How to Start a Trailer Rental Business: A Beginner’s Guide

As the name implies, utility trailers can come in handy. Even a pickup truck with a sizable bed may not be large enough or offer the convenient loading and unloading needed to meet the owner’s needs.

A utility trailer, however, easily hooks to the tow hitch and has a platform lower to the ground, making it easier to load and haul trash, furniture and appliances, lawn care equipment, smaller vehicles (motorcycles, jet skis, etc.), camping and sports gear, livestock, and more. 

Utility trailers can be open or closed, depending on need, and having the right one can make any number of jobs easier.

Of course, they can be a rather expensive purchase for the average consumer or a business, ranging from several hundred to several thousand dollars. 

Additionally, they take up valuable storage space when not in use. Many people would rather rent a trailer as needed and forego the expense and potential hassle of ownership.

If you’re looking to start a trailer rental business, you might be surprised to learn that entry costs aren’t astronomical. Your area could have a significant market for such rentals if you know which demographics to cater to. 

With the right preparation, you’ll have the best chance to make your utility trailer rental business a success.

Learn as Much as You Can About the Trailer Rental Industry

The first thing you’ll want to consider before starting your rental business is what trailers are, what they’re used for, and what different kinds exist.

Start by researching different types of utility trailers and what they’re used for. Understand the costs, uses, benefits, and limitations of a range of products.

You also need to understand what individuals and businesses in your area would want to rent trailers for. 

If you live in an agricultural area, moving livestock could be a significant market, whereas an upscale area might require a lot of yard maintenance, spurring rentals from local landscaping businesses. 

If you live in an urban area with a lot of population turnover, you could get clients who are interested in moving furniture and appliances.

Consider your fee strategy — hourly rates, day rates, long-term rentals — and calculate how long it will take to recoup startup costs before turning a profit. Make sure to factor in overhead like registration and insurance, maintenance, and leasing costs for a storefront/storage, as well as any employees you may retain. 

The list goes on, but understanding your products, expenses, potential income, and customer base are important initial considerations.

Evaluate Local Market Demand and Competition

Before getting into the specifics of how to start a trailer rental business, you need to research the local market and make sure there’s room for your business to thrive. 

While a higher population could equate to higher demand, rural areas can also represent a significant market for utility trailer rentals, where they’re used to haul feed, livestock, farm equipment, and other supplies.

This is why market research is crucial. You need to determine not only who your customers might be but also the relative volume of demand. It may vary by season. You need to know these details to determine whether your business is viable.

Don’t forget that you might not be the only one interested in filling a demand for utility trailer rental. You need to do competitive research to find out how many other businesses offer similar products for rent. 

You may have a lot of competition or a little, but when you see what others are offering, you could find an untapped niche and set competitive rates to build your business.

Determine How Much Starting Capital You Need to Launch Your Business

The highest potential upfront cost of starting this business is the utility trailers, which could range in price from about a thousand dollars for small open trailers to tens of thousands of dollars for a horse trailer. Remember that you can charge significantly higher rental fees for more expensive trailer types.

Generally speaking, if you purchase smaller open trailers, you could get your business off the ground with a handful of utility trailers for maybe $15,000 to $20,000. You might, for example, purchase six 5 ft x 8 ft open trailers at roughly $1,500 each, or about $9,000. 

Don’t forget to factor in additional equipment rental costs like registration (if required in your state) and insurance.

Because trailers aren’t motorized, auto insurance may not be required. However, it’s always wise to insure your property against damage or theft. You could also require renters to take on liability or pay an additional fee for insurance coverage while the trailer is in their possession.

Add in the cost to lease a small business office with a one-year lease agreement and dedicated parking to store trailers. This cost will vary by location, of course. 

You may not need employees in the beginning if you’re planning to run everything yourself, but you will need to factor in costs for a DBA: setting up a corporate structure (LLC or other), marketing, signage, office furniture, computers, software, and so on.

