The Best Skid Steer Brands for 2023 & Beyond

Skid steers are one of the most versatile pieces of equipment for any project. They’re nimble and can be paired with various attachments. 

However, picking the right skid steer for your rental business can be overwhelming. They come in many sizes, with varying horsepower and compatible attachments. 

The Top 5 Skid Steer Brands for 2023

When it comes to picking the best skid steer for your rental business, sticking to one of the top five skid steer brands is a safe choice. 


bobcat s650 skid steer

Bobcat owns the skid steer market, so much so that its name is synonymous with skid steers. It has roughly 40% of the market share. 

The company, originally Melroe Manufacturing, made the first skid steer and now offers a massive line of options. Bobcat is the industry leader for a reason; it offers touch displays, best-in-class lift cars, and strong hydraulics systems.


caterpillar skid steer

The biggest name in construction equipment entered the skid steer market in 1999. Caterpillar’s name is synonymous with reliability and quality. The same is true of its skid steers. It offers nine different models that range in weight and horsepower. 

Caterpillar skid steers range from 1,500 to 3,700 pounds, with between 65 and 110 horsepower. These skid steers have electric throttle features and easy access for servicing. 


CASE skid steer

CASE Construction Equipment merged with skid steer maker New Holland in 1999, but CASE has made these machines since 1969.

The company offers eight skid steer models ranging from 1,600 to 3,400 pounds and 60 to 90 horsepower. 

John Deere

bobcat mini excavator

John Deere, known for its farming equipment, also makes skid steers. Its skid steers come in a variety of sizes, from 6,000 to 10,000 pounds. Horsepower ranges from 65 to 100. 

Despite being known for its reliability, John Deere doesn’t have a huge selection of skid steers, but the ones it offers are made for heavier attachments. However, John Deere skid steers tend to be a bit more expensive.


JCB skid steer

JCB offers some of the best compact and affordable construction machines, including skid steers. The cabs are larger than other skid steer brands, making them impressively comfortable. 

Small machines from JCB are known for being fuel-efficient. All eight skid steer models use the same engine, making them easier to service. Some have an operating capacity of 2,000 pounds, while others are over 3,000 pounds.

What Is the Best Skid Steer Brand?

Any of the top skid steer brands would be a great choice for your rental business. However, the consensus is that Bobcat makes the best skid steers — as it owns 40% of the total market share. It was the first to introduce skid steers to the market in the 1960s. 

Bobcat offers various sizes, including compact models for yard work and larger models for major construction projects. Caterpillar is another reliable name, with a much larger variety of equipment. Both brands are relatively easy to service and experience few breakdowns. However, they are both generally more expensive than other brands. 

What’s the Best Skid Steer for the Money?

JCB offers the best skid steer for the money. The company makes some of the most reliable smaller construction machines. JCB’s skid steer was recognized for its resale value by EquipmentWatch. In 2019, the company gave JCB the Highest Retained Value Award. 

The power offered by JCB skid steers is more than enough for any job, plus the controls are modern, and the cabs are roomy. However, there are fewer models to choose from. 

So who makes the best skid steer? Bobcat and Caterpillar skid steers are both known for holding their value very well. Overall, the best skid steer to buy will come down to those that fit your major needs, such as lift capacity and reliability. 

How to Choose the Right Skid Steers for Your Rental Business

Below are six key criteria to consider when looking for the best skid steer brand. 

Lift Capacity

Lift capacity is how much the skid steer can lift. Skid steers will have one of two lift arm styles: radial and vertical lifts. Vertical lifts are for up-and-down movement versus reach. This option is best for moving heavy pallets or dumping material into trucks. 

Radial lifts are good for backfilling and putting materials on flatbed trucks. The bucket can be lifted in an arc, allowing for better range. 


How reliable the equipment is should also be a major factor. You don’t want to spend hundreds of dollars on repairs each month. Instead, it’s better to invest in a high-quality piece of equipment. Additionally, a good maintenance plan will boost the useful life of any skid steer.

Available Attachments

The attachments available for the skid steer are also important. A variety of attachments will increase the skid steer’s versatility and make it more marketable for rentals. You should consider the following attachments: 

  • Pallet forks

  • Backhoes

  • Brush cutters

  • Augers 

  • Grapples

  • Bale spears 

  • Buckets 

  • Blades

  • Trenchers

The more attachments a skid steer can use, the more projects it can tackle.

