients are always striving to provide customers with better and newer equipment and machinery to one-up their rivals; however, this tends to result in there being very little say or control over the large or compact excavators you can obtain through the hiring process.
Numerous hire companies utilise and rent older machines that might not be suitable to complete the traditional digging tasks at hand.
In buying the required new equipment that perfectly fits your job specifications, you can avoid a lack of availability, time-consuming delivery processes, and frequent hiring with a significant but cost-effective upfront price.
Product support
Good product support will result in a large investment. Professionals can efficiently take care of any issues or faults you experience with your compact size or extensive equipment and machinery, including all its necessary attachment versatility.
When purchasing brand-new machinery, you will always receive priority support from a hire company; however, as a renter, your experience is second best compared to the equipment, as it does not belong to you. When dealing with heavy-duty equipment, it is paramount that all machinery receives the best possible solutions, maintenance, replacements and aftercare and that you also get excellent customer service.
Eventual Return on Investment
Having your own excavator at your disposal will enable you and your workers to complete various project tasks much more effectively and at a faster rate. Moving heavy materials, dipping, and hauling materials can be achieved in no time, making the duration of your build or renovation shorter as there is less time waiting around for equipment to be delivered.
Hiring brand-new excavators can come with a broad range of technical issues and challenges, as your operators may not be familiar with the brand or model that is delivered, and they may operate it incorrectly, which could result in damage. Renting can mean booking and waiting extensive periods or waiting in line; however, with your own, you never need to extend your project to account for the waiting and assembly time.
Frequent rental of heavy equipment can be incredibly costly, especially in areas across your location where rental companies are thin and far between. So, to reduce or get rid entirely of the extensive prices you can expect to pay.
Another benefit of such investments is that you can control the duration and usage time, whereas hired excavators only provide you with a limited amount of time.
When you require machinery like excavators, it may be wiser and more profitable to avoid drastic, frequent hiring costs altogether by purchasing your own equipment that you can utilise and lend freely. In the UK, hiring an excavator costs approximately £339.00 plus VAT per day; however, prices will always vary depending on the machinery's size, brand and age.
A well-maintained excavator will offer around 10,000 hours of efficiency, which is also another feature you must consider when renting out and selling excavators for certain jobs or projects with adequate sales tax.
Using your own data, we highly recommend doing some math to calculate how much you're existing rental company issues you to pay, alongside how much the additional services and maintenance will cost in the end. Ensure that you use excavator machinery enough, so that purchase as extensive as your own personal equipment is justified.
Many entrepreneurs would encourage you to assess your company's long-term plans and whether it would be useful to have your own, as this can reduce and rid the need for costly hiring.
The most significant and rewarding aspect of owning an excavator is that it can provide you with numerous opportunities to make your life easier and help you save money.
Extending your wallet to hire a large piece of equipment like an excavator can be incredibly costly, especially if you venture out on numerous building and renovation projects for your home or other owned properties.
You'll find that with an efficient excavator in the best possible condition, you can provide fantastic contracting opportunities for numerous companies or one-off private jobs, granting you profits and lending your employees some extra work in the long run. Its proven performance is impressive and can provide a new revenue stream for your company.
There are plenty of examples wherein you can offer out your excavator to complete the following contract jobs and traditional roles:
Unloading and Loading jobs
Construction Work Land Prep
Cleaning Up Sites
Mining Work
Digging Holes for Ponds
You may be pleased to find out that there are opportunities available to rent out your equipment on days when it is not useful to you or members of staff; in doing so, you can make lots of money.
Such an opportunity comes with numerous risks and benefits, so it's best to do plenty of in-depth research before committing your excavation machinery to be hired out. It will often require you to have a qualified, competent operator that you can rely on to hire out, and you'll have to ensure your excavator is frequently tested and maintained by professionals.
Are you looking for Used Plant Equipment for Sale in Essex, Suffolk or throughout the UK?