Choose a Business Name and Domain Name

Once you’ve completed the necessary research into the market and startup expenses, the next step in how to start a trailer rental business is to have a bit of fun. 

Make a list of business and domain names that represent you, your business, and your location. Then check to ensure your preferred names and domain addresses aren’t yet in use before moving forward and establishing your DBA and website.

Create a Business Plan

A business plan is a document that maps out your research, goals, financing, intended operation, and all the steps you will take to succeed for your first one to two years in business, up to as many as five years of operation. 

It should include items like:

  • Executive summary
  • Business description
  • Market analysis
  • Competitor analysis
  • Services offered
  • Pricing strategy
  • Marketing strategy
  • Funding sources
  • Financial projections

This document isn’t just for your benefit; it also provides lenders with information about how you will make your business successful so they can decide whether they’ll lend you the startup capital you need. It must be comprehensive.

Register Your Business, and Register for Taxes

Before scheduling annual versus quarterly tax filings, you need to make sure your business is registered so you understand your obligations and can plan for the most favorable outcomes. 

While a limited liability corporation (LLC) is the most common structure for this type of business, you could also set up a sole proprietorship, a general partnership, an S-Corp, or a C-Corp.

Before choosing, you’ll need to understand the requirements, benefits, and possible risks associated with each. You must also obtain an employer identification number (EIN) for banking and tax purposes.

Secure Funding

Funding for your business could come from a range of sources, including:

  • Personal savings
  • Contributions from a business partner, family, or friends
  • Bank loans
  • Small Business Association (SBA) loans
  • P2P lenders

To qualify for a business loan from a bank or investor funding, you’ll need a range of documents, such as:

  • Business plan
  • Financial projection statements
  • Personal tax returns
  • Details of how you will use funding
  • Details of your business and services

These display your research, competence, planning, and fitness to operate a successful business, as well as how you will use funding wisely and repay debts promptly. For a deeper look into loans, explore our equipment loan and finance calculator.

Create a Website

So much business is conducted online these days that you can’t afford to operate without a website. You can pay a professional designer to do it for you, but early on, you may want to manage it yourself to save money.

You’ll need a range of rental software solutions to do this, starting with management programs that allow you to track inventory and take online bookings. You’ll also want to optimize your website to drive targeted traffic, which will fall under your marketing budget.

Create a Marketing Strategy to Promote Your Trailer Rental Business

Marketing is all about increasing awareness of your business and compelling desired actions from potential customers (i.e., visiting your website, booking rentals, etc.). 

If you have no background in marketing, you may want to hire professional help to create a sound local marketing strategy or a business launch campaign.

SEO: Bringing in Leads from Google Searches

Search engine optimization (SEO) is incredibly complex, but it has to do with efforts to ensure that online search bots recognize your website and rank you at the top of search engine results pages for relevant searches for businesses like yours.

Paid Search Marketing

Paid search marketing through programs like Google Ads can help you to increase your online exposure to target demographics.

Paid and Organic Social Media Marketing

If you have the time and you feel confident promoting through social media platforms (Facebook, Instagram, Twitter, and TikTok), you could devise your own strategies to gain an organic following. 

If this is too slow for you, paid social media marketing may prove more effective.

Email Marketing

Sending emails to prospective customers, or even sending old-fashioned print flyers, could also be part of your strategy. 

These efforts not only raise awareness among local customers but also allow you the opportunity to offer deals that increase interest and follow-through.

How to Build a Trailer Rental a Business to Last

There are several important steps to take when starting your trailer rental business, and you can’t skimp on software if you want to create a successful operation with room to grow and thrive.

If you’re starting a trailer rental business, it’s a smart idea to invest in the right software tools.

At Quipli, our advanced rental management software makes it easy to accept bookings, track rentals, manage inventory, and more.

To find out more about Quipli, book a demo with us any time.