Suitability for Different Project Scopes

How well does the skid steer work for different projects? For example, you might need a skid steer to fit into tight spaces. In that case, look for a compact model. In contrast, bigger loads will require a larger capacity. 

Type of Hydraulic System

Skid steers come with one of two hydraulic systems: low-flow or high-flow. The flow of the hydraulic system is how hydraulic fluid is moved through two hoses in the skid steer. Low-flow skid steers move less hydraulic fluid per minute than high-flow. 

The higher the flow, the more powerful the skid steer, meaning it can use larger attachments, such as snow blowers and stump grinders. 

Engine Type

Engine type comes into play when meeting EPA emission requirements; 75-horsepower diesel engines on non-road equipment must be Tier 4 compliant. These engines, however, require additional maintenance to prevent damage. Consistent maintenance and keeping the fuel filters clean can help the engine stay in good working order. 

Ready to Add a Skid Steer to Your Rental Portfolio?

The five skid steer brands above are great if you’re looking to add a skid steer to your rental equipment selections. A skid steer is a versatile piece of equipment that can fit various attachments and can be used for snow removal, grading, loading, or lifting. 

Making the most out of your rental business is the goal of the Quipli team. We provide an automated system for managing your rental inventory and scheduling. Reach out today for a demo.

Ready to expand your equipment inventory? Explore these guides to explore your fleet: How to start a trailer rental business and best mini excavator to rent.

Equipment Rental Insurance: What It Is & Why You Need It

Equipment rental insurance is a form of insurance that you can get if you rent out equipment to customers. It’s instrumental in helping avoid costly losses and downtime for your rental business.

Equipment coverage can insure large pieces, such as excavators, as well as the tools and inventory you rent out, such as post-hole diggers.

What Is Rental Equipment Insurance?

Insurance for rental equipment covers the items you rent out, such as tools, equipment, and other inventory. Rental business insurance can be bought to cover any kind of equipment. 

Having rental equipment insurance coverage will protect you in case something happens to your equipment, such as theft or a major accident. There are also other options for your business that’ll cover you beyond just lost equipment. 

When it comes to rental equipment insurance, you’ll also have policy specifics depending on the equipment you rent out. If you offer heavy equipment, your insurance policy may assume that you’re renting to individuals or companies that are insured and licensed.

There may also be limits on how long you can rent out equipment, as the longer the rental period, the greater the likelihood of damage or loss. You can help protect yourself with proper insurance coverage and the rental contract you use, which can stipulate renters liability insurance for your customers.

Types of Rental Insurance

Equipment rental business insurance is available for various types of equipment. There are different coverage options and plans based on the equipment you rent out.

Naturally, rental insurance will vary by business. For instance, insurance types and coverage options will be different for a party rental business than for a golf cart rental business. Heavy equipment rental insurance will have different options as well.

Here are some key types of insurance for equipment rentals that you’ll likely encounter on the market. 

Floater Coverage 

Also known as inland marine coverage, floater coverage is a type of add-on coverage that covers rental properties not covered by other policies. This includes property you rent from others as well as newly acquired rental equipment. 

Commercial Property Coverage

Commercial property coverage is a broad category of insurance that, in some cases, covers the things you own and use as part of your business along with your company’s physical premises and related real estate. This could include office furniture, computers, and non-rented equipment and appliances.

Commercial property coverage covers rental businesses in the event of damage or loss, such as employee theft. 

Commercial Auto Coverage

Commercial auto coverage is for the vehicles you own and use as part of your business, such as delivery vehicles. This will cover vehicles you rent, lease, borrow, or own. 

Umbrella Coverage

Umbrella and excess coverage will protect you if a claim goes beyond its limits. For example, if you have a major liability claim from a lawsuit, umbrella coverage will kick in if the claim exceeds the limits of the primary general liability policy.

Other Coverage Options

There are also other specialized insurance services offered to rental businesses, such as business income coverage. Business income coverage covers lost income if the business can’t conduct business due to a covered event. 

For example, business income coverage for off-premises utility services will replace business income if they can’t conduct business due to unexpected utility interruptions. 

Another common example is property-in-transit coverage, which will cover your rental property if it’s damaged during shipment. 

What Does a Basic Equipment Insurance Policy Cover?

