Anybody who has been in the construction space knows how expensive tools can be. For example, the price of a used excavator ranges anywhere between £30,000 and £150,000. Professional builders might justify these price tags, but most people opt to hire equipment for a weekly, daily or hourly fee.
Here are three things to consider when looking to start a construction tool hire business.
Know Your Target Market
The biggest clients in any tool hire business will always be trade customers. These are often small building companies with client projects that need specialized equipment. Before buying any expensive equipment, make sure several small builders are operating locally. It is also a good idea to find out the type of equipment your competition is rocking. This info will help you know what works and what doesn’t.
Get the Pricing Right
Pricing can make or break your business, especially when dealing with motorized equipment. You have to factor in insurance, maintenance, parking fees, fuel and salaries when pricing your services. Then there is the issue of transportation – will you bill delivery fees for bulky equipment like cement mixers? If so, how much are you willing to charge?
It is also essential to keep in mind that not all tools are winners. Some will always be out in the field, while others will remain idle most of the time. Price the less popular equipment higher so they will be worthwhile to keep in stock.
Promote the Business
Advertising your business to targeted customers is the easiest way to get the ball rolling. Start by finding all the relevant trade people in your area and let them know your service. The idea is to be innovative with your services and marketing. Once you have a few customers, be sure to offer them quality services and excellent customer support in exchange for positive reviews.