Learn About Quipli’s rental Software

How to Start a Generator Rental Business: A Complete Guide

Buying a generator for a home or business can be expensive — especially considering that this piece of equipment may be useful only on the rare occasion that the power goes out. 

While some generators are small enough to run just the essentials, like a refrigerator, others are designed to power an entire home or commercial building. These are expensive, not only to purchase but also to run, but miss the list of most expensive construction equipment.

This is why many people opt instead to rent generators as needed. There are several benefits associated with rental, aside from reduced upfront pricing. Rental generators are sure to be well-maintained, and customers have the flexibility to get the right equipment for their needs.

Generators are useful for events where no power supply is accessible or for construction projects that have a limited term. Often, renter’s insurance is offered to protect renters against damage or loss.

In other words, there are many reasons why residential, commercial, and industrial customers might want to rent generators. It’s a great niche to focus on if you want to start a rental business.

Having the right equipment, pricing, and marketing strategies can help you get your business off the ground. 

What do you need to get started? Here’s how to start a generator rental business of your own.

Assess the Local Market Landscape for Generator Rentals

Before you really get into the nuts and bolts of how to start a generator rental business, it’s best to research the local market and make sure there are opportunities for your venture to thrive. Start with some competitive research.

How many other companies in your area offer generator rentals? Chances are you’ll find several types of businesses that would compete with you in this area – ranging from hardware stores that rent or sell small units for residential use, to larger companies catering to commercial, industrial, and construction projects. 

You need to consider who you plan to cater to, whether there’s a niche you can fill, and who you’ll be competing against.

This is a good time to consider your startup costs as well. If you’re renting to local residents, the equipment and costs may be considerably lower than if you plan to serve commercial or industrial clients or target event companies or concert venues.

You also need to assess the demand for generators in your area. Who needs them and how often? How many options do they have locally and what prices are potential competitors charging? 

This information will help you determine how best to go about launching a successful business venture.

Identify The Costs of Starting A Generator Rental Business

When it comes to starting your business, there will be a range of costs to consider. You’ll need to account for all of these various costs in your business plan if you hope to secure adequate funding to get your operation off the ground. 

Perhaps the biggest expense in a generator rental business model is the equipment itself, with models ranging from several hundred to several thousand dollars, depending on make and model, size, capacity, and features. 

Which types of generators do you intend to rent out? How many of each will you need to get started?

Next, you’ll need to consider a commercial space. If you elect to run your business online, you may require only a warehouse (to store equipment when not in use), along with appropriate devices and software to manage bookings, inventory, and payroll.

If you want a storefront, you’ll have the cost of leasing office space. You may need to

outfit your space and hire employees, adding to your startup costs and ongoing overhead. 

Don’t forget essentials like the cost of setting up a DBA and corporate structure (LLC, S-Corp, etc.), insuring your location and/or inventory, security, and so on. 

Every expense should be factored in, along with operating costs for up to a year or more while you get your business going.

Rent Commercial Space for Your Business

Leasing can be expensive, so it’s important to find the right commercial space. You don’t want to pay for an oversized warehouse, complete with utilities, if you’ll fill only a third of it with inventory.

The first thing you should decide is if your generator rental business needs a storefront for walk-in customers and pick-ups or just a warehouse from which you’ll ship out equipment for bookings. 

From there you’ll need to consider your inventory, including the size and quantity of units. Can some of it be shelved? This may require you to know weights and add appropriate shelving and moving/lifting equipment like a forklift.

You might be interested in having room to grow, but don’t get too far ahead of yourself. If your business really takes off, you can always move to a larger space. You don’t want to fail because you’re paying too much for a lot of unused square footage.

Choose the Right Products to Offer for Rent

The equipment you offer for rent needs to meet customer demand, and if you’ve done your market research properly, you’ll have a good idea of who you’re catering to and what potential demand looks like. 

This can help you determine the brands, models, and types of generators you’ll need to get your business started and satisfy your customers. With the right products, generator rental can be one of the most profitable rental businesses out there.