There are two main types of rental equipment insurance coverage: covered property and replacement cost. Covered property covers anything you rent out, while replacement cost coverage is for equipment that must be replaced. 

Good basic equipment insurance should include broad coverage, protecting such things as lost or stolen equipment, equipment damaged due to misuse or weather, and cleanup for covered incidents. 

Covered Property

Covered property is coverage for pretty much anything you rent out. For example, covered property coverage would cover flatware, serving utensils, and party supplies for a wedding rental company.

Other items that would fall under the heading of covered property include wood chippers for a lawn equipment rental business and video recording equipment for a media rental company.

Replacement Cost

Replacement cost coverage is for equipment that becomes irreparably damaged or lost. Replacing such equipment can be costly. This coverage can ease the financial burden by providing some or all of the money required for replacement. 

General Liability Insurance for Equipment Rental Businesses

Insurance for equipment rental generally includes covered property and replacement cost coverage, but you’ll also need general liability insurance to protect you beyond rental-specific issues. General liability coverage will protect you from lawsuits customers file against you. 

Lawsuits can arise for a variety of reasons. For example, a client that’s injured while using equipment they rented from you may file a lawsuit to cover their injuries and distress. Similarly, a property owner might sue you if a piece of equipment you rented out to them accidentally destroys a building. General liability insurance can help protect your business from having to use valuable resources to fight such lawsuits. 

General liability coverage can protect your business against lawsuits, damages, and lost equipment. But it can also protect against negligence, slander, errors and omissions, and contractual liability. 

The risks of owning a rental equipment business are unique and diverse, but good insurance can greatly hedge many of them. As mentioned, a good rental contract can also protect your business from loss.

It helps to know what your insurance covers and what it doesn’t.

For example, what happens if a customer simply doesn’t return the equipment they rented? What happens if they lend out the equipment to someone else and that person damages your equipment or injures someone? These are the kinds of questions you’ll want to think through and address with your insurance agent.

Make Rentals Easy With the Right Partner

The less you have to worry about as an equipment rental business owner, the better. Proper insurance coverage can ease your mind regarding what might happen to your equipment when it’s in customers’ hands.

Another way to reduce your business-related stress is a proper rental inventory management system. Quipli offers a platform that does the hard work of managing your rental inventory for you. Contact us today to get a demo.

Need help evaluating your equipment value? Here are two handy guides: New and used equipment values and how to value a rental business.

Learn About Quipli’s rental Software

Equipment Loan Calculator

u’ll need to spend on equipment? Using an equipment loan calculator can help you find out exactly what you can afford. 

Construction equipment can be expensive, and you’re likely to need business loans to purchase it.

A good equipment payment calculator will allow you to customize all aspects of your loan — helping you figure out exactly what works for you. 

Many banks offer equipment financing, and some financing companies specialize in loans for construction and heavy equipment. Before contacting a lender, you can use an equipment finance calculator to get an idea of what to expect. 

The key inputs for a heavy equipment loan calculator are similar to those for many loans — the amount financed, the interest rate, and the loan length (also known as the loan term). However, there are some nuances specific to the equipment financing industry that you should know about.

Free Online Construction Equipment Loan Calculator

Here’s a free online equipment finance calculator that can help you see how your payment will change based on the various inputs you choose, such as interest rates and loan terms:

Tired of juggling spreadsheets and calculators? Click here to book your demo with quipli !

How Equipment Loan Payments Are Usually Determined

Three key inputs will largely determine your loan payment:  

  • The amount you’re financing 

  • Your interest rate 

  • The loan term 

When using an equipment loan payment calculator, you’ll find that the more money you finance, the higher your payments will be. This reality is true for interest rates as well — the higher the rate, the higher the payment. 

However, the payment amount will go down if you increase the loan term (although you’ll likely pay more interest over the life of the loan). 

Let’s look at the three key elements in more detail: 

1. Equipment Loan Total Amount

The loan amount will be the amount you’re financing, which is generally the total purchase price of the equipment, less any down payment you make. 

Equipment costs in your industry will largely determine the amount you need to finance. Other factors that will determine the amount you can borrow include the lifetime value of the equipment and whether it’s new or used. 

