It is so competitive out there no matter what industry that you are involved in and so if you can get any kind of edge on your competitor then you should grab it with both hands. Everything boils down to profit margins and so you have to look at every baht that you spend and try to figure out if you can save money doing it some other way. Many business owners go through this dilemma and even though they know they need a piece of equipment or machinery, they are never really quite sure if they should buy it or rent it.
It makes a lot more sense to get a machine for rent (known as ให้เช่าเครื่องจักร in Thai) especially if it is a large piece of plant like a loader or an excavator. It doesn’t make sense to spend millions of baht purchasing this type of equipment outright if you’re not using it every single day. It makes a lot more financial sense to rent a machine for the duration that you need it and then give it back to the renter. If this sounds like a sensible proposition and you would like to find out more about the advantages of renting equipment rather than buying it then the following should help.
- You avoid the upfront investment needed – If you want to buy an expensive piece of machinery then you need to come up with the initial cost before you can purchase it. This is capital tied up in a machine that may take many years to recoup and so it makes a lot more sense to completely avoid the upfront investment altogether and just rent the machine for as long as you need it.
- It reduces your expenses – If you purchase a heavy piece of plant or machinery then someone has to service it and fix it if it breaks down. This is an expense that you can completely void when you just rent the machine that you need. If it does break down then you have nothing to worry about because the machine itself will be replaced or someone might quickly and repair it for you.
- No long-term commitments – If you do decide to buy a piece of machinery then it’s likely that you’re going to have to borrow the money in order to do so. This means that you’re paying money back over a period of 5 to 10 years and this ties up all of your extra capital. When you hire the machine for the day or longer then you are avoiding all of these long-term commitments and you just pay for the item when you use it.
Hopefully these three reasons have convinced you that it makes a lot more sense from a business point of view to hire a piece of machinery rather than purchasing it.