Of course, you should also think about possible seasonal fluctuations. If you live in a winter climate and you’re renting primarily to construction teams, you might see significant demand only during the summer months. The same could be true of party/event rentals.

Or you might rent out residential generators during the winter months if outages are common in your area. Knowing this could help you to secure the right equipment in the right quantities long before you ever start scheduling rentals.

Choose the Right Software Solutions

If you’re going to start a generator rental business, you’ll need the right online platform to manage it. First and foremost, you’ll need software designed to track inventory and manage bookings.

Your platform should integrate seamlessly with other software you’ll need, such as QuickBooks for accounting, Avalara for automated tax compliance, Google Analytics for online marketing, and more. What else should your software provide?

Types of Software and Features You’ll Need

The right business management software for your generator rental operation should include a number of key features, such as:

It’s important that you have the right digital tools to easily make sales, get paid, track inventory, provide convenience for customers, and track the health of your business.

Create a Website and Marketing Strategy to Get Your Business in Front of Customers

Whether you run a physical storefront or not, it’s imperative that you build an online arm for your operation. Customers often perform online research before making buying decisions, and you need a website if you want to be competitive. 

For customer convenience, the option to book rentals online is vital, and this requires a CMS or plugin that allows to you take orders and accept payment.

Your website is also a great starting point for digital marketing. It not only acts as a point of interaction and sales online, but when properly optimized, it can attract visits from targeted demographics — consumers seeking your goods and services. 

Marketing efforts could include search engine optimization (SEO), content marketing, pay-per-click (PPC) and/or display advertising, social media marketing, and more.

Tracking the right KPIs for your rental business can help you refine your marketing efforts over time.

With extensive research and a comprehensive business plan that includes information about market demand and competition, starting costs, equipment purchases and rental pricing, a commercial lease, software, and marketing, you have the best opportunity to impress lenders and secure needed startup funding for your generator rental business.

Quipli’s rental business software provides the tools to manage orders, payments, inventory, and more. Book a demo today to learn how it elevates your business.

Learn About Quipli’s rental Software

7 Smart Marketing Ideas for Equipment Rental Companies

Have you recently launched an equipment rental business and found yourself looking for ways to get the word out about your new venture? 

Thinking about starting your own company, but want to ensure that you know how to effectively market your services? Want to fuel continued growth by leveraging proven marketing ideas for equipment rental businesses? 

If your answer to any of the above questions was a definitive “yes,” then you are definitely in the right place. 

In the article below, our team has composed a list of some well-established marketing tips for equipment rental businesses. Your company can benefit from these tactics whether you are well-established or new to the equipment rental industry. 

As you explore ways to build your brand, acquire new clients, and boost revenue, we suggest that you use the following tactics.

Clearly Define Your Target Audience

You must first identify who you plan to target before you take to social media, launch paid ad campaigns, or start writing blogs. Without a clearly defined target audience, it will be incredibly difficult to put together a cohesive strategy to execute your marketing ideas.

When defining your target audience, you should focus on attributes such as:

  • Demographics (age, gender, etc.)
  • Occupation
  • Location

After you have gathered some preliminary data on your target audience, you can segment it into subgroups. While there are many ways to segment your audience, one of the most effective tools for doing so is a system known as “buyer personas.” 

Buyer personas outline specific segments within your target audience. These pseudo-representations of your customers describe each segment’s pain points, challenges, and interests. Buyer personas will help you tailor your marketing message for each audience segment. 

For more on creating buyer personas, check out this guide from HubSpot.

Create a Content Strategy and Publish Content Regularly

Next on your to-do list is creating a search engine optimization (SEO) strategy. SEO is the art of improving your website so that your content is more visible on search engines.

Search engines like Google and Bing rank websites using complex algorithms. These rankings are designed to connect users with relevant search results based on the keywords they queried. 

While there are many components of SEO, keywords remain the core. In order to boost your ranking on search engine results pages (SERPs), you need to strategically target keywords and incorporate these phrases into your content. 