Some equipment loans are for $5,000 or less, while some lenders have minimums on the amount they’re willing to lend for equipment loans, such as $10,000 or $25,000. Typically, the lower the amount you’re financing, the higher the interest rate. If you are financing $5,000, the rate will tend to be higher than if you’re financing $50,000. 

2. Interest Rates

Interest rates will vary based on the industry and equipment you’re financing. They can be anywhere from 2% to 20%. If you’re required to provide a personal guarantee, your credit score will also play a part in determining the interest rate. 

Other factors that play a part in the interest rate calculation are your company’s financials, such as annual revenue and length of time in business. The type of equipment and its lifetime value will play a role in the interest rate as well. 

Resale value is also a consideration. If the equipment holds its value well, you may be able to get a lower rate. The lender might see the loan as less risky when compared to one for equipment that depreciates quickly. 

3. Loan Terms

The loan term is the length of time of your loan. This duration for equipment loans tends to be between two and seven years. Some lenders may have a cap of five or ten years on the terms they’re willing to offer for equipment loans. 

Generally, the longer the loan term, the higher the interest rate tends to be. Thus, if you’re financing a piece of equipment for two years, the rate should be lower than if you selected a loan term of seven years. 

Note that you can often pay the loan off early or make additional payments to shorten the loan term (and save interest). However, some financing companies may charge a prepayment penalty if you decide to pay off the loan early. Make sure to factor that cost against any interest savings when you’re considering paying early. 

What You Should Know About Equipment Financing 

Even the best equipment financing calculator won’t be able to account for your specific situation or the special requirements that a lender might have. 

Minimum Requirements 

Equipment lenders may have minimum requirements for your business, such as thresholds for annual revenue and length of time in business. For example, a lender may require that you have at least $25,000 in annual revenue and have been in business for at least six months before considering you for a loan.

Other key requirements include minimum credit scores and required down payment amounts, which may vary between 5% and 20%. Also, recall that some lenders may have a cap on the loan term, such as 48 months, and minimum loan amounts, such as $25,000.  

Special Requirements

Some lenders will also allow for special repayment schedules, such as weekly or bi-weekly payments instead of monthly ones. They may also specify a balloon payment that’s due every 12 months or at the end of the loan’s term.

Other things to watch out for when using a construction loan calculator include upfront charges by lenders, such as origination and application fees. Don’t forget to ask about prepayment penalties or potential discounts for early payoffs.


Examples of Typical Loan Payments for Construction Equipment

So what do the numbers generally tend to look like? Here are a few examples, based on the average cost of common types of heavy construction equipment, based on our calculator.

These numbers assume a 36-month loan repayment period, an interest rate of 7.5%. Total loan amounts are based on the mean average cost for each type of equipment.

(For more information on typical prices for heavy equipment, check out our post on Construction Equipment Prices in 2022.)

  • Excavators: $9,331.87
  • Backhoes:$1,477.55
  • Bulldozers: $3,888.28
  • Skid steer loaders: $1,010.95
  • Wheel loaders: $4,665.93
  • Concrete mixer trucks: $3,888.28
  • Motor graders: $7,776.55
  • Forklifts: $1,088.72
  • Bucket trucks: $2,752.90

Prices can vary significantly, but these numbers can give you an idea of around how much you can probably expect to spend each month. Need more help on pricing? Explore our how to value a rental business guide.

Financing Equipment for Your Equipment Rental Business?

If you’re looking to add new equipment to your rental business and increase your profit, Quipli can help. Quipli’s rental eCommerce platform helps manage your inventory and website to make it easier for customers to find what they need. 

Our all-in-one software also makes it easy for you to manage your invoices and orders. You can find out how Quipli makes the sales and inventory management processes easy by booking a 15-minute demo.

Starting a new rental business? Refresh on the basics with how to start equipment rental business.

Learn About Quipli’s rental Software

How to Value a Rental Business: Valuation Tools and Methods

After starting a rental business and running it for years, you may eventually find yourself thinking about selling it to someone else.

To sell a business, you’ll need to get an accurate determination of how much the business is actually worth. There are several different valuation methods that you can use to do this.

Types of Valuation Methods

Various methods can be used to value a rental business. Three of the most common methods are asset value, future earnings, and comparable sales. 

Asset Methodology

The asset methodology for valuing a rental business uses the value of the equipment you own.

This is the fair market value of all the assets you possess. Thus, you’d find the value of each piece of equipment and add them all up. Each asset’s value can be calculated based on what similar pieces of equipment sell for on used equipment marketplaces. 

