How to Save Money When Renting Heavy Equipment

There are a variety of factors that go into creating the budget for a construction project, and the cost of your heavy equipment is one of the most important expenses to factor in. Depending on the specifics of the jobs you typically take and your overall business model, it can often be more cost effective to rent heavy equipment than to buy it. The good news is there are a variety of ways you can save money on your heavy equipment rentals, allowing you to stay within a client’s budget while maximizing your profit margins on the jobs you take.

The following strategies will help you maximize your savings on heavy equipment rentals so that you can keep your costs at a manageable level.

Establish a Realistic Budget for Your Heavy Equipment Rentals

Before looking at specific strategies to reduce your overall rental costs, it’s important to establish a realistic budget for the equipment you’ll need for a specific project. This will ensure you account for all potential costs in your project bid, avoiding a situation where you lose money on a project if rental costs exceed your expectations. Then, you can use cost-cutting strategies to improve your profit margin and, in some instances, potentially make your bid a little more competitive.

When coming up with a budget for your heavy equipment rentals:

• Identify Your Equipment Needs – After evaluating the scope of the project, write out a detailed list of all the different tasks you’ll need to perform during each phase of the project. For each phase, write down the specific types of heavy equipment you’ll need. Make sure to specify the size of each machine you’ll need to optimize your productivity.
• Determine the Project Timeline – One of the biggest factors impacting the cost of heavy equipment rentals is the length of time you keep the equipment. If you know the project timeline, you’ll be able to accurately assess how long you’ll need to rent each piece of equipment required as part of the job. This will allow you to more accurately estimate rental costs.
• Talk to Your Crew Lead – Your crew lead will be an important resource to consult when establishing your rental budget. As the person in charge of using the equipment on the job site, your crew lead will be able to help you determine the right size equipment required for optimal efficiency. Your crew lead may also be able to recommend specific tools and technologies that will improve efficiency even further.
• Identify Attachments and Accessories – Often, you may need specific attachments and accessories to complete the job in the most efficient manner possible. Make sure you include the costs of these attachment and accessory rentals in your final budget.
• Plan for Contingencies – Even with the most careful planning, it’s unlikely that your project will go exactly according to plan. Equipment breakdowns, unexpected weather delays and other unforeseen obstacles can change your timeline and drive up your budget. Make sure you build a contingency fund into your rental budget to account for the unexpected issues that are an inevitable part of construction projects.

8 Strategies to Save Money on Heavy Equipment Rentals

Once you’ve established a realistic budget for your rental equipment, it’s time to evaluate ways to save money. The following strategies can help you reduce costs so that your rentals come in below budget, allowing you to maximize your profit margin.

Choose the Right Equipment for the Job

Choosing the right equipment for the job is not only essential to ensure the project gets completed properly and efficiently, but it will also impact your heavy equipment rental cost. When you rent the wrong equipment, it can potentially result in spending more money than necessary.

Some of the factors to consider in order to minimize your rental costs include:

• Equipment Type –The specific equipment you need is the most important factor driving the cost of your rentals. If you need specific makes and models, you may have to pay more than if you’re able to use any brand and model of the equipment you need. If you need specialized tools that aren’t readily available from most heavy equipment rental suppliers, you might be forced to pay a premium for these items as well. While there are certain instances when spending extra on specific brands, models or specialty equipment may be necessary, you can potentially save a significant amount of money if you’re able to avoid this.
• Equipment Size – You should always rent the proper size machinery to maximize the efficiency of your work. It’s never a good idea to rent a machine that is too small to address your specific needs and applications, since this will increase costs in other areas of your project. Similarly, renting equipment that is larger than you need will increase your rental costs unnecessarily.
• Technology – Newer equipment that leverages the most advanced technology will generally have higher rental costs. If you don’t need this technology to complete your project, you can potentially save money by renting older models with more basic technology. However, there may be some instances where renting the most advanced technology will save you money in the long run by improving efficiency, increasing productivity or lowering the risk of costs associated with safety issues. Understanding how to strike the right balance in the technology upgrades you truly need will help you keep your rental costs lower.

Plan Your Rental Period Wisely

Paying rental fees for idle equipment is one of the most common ways construction companies drive up their rental costs. Make sure you know exactly when you’ll need the equipment and only rent it for the specific time it’ll be in use.

Once you know your rental period, you can more effectively shop around for the best rates. Most heavy equipment rental dealers will offer daily, weekly and monthly rental options. Sometimes you might save money by choosing a longer rental duration, but this will only be worthwhile if you’re going to use the equipment for the vast majority of this longer rental period.