On that note, you cannot aimlessly pump out content that is jam-packed with semi-relevant keywords. 

Instead, you need to create a cohesive plan that outlines what keywords you want to target, why, and how you intend to go about it. Once your plan is in place, you will need to produce high-quality blog content and publish it on a regular basis. Over time, this will help you improve your rankings.

When creating content, focus on delivering value to your readers. The majority of your content should be educational, informative, and perhaps even fun and entertaining. Your blogs’ specific tone and style should align with your brand values and voice. 

For instance, if you rent bounce houses or party supplies, it’s okay to be a little more whimsical in your blog content. Conversely, if you rent construction equipment, your blogs should be more professional and focused. 

Make Sure Your Site Includes High-Quality Photos

When prospective clients are contemplating renting equipment from your company, they want to know that they are getting quality products. While describing the quality of your rentals will help sway their decision, a picture is worth a thousand words. 

Professional photographs will allow customers to see precisely what they are renting. Photographs are also eye-catching, which means that visitors to your site are more likely to slow down and actually pay attention to the content on your site. 

Rental photos are not just useful for your website, but they can help you garner additional attention on social media platforms as well. If prospective clients are rapidly scrolling through their news feeds and come across a big, bold image of the equipment they are interested in renting, they will stop in their tracks.

Get Active on Social Media

Speaking of social media, various social media platforms are great tools for building your brand and attracting new clients. When marketing on social media, we suggest using a combination of organic and paid marketing

Social media can be one of the most versatile marketing ideas for rental businesses, giving you a lot of options for the kinds of content you can share to engage with your customer base.

Organic marketing involves generating traffic without the use of paid ads. You can drive organic traffic by creating social media pages, growing your following, posting regularly, and interacting with followers. 

Paid campaigns on social platforms work very similarly to those on search engines. When setting up a campaign, you can customize your budget, ad display options, and bid amounts. These capabilities give you total control over your marketing budget while also maximizing your reach.

Which Social Media Platforms Should I Use?

While there is no doubt that you should be marketing your rental company on social media, the question is, what platform should you be using? There is no one size fits all answer.

When selecting which platforms to leverage, you must consider your target audience. Let’s stick with the party and bounce house rental example to keep things simple.

Bounce house and party supply rental businesses primarily target consumers who are hosting personal gatherings. In light of this, such a business would probably benefit the most from marketing on Facebook and Instagram. 

On the other hand, a business-to-business (B2B) company that rents to construction companies needs to connect with other business owners. Therefore, LinkedIn would probably be the ideal marketing channel for that business. 

However, B2B businesses can still benefit from marketing on mainstream social channels like Instagram —although it should not be their primary channel. Regardless of which platforms you choose to use, be careful not to overload yourself. Doing so can make it difficult to manage all of your channels.

Engage on Your Chosen Channels

When marketing on social media, you must do more than just run ads or post content. You also need to engage with your followers or people who comment on your posts. 

To be clear, we don’t expect you to spend hours replying to followers every day. You have a business to run, after all. However, you do need to check your social media at least once or twice daily and strive to be responsive to customer inquiries. 

If your social media followers become unruly, you may want to bring in a full-time digital marketing professional to manage your accounts. Alternatively, you could hire a freelancer to spend five to ten hours per week managing your social channels if you don’t have the need or budget for a full-timer.

Create an Email Marketing Strategy

We know that email marketing sounds old-fashioned, but it remains a great way of connecting with customers. Setting up an email marketing campaign can help you connect with new clients, nurture existing leads, or solicit reviews from past customers. 

Managing an email marketing campaign has become easier than ever before, thanks to platforms like MailChimp and ActiveCampaign. These solutions allow you to segment your email lists into various groups so that you can target each segment with specific messaging. For more on email marketing, explore this guide.

Follow Up with Past Customers

Staying connected with past customers is a great way of keeping your brand top of mind. You can keep up with previous clients in many different ways. 