If a particular asset is no longer on the market, you may have to use another method to value it, such as figuring out what it would take to build your equipment to the current specifications with today’s price. Similarly, if you have a customized asset, you may need to calculate what it would take to add the same customizations in today’s dollars. 

Future Earnings Methodology

The future earnings methodology calculates your company’s value based on its current and future earnings. This involves estimating what your business will likely generate in the future and discounting it back using a discount rate.

This method is also known as a “discounted future earnings” valuation, as it requires you to forecast your rental company’s future revenue. After modeling earnings for each period and calculating a terminal value, you discount the amounts back to the present to get the current value. 

Comparable Sales Methodology

Comparable sales valuations look at what similar businesses have sold for recently. This generally involves calculating the valuation multiples for past business sales. The ideal multiple will be based on the specific industry.

For example, if your business generates $2.2 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) and the average EBITDA multiple that equipment rental businesses sell for is 8, your valuation would be roughly $17.6 million.

While the EBITDA multiple is widely used, you may also see other multiples applied, such as an earnings multiple, sales multiple, or EBIT (earnings before interest and taxes) multiple. Some comparable sales methodology valuations may include an average of various multiples. 

Factors Impacting Your Valuation

Many factors can come into play when valuing your equipment rental business. Most of these are things you might expect, like revenues and profit margins, but there are others worth highlighting.

Amount of Sales

To start, you’ll need to know the estimated amount of sales you’ve had — specifically, your average annual sales figure. Generally, the higher the sales, the better. 

Total Profit

Total profit is another figure you’ll need to arrive at an accurate rental business valuation. This is the average annual net profit for your business. Once again, the higher, the better.

Recent Growth Trends and Future Growth Projections

The continued growth of your sales and profits will also play a key role. Is your business slowing down, or have sales and profits been steadily on the rise? Is your business expected to keep growing with new sales channels or partnerships? These are all questions worth knowing the answers to.

Growth in the Number of Sales (and the Origin of That Growth)

If your revenue is on the rise, where is the surge coming from? Maybe you’ve been more effective with marketing, or perhaps the sales growth was short-lived. Prospective buyers will want to know what’s behind your growth and whether it’s sustainable. 

Market Positioning

Where are you regarding market share for your industry? If you’re the market leader, do consider whether you have any competitive advantages that will let you keep that position. If not, look for opportunities to claim more market share.

Geographic Location

When it comes to the location you serve, it’s wise to determine whether you have opportunities to expand your current geographic footprint. Being located in a fast-growth area for the equipment you offer can be a great advantage.

Systems and Processes in Place for Running the Business

Lastly, think about how involved you are with your business. Do you have systems in place that let your business run efficiently without a lot of labor hours? You might have opportunities to automate parts of your business, such as inventory or rental management, for superior efficiency.

Selling Your Equipment Rental Business

When it comes to selling your rental business, you have several options.

Business Brokers

Business brokers are great if your company generates $1 million or less in annual revenue. Business brokers specializing in the rental industry can be found on various online marketplaces. 

Merger and Acquisition Advisors

Merger and acquisition (M&A) advisors are suitable for businesses with revenues between $1 and $50 million. A good M&A advisor will help you find buyers, negotiate terms, and structure a favorable deal.

Investment Banks

Investment banks are ideal for larger businesses, especially those with more than $50 million in annual revenue. Investment banks specialize in tracking down big buyers and handling the terms of the deal.

Interested in Leasing your rental equipment? Explore our guide on equipment rental leasing pricing strategy today!

Are You Ready to Sell Your Business? 

If you have a rental business but are considering breaking into a different industry, you’ll first need to figure out what your business is worth. This is true if you need a business appraisal as well. A precise valuation will ensure you get the correct amount for your niche business. 

These well-protected businesses sell well and often, making it easy to find an estimated value for your company. A qualified broker or advisor can help you figure out your valuation and connect you with prospective buyers offering what your business is worth.

There are also a few simple steps you can take to help boost your valuation. A great place to start is to make sure you have as many tasks automated as possible, including your rental and inventory management processes.

