Hi guys, Does anyone know how much of a percentage does rental yard make on their machine rentals? Or how they structure their lease/financing terms with the wholesalers? A relative of mine is in the mobile light tower business (manufacturing/importing) and wants me to help him rent out his light towers to the local and regional rental yard. What would be a reasonable wholesale price to ask for? If the local retail price is like the following: Day Rate $110.00 Week Rate $440.00 Month Rate $1,320.00 Thanks so much!
Lots do 60% to the owner of the machine 40% to the person who gets it rented. The details are numerous, Who pays for maintenance? Who is liable for major repairs or breakage etc. Who insures it etc. etc. etc.
I would be pretty sure if the owner only got 60% of the rental rate he would have zero liability for any repairs. He would expect a "like new" machine at the end of a rental/lease term which i would think would not exceed 1 year maybe 2. I am also very interested in this topic........TIO
So when the rental yard renting out no machines/no contractors renting it, then the owner gets nothing and the machines are just sitting in the yard? By the way, how does the owner keep track if the rental yard rent it out or not? or is it just a "honor system" when it comes to revenue sharing?
gps tracking allows you to follow what hired equipment is doing if your customer requests to stand down for a union "day off" say a monday as part of RDO scheme your office can follow up and ensure machine was not use there by customer honored the stand down or if machine is hired out based on 5 day week can follow up that machine is used 5 days not 7 you can trace machinery hours of use and therefore allow for correct service interval and IF stolen you can almost follow machine around depending on your gps technology
what kind of price does that add to a machine? on a dozer, grader, etc. it could be beneficial but on less expensive equipment would it be worth it?
not sure of the cost im from australia so my cost would different to yours i know it takes between half an hour to an hour to fit one depending on how good you want to hide it id say on any plant big enough for a operator to sit on is big enough for a gps if its pinched it may be gone forever or damaged beyond repair and it takes time to replace the plant if u can just go to its location and pick it up its saved a lot of downtime