One simple tactic involves adding them to a recurring email list using the tools mentioned above. Alternatively, you can use ad retargeting by installing cookie-based trackers on your website. This approach will help you display ads to prospects who have visited your site but may have left without contacting your company. 

Nurturing relationships with previous customers can generate repeat business. In turn, this will lead to stronger revenue and help you build your brand’s reputation.

Invest in Quality Rental Management Software

All of the above tactics will help drive customers to your website. But what sort of experience are they going to enjoy once they get there? Will they be able to book their own rental or easily explore what items you have available? If not, then you have fallen short of customer expectations and hindered your own growth efforts.

The good news is that you can modernize your online storefront with Quipli’s rental website builder. To learn more about our online scheduling and rental booking platform, sign up for a free demo.

We offer a full suite of digital growth services for equipment rental businesses. To find out more about how to take your marketing to the next level with Quipli, reach out any time!

Learn About Quipli’s rental Software

The Construction Equipment Rental Market: 2022 Industry Statistics

The construction equipment rental market is expected to continue growing despite economic uncertainty.

Currently, the industry does face challenges like higher raw material prices, rising interest rates, and an overall lack of skilled workers. This uncertainty has proven to be a net positive for equipment rental companies and the growth of demand for rental construction equipment. 

The rising cost of purchasing equipment will also push even more construction companies to consider renting.

Renting allows contractors to take advantage of the latest construction equipment technology without the high cost of ownership. 

Tech-focused machines that help improve efficiency for construction companies are expected to be a hot market for rentals, helping drive industry growth for the next several years.  

The Equipment Rental Industry Is Continuing to Grow

Strong growth is expected regardless of which equipment rental industry statistics you look at. 

For example, data published by the American Rental Association (ARA) shows the total revenue for the equipment rental industry (which includes construction/industrial and general tool rentals) is expected to hit $52.3 billion in 2022, growing by almost 10% from 2021.

The ARA also projects 5.5% growth in 2023, 2.5% in 2024, and 3.3% in 2025. 

Meanwhile, Market Data Centre (MDC) research shows that the total value of the construction equipment rental industry was $108.1 billion in 2021. MDC projects the industry to grow to $156.8 billion by 2030. 

From 2022 to 2027, MDC expects the industry to grow at a compound annual rate of 5.46%. 

Construction Equipment Rental Industry Statistics

According to research by Grand View Research, the size of the construction equipment rental market grew to $73.44 billion in 2021. That number is expected to grow by 3.9% annually through 2030 — hitting $105.29 billion in 2030.

This growth comes despite inflationary concerns and supply chain issues that have carried over since the pandemic. The uncertainty has led many contractors to delay major purchases in favor of renting. This tactic also allows such companies to decrease

The capital needed to start new projects. 

Construction contractors are also opting to rent equipment to help offset the rising prices of new equipment. More efficient machines, thanks to tech advancements, bring higher prices as well — another reason for the expected growth in the rental market. 

Earthmoving Equipment Has Had Significant Recent Growth

Fast growth in the earthmoving equipment segment has been a key construction equipment trend in recent years. It accounted for 50% of the market share for construction equipment rentals in 2021 and was responsible for over half of the industry’s growth. 

This segment of equipment rentals includes machines such as skid-steers, excavators, and backhoes. The increased use of such machines in mining and agriculture industries is driving the earthmoving equipment rental market. 

Bigger projects require more earthmoving machines. That’s in addition to continued growth in the residential and commercial construction industries.

Learn more about the most expensive construction equipment as well as the most popular equipment to rent

Material Handling Machinery

Material handling machinery equipment rental industry revenues are expected to grow at a compound annual rate of 4% through 2030. The demand for crawler cranes is driving this industry, with increased demand for material handling machines used in manufacturing and industrial construction. 

Again, bigger projects around the globe have increased the demand for material handling machines. 