Learn About Quipli’s rental Software

How to Keep Track of Your Rental Inventory

If you own and operate a rental business, efficiently managing your rental inventory should be the top priority. Whether you use a rental inventory tracker or not, you want to understand what you have available and when. Otherwise, you’re likely losing money due to lost revenue opportunities. 

Compile a Full Inventory of Your Equipment

When you’re trying to figure out how to keep track of rental inventory, step one should be to gather your equipment information. This information includes a list of: 

  • All of your assets and equipment
  • Their makes and models 
  • Their current conditions 
  • Their current values 

Then you’ll want to start putting the necessary processes in place to efficiently manage your rental inventory. This work includes figuring out who is in charge of tracking equipment and its current state. How will you keep track of repairs and maintenance? Who’ll be in charge of that? 

Note that software tracking systems can help make the entire process of tracking and managing inventory easy and straightforward. They’re much more effective at ensuring your information and availability are always up-to-date. 

Decide on a Method for Tracking Your Products

When it comes to tracking rental inventory, there are three main categories you’ll want to group your products into:  

Trackable Individual Equipment

This group is the easiest category. It includes all of your trackable equipment. These are your key assets, such as your heavy equipment if you’re running a heavy equipment rental business or your power washers for your power washing rental business. 

Bulk Inventory

Your bulk products will include items that it doesn’t make sense to track individually, such as small items you might provide to a customer. You don’t need a unique identifier for each bulk item. These items are often low-cost and easily replaced. 

For example, if you’re running a catering rental business, the bulk inventory items might be flatware or silverware. If you have 100 flatware items, you wouldn’t want — or need — to itemize every item. You’d categorize these in bulk and not be too concerned if you only got 99 forks and spoons back after an event. 


Consumables are things that will be “consumed” by the customer. These are often add-on items that you can offer your customers, such as washing fluid or tape. Consumables are usually items that the customer won’t be returning to you. 

Choose an Identification System

After grouping all of your inventory, you’ll need to figure out how to identify each piece. Each product needs a unique identifier. 

In particular, you’ll want to have a stock-keeping unit (SKU) for each item. Note that SKUs can be bundled. You can use the same SKU for variations of the same product, such as the same make and model of a golf cart in different colors. 

Labeling your SKUs with a product name or word helps you identify the product is important. Simple is usually best here. 

Photos are another form of identification that you’ll want to attach to your product records. Product photos will give customers a visual preview of what they’re renting. Ideally, you’d use an image of the actual product or a stock image that’s the same unit as yours. 

You’ll also want to bundle near-identical products to help make scaling easier. If you have the same make and model, you should create variations under the same SKU. Each SKU would still have its own price and stock count, but this setup will save you legwork as you grow, keeping your inventory list manageable. 

Create Notes on Each Item

In addition to the general information attached to each SKU, you’ll also want to maintain notes for each product. These notes can be for your own inventory management purposes, as well as for the customer. 

You’ll want to have a place to attach various types of notes to each item, such as detailed descriptions of the product, its current location, serial numbers, and a log of any repairs or maintenance. Managing these notes is where rental equipment management software becomes a big help. 

The notes section in such software platforms can host a variety of stored information, such as custom fields, tags, and almost any data that might be relevant. 

Determine Your Pricing Structure for Each Item

When it comes to pricing your rental inventory, there are two key pricing models: flat fee and structured pricing. Which you’ll choose depends on the products you’re offering. 

Flat Fee

Many rentals are priced based on a flat fee structure that involves a set price for a set period. This setup can involve a particular amount per hour or per day, such as $300 per day. The rental fee would be $2,100 for a week in such a case. 

Structured Pricing

Structured pricing is also popular among rental businesses. This approach has a tiered pricing setup. It factors in a slight discount on longer rental periods.

For example, you may charge $300 per day, but for longer rentals lasting a week, you could charge $1,925 (which averages out to $275 a day) to gain a competitive advantage over other rental businesses. 

Leverage Inventory Management Software to Track Your Rental Inventory Efficiently

A rental inventory management system coupled with an equipment scheduling software will guarantee you’re getting the most revenue by efficiently managing your inventory. 

Quipli can help you track your rental inventory regardless of your business. Our inventory management software is easy to use and intuitive while providing out-of-the-box equipment rental website templates. Reach out to the Quipli team today to set up a demo.

Learn more about inventory management with our equipment rental excel template.

Learn About Quipli’s rental Inventory Managnent Software

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.

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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!

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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