Plan Ahead

If you have multiple jobs lined up, you can often save money on heavy equipment rentals by looking beyond your current project and planning for the next two to three projects in advance. For example, if you’re going to need the same piece of equipment for back-to-back jobs, renting the equipment for the duration of both jobs can potentially save you money, even if there will be some downtime in between jobs. Some heavy equipment rental suppliers may offer a discounted rate for very long-term rentals, making it more affordable to hold onto the equipment during some idle time.

In addition, you’ll have peace of mind that the equipment you need will be available when you need it at the best possible price. If you rent the equipment for your first job, return it and then inquire about renting it again when the next project starts, you may find that your preferred dealer no longer has that machine available for your second project. Other rental dealers may charge more for the equipment, driving up the overall price for the two projects compared to what you would have paid if you had rented the machine for the entire duration from the initial dealer.

Seek Out Flexible Rental Terms and Return Your Equipment Once You’re Done

Many heavy equipment rental dealers will offer flexible rental terms where you have the ability to return the equipment earlier or later than the specified rental duration. This can be advantageous, especially in situations where there’s a chance your timeline may change mid-job. But these flexible rental arrangements are only beneficial if you take advantage of them by returning the equipment as soon as you’ve finished using it. If you hold the equipment longer than necessary, it will drive up costs and eliminate the potential savings associated with flexible terms.

Negotiate Rental Terms

You can often secure a more favorable rental rate by negotiating with your heavy equipment supplier. Some of the ways you can save money by negotiating rental terms include:

• Bundling Rentals – If you rent multiple pieces of heavy equipment from the same supplier, you can often negotiate a discounted rate for each machine.
• Flexible Rental Terms – Negotiating a flexible rental term can result in significant savings if you’re able to finish the project ahead of schedule.
• Off-Season Discounts – If you’re renting heavy equipment during off-peak months, ask about any special promotions or off-season discounts that can lead to significant savings.

Rent in Advance

Demand for certain types of heavy equipment can be high during peak seasons. If you wait too long to secure a rental, you may find that the equipment isn’t available when you need it, or you may encounter last-minute price hikes. Renting in advance can help you secure better rates and ensure the equipment is available when you need it.

Compare Rental Rates from Different Heavy Equipment Dealers

Always do your research when renting heavy equipment. Rental rates can vary significantly from dealer to dealer. Comparing rates from multiple suppliers will ensure you’re getting the best price. Consider factors such as delivery fees, maintenance coverage, transportation costs, and other add-ons that might drive up the price beyond what you were initially quoted.

In addition to getting multiple quotes, make sure you research the reputation of each heavy equipment dealer to speak with. Renting from the right dealer can help you secure the best rates and ensure you receive the proper levels of service that you need. When researching providers, make sure to evaluate:

• The dealer’s reputation
• Number of locations in their network
• Available inventory
• Maintenance protocol

Build a Relationship with One Heavy Equipment Dealer

If you need to rent heavy equipment on a regular basis, it’s often best to find a reputable dealer that you trust and then build a long-term relationship with that dealer. Building a relationship with one dealer allows them to get to know your needs better, and this can help them recommend the most cost-effective equipment for each project. This relationship can also potentially result in discounted loyalty rates over time, which can help improve your savings even more.

McClung-Logan Can Address Your Heavy Equipment Rental Needs

If you’re looking for heavy equipment rentals in the Mid-Atlantic region, McClung-Logan can address your needs. We’ve been the leading heavy equipment dealer in the region since 1939 due to our Simply Done Right Service™ Pledge that makes your business more profitable by going the extra mile for you. This exclusive pledge delivers a wide range of benefits, including:

• 24/7 assistance
• Extensive inventory on hand
• Communication in your preferred method (phone, text or email)
• Highly trained service team

Our extensive line of rental equipment includes the latest models of high-performance machinery from many of the leading brands in the industry, including:

• Volvo
• Takeuchi
• Mecalac
• Avant
• Dur-A-Lift
• Shuttlewagon
• Gradall
• Prinoth
• K-Tec

This list is by no means exhaustive. If you don’t see your preferred manufacturer above, give us a call to see if we carry their equipment. Our team will work closely with you to determine the best machinery to meet your specific needs, and we’re committed to helping you secure the best possible rental rates for the equipment you need.

Contact one of our ten branch locations to find out how we can supply the rental equipment you need. McClung-Logan is a full-service heavy equipment dealer serving the Mid-Atlantic Region.