Concrete and Road Construction Machinery

The concrete and road construction equipment segment is expected to see some of the best growth over the next decade, with a compound annual growth rate of 6.5% from 2022 to 2030. Total value of the industry is expected to hit $39.1 billion by 2030. 

This industry will be one of the biggest benefactors of increased road construction in the United States, as well as the increased adoption of road connectivity. Improved road infrastructure that promotes safety and causes fewer automobile fatalities will likely be a priority for federal spending. 

Key Growth Drivers for the Construction Equipment Rental Market 

Beyond the economic uncertainty and rising costs of construction equipment that will lead to more construction companies renting equipment versus buying, there are other growth drivers for the industry:

Infrastructure Spending

These key growth drivers include the Infrastructure Investment and Jobs Act (IIJA), which will boost federal spending on infrastructure. As well, the push toward net zero emissions by utility and energy companies will further drive construction in those areas.

The IIJA will include an investment of $110 billion in infrastructure improvements in the U.S. This includes spending on roads and bridges — notably improved road connectivity that will help improve commerce and trade. Increased road connectivity will also promote safer streets. 


Construction equipment fitted with the latest technology will be a key demand product for contractors. However, the high cost of these technology systems prohibits many smaller builders from being able to purchase them outright. Thus, rental opportunities for equipment that has new systems installed will be in high demand going forward. 

Such technology can improve the efficiency of construction projects and help cut costs. For example, a technology-enabled piece of equipment can relay key data to owners, such as GPS information, fuel consumption, and equipment idle time. 

With these benefits come big costs, making some solutions too expensive for many contractors — hence the increase in demand for rentals. 

Growing Benefits 

In addition to allowing builders and contractors access to equipment equipped with modern technology and easing the total cost of ownership, the roster of benefits provided by rental companies continues to grow. 

Rental companies are providing additional services to better serve customers, such as onsite support and greater investments in repairs and maintenance. These benefits come in addition to savings on inventory costs and initial cash outlays. 

Thinking About Getting into the Rental Market?

Quipli makes renting equipment easy for customers while making it simple to run an equipment rental business. Inventory management is presented in an easy-to-follow way with Quipli’s eCommerce platform. When it comes to managing orders and invoices, Quipli makes those tasks easy as well. 

Explore additional construction equipment rental business ideas to help solidify your construction equipment rental business plan with Quipli.

It’s all done right on the platform, making it an all-in-one tool. Utilize Quipli’s rental website builder to grow your business and find out more about how we can help your rental business by booking a Quipli demo.

Learn About Quipli’s Contruction Equipment rental Software

How to Sell Construction Equipment

Your rental business is only as good as the equipment you have to offer, and you’ll find that selling construction equipment is an important part of inventory management

While some clients may prefer solid, older equipment that their workers are familiar with, others want the newest machinery. This demand will require periodic turnover of equipment. 

How do you go about selling used construction equipment to help pay for newer models?

Evaluating Your Equipment Before Selling It

Even though you’re an expert on equipment rental, you might not have the first idea of how to sell heavy equipment. 

Start with inspection, cleaning, and appraisal. You need to assess the condition of your equipment as part of determining its overall value so you can set a reasonable sale price.

Take a Thorough Inventory

Get started by taking a full inventory, including anticipated return dates for items out on lease. 

If new purchases depend on selling old equipment, you can always discuss an upgraded booking with current renters to fulfill their contract.

Determine Which Items in Your Fleet Should be Kept or Sold

Once your inventory is complete, it’s time to carefully consider what you want to keep and what should be sold. 

In some cases, you may want to hang on to older equipment that’s in high demand among your customers. The condition of the equipment may play a role as well. Before you decide to sell construction equipment, think about whether it has more use value as a rental. (Our free equipment rental cost calculator can help you get a handle on this value.)

Prepping Your Construction Equipment for Sale

When you decide to sell construction equipment, you need to make sure it’s in shape to fetch the best possible price. Perform a thorough cleaning and inspection, service machinery, and make needed repairs to get it in optimal condition for sale.

Pursue a Thorough, Professional Appraisal

Calculating what you’ve spent and earned over the life of equipment ownership can help you determine a break-even price and hopefully exceed it when selling heavy equipment. 

A professional appraisal is the best way to figure out what your equipment is worth and what you can reasonably try to sell it for.

Selling Your Construction Equipment: Your Options for Finding Buyers

Your business requires you to keep a finger on the pulse of the rental market. When you’re considering how to sell construction equipment, however, you may not have the same level of expertise. 

For this reason, it’s a good idea to explore your options when it comes to effective avenues for making sales.

Selling at Auction

There are auction firms with a worldwide audience that specialize in heavy equipment, and the process can include both in-person and remote bids. This can expand your pool of buyers, especially considering that auction firms have their own marketing and contact lists in place. It could be a great way to sell off a lot of equipment quickly.

An auction could take place at your facility or at an auction yard along with other sellers. As a bonus, you may have options for additional services like appraisal, repairs, detailing, and equipment transport.

Reaching Out to Local Equipment Dealers

It’s not unusual for dealers to sell heavy equipment that is used alongside newer models. Consider making an appointment with dealers in your area to discuss the prospect of selling on their lots. 

They may buy your equipment outright to sell or offer a contingency deal where they take a cut of the sale, so you’ll need to work out the details.

Listing Your Equipment Online

Online sales are a great way to expand your potential buyer pool. There are websites (like Machinery Trader) designed for selling construction equipment. 

You will have to pay for listings, but you could have access to useful options like SEO and search ads that get your listing in front of targeted buyers searching for used equipment like yours.

Paid Facebook ads are another option to consider. Alternatively, you could join Facebook groups dedicated to selling heavy equipment or list on Craigslist for free, but these options could limit your buyer pool.

Expert Tips for Selling Used Heavy Equipment

Once you’ve chosen the appropriate platform for selling used equipment, you need to make sure it’s ready to go. Getting the best price in a sale means knowing the value of what you have, presenting it in the best possible light, and offering straightforward descriptions so buyers are satisfied with what they receive.

Know the Valuation of Your Machinery

When determining how to sell construction equipment for the best return on investment, you need to make sure you know what it’s worth. The value will depend on a range of factors, such as the make and model, age, and condition. Understanding market demand will also play a role in setting an appropriate price.

Take High-Quality, Well-Lit Images

A picture is worth a thousand words, so you need to take pains to post high-quality, well-lit images displaying your equipment from multiple angles. Show the machinery in full and highlight areas of interest like the engine, cab, gauges, tracks, hydraulics, and so on. Consider what you’d want to look at if you were a buyer.

Be Honest and Transparent

If you’re planning to sell heavy equipment online, it’s important that you’re upfront about what buyers will receive, especially where condition is concerned. If a buyer feels like you lied about the condition of the equipment, you could not only suffer bad reviews that impact your rental business but you might also face a lawsuit.

Determine the Tax Implications of Selling Your Equipment

Before selling equipment, discuss tax implications with your CPA. If you sell lower than the remaining un-depreciated value, can you take a write-off? How much will you be taxed for gains? Can you offset gains that will add to your taxable income? These are all things to find out before setting a price and selling equipment.

Learn more about construction equipment in our guide to the most expensive construction equipment, the most popular rental equipment, and which heavy equipment is in trend by renters. 

Research and Prep Are the Best Strategies for ROI

When you take the time to thoroughly evaluate used equipment, find the right venue to sell it, and present it properly at a reasonable price point, you have the best chance to complete sales and see some return on investment. This can help you purchase newer equipment that will keep your rental business going and even facilitate expansion.

The best rental software can help you manage all aspects of your business, including equipment rentals, payments, and inventory. 

Book a demo with Quipli today to learn more about streamlining your operations.

Learn About Quipli’s Construction Equipment rental Software