How to Rent Out Equipment – Your Step-By-Step Guide

Do you have construction equipment rental business ideas that you aren’t sure how to realize? Whether you’re expanding your current business to include rentals or starting a dedicated equipment rental company, this comprehensive guide will walk you through everything you need to know.

Starting your equipment rental business takes careful planning and execution. To find success, you must manage inventory, price competitively, and market your business effectively.

To start your business on a great foundation, we share this step-by-step guide on how to rent out equipment.

Table of Contents

Step 1: Evaluating the Market

Whether you’re interested in starting a tool rental or heavy equipment rental business, you need to know who your target customers are. Understanding your local market is crucial for your success.

Market research should be your first priority before investing in any equipment. This foundational step can save you from costly inventory mistakes and help identify untapped opportunities in your area.

Here are key questions to research:

  • What’s the most frequently rented equipment type in your area?
  • Is there sufficient demand for equipment rentals?
  • Who are your primary competitors, and what’s their inventory focus?
  • Are there gaps in equipment availability that you could fill?
  • What industries in your area require equipment rentals?

An important part of how to rent out equipment is choosing the right equipment type to cater to your local market. If your area doesn’t see much new construction but plenty of renovations, then you should focus on lighter tools instead of heavy equipment. Every local area is unique, and evaluating the specifics of the market is key to your success.

Consider conducting informal interviews with local contractors, attending industry events, or even connecting with non-competing rental businesses in adjacent markets to gather intelligence about customer needs.

Step 2: Choose the Types of Equipment You’ll Rent

The equipment rental industry spans a wide range of categories—from hand tools to heavy machinery. Your initial equipment selection will significantly impact your startup costs, target customers, and competitive positioning.

Many successful rental businesses start with a focused inventory in specific categories before expanding. This approach allows you to build expertise, establish maintenance protocols, and develop customer relationships before scaling.

Consider these main equipment categories:

  • Light equipment: Hand tools, small power tools, and light-duty equipment that require minimal maintenance and have a lower entry cost
  • Medium equipment: Larger power tools, lifts, small excavators, and specialized tools that serve contractors and serious DIYers
  • Heavy equipment: Earthmovers, large excavators, and specialized construction equipment that typically serve commercial contractors

Start by analyzing which category aligns with:

  1. Your existing expertise and connections
  2. Local market demand and competition
  3. Your available startup capital
  4. Storage and transportation capabilities

When deciding on your initial equipment mix, also consider:

  • The learning curve for maintenance and repairs
  • Parts availability for repairs
  • Seasonality of equipment usage
  • Whether equipment requires specialized transportation
  • Training requirements for customers

The most sustainable approach for most new rental businesses is to start with a focused inventory and expand methodically as you establish operations and confirm market demand.

Step 3: Pricing Your Rentals

Once you’ve determined what types of equipment are in demand in your area, you need to establish your rental business profitability. To do so, you’re going to have to decide what you’re going to charge for your rentals. This task can be more challenging than it might seem.

The primary factor behind your rates is going to be what the market is willing to pay. You can look at similar rentals in your local area (or the broader region) to find this out. If it’s cheaper somewhere else, then you won’t get much business. The other major factor in deciding your costs is going to be how much revenue you need to be profitable.

Most rental businesses offer several rate structures:

  • Hourly rates: For smaller equipment typically used for short periods
  • Daily rates: Most common, typically calculated at 1/30 of monthly rate
  • Weekly rates: Usually priced at 3-4x the daily rate
  • Monthly rates: Often the most economical for customers, usually calculated at about 3-3.5x the weekly rate

When determining your rates, consider:

  • Equipment replacement cost
  • Maintenance expenses
  • Your local competition’s rates
  • Seasonality (you may be able to charge premium rates during high-demand seasons)
  • Weekday vs. weekend pricing
  • Value-added services you offer compared to competitors

Many rental operators suggest starting with competitive rates and adjusting based on utilization. If a piece is always out on rent, it may be priced too low. If it sits idle, consider more aggressive pricing.

Step 4: Determining Your Costs

Your revenue has to be weighed against the costs of running your business. If you’re renting out equipment for profit, you’re going to have a variety of expenses. First, there’s the capital investment of buying equipment to rent out. Depending on whether you’re going with general tools or heavy equipment, this can be a significant investment.

Property for your business is going to be another significant cost. You’ll need to rent some kind of property to serve as your storefront, equipment storage, and maintenance shop. Further costs can include wages as your business grows, utilities, insurance, maintenance, and more.

Break down your costs into these categories:

Fixed Costs:

  • Rent/mortgage for your facility
  • Insurance premiums
  • Employee salaries
  • Software subscriptions
  • Vehicle payments

Variable Costs:

  • Equipment repairs and maintenance
  • Fuel for equipment
  • Transportation costs
  • Commission-based wages
  • Utilities

Depreciation:

  • Equipment loses value over time and will need replacement
  • Most rental businesses calculate 3-5 years of useful life for equipment
  • Factor replacement costs into your pricing strategy

The total cost of ownership for equipment goes far beyond the initial purchase price. Equipment maintenance, transportation, insurance, and eventual replacement all need to be factored into your business model to ensure long-term profitability.

The most successful rental businesses track the performance of each individual piece of equipment, allowing them to make data-driven decisions about what to keep, what to sell, and what to add to their fleet.

Step 5: Acquiring Inventory

Once you have determined your potential revenues and costs and found that your tool rental business plan can be profitable, you can move forward with acquiring inventory. You want to ensure that you get quality equipment while keeping costs as low as possible.

In some cases, used equipment can be a viable option. It really depends on the specific type of equipment. If your equipment rental business will have large numbers of the same type of equipment, you can consider reaching out to mid-level distributors for better deals rather than relying on retail dealers.

When building your initial inventory, consider these approaches:

New Equipment Advantages:

  • Latest features and technology
  • Full warranty coverage
  • Lower initial maintenance costs
  • Higher customer satisfaction
  • Potential tax advantages (Section 179 deductions)

Used Equipment Advantages:

  • Lower initial investment
  • Less depreciation
  • Often available immediately
  • May allow for more equipment diversity

Many successful rental operators recommend a mixed approach:

  • Invest in new equipment for high-demand, frequently rented items
  • Consider used equipment for specialty items that rent less frequently
  • Look at demo models from dealers for potential savings on nearly-new equipment

Quality matters in the rental business. Customers appreciate reliable equipment, and breakdowns not only lead to customer dissatisfaction but also lost revenue while the equipment is being repaired.

Always factor in reliable aftermarket support and parts availability when selecting equipment brands. A broken machine that can’t be repaired quickly becomes a liability rather than an asset.

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Step 6: Insuring Your Business

Insurance is important for many businesses but absolutely essential for rental businesses. Your insurance will protect you in several circumstances. The first is when equipment is damaged, but liability can’t be placed on the customer. This insurance can really save your business a lot of money on equipment replacement costs.

Second, your insurance will protect your business from potential liability for improper use of your rented equipment. If a customer were to cause significant damage to a building or property with your equipment, you could find your business under fire at some point in the legal proceedings. Insurance can protect you from this scenario.

Most rental businesses need several types of insurance:

General Liability Insurance:

  • Protects against third-party claims for bodily injury or property damage
  • Typically required by landlords and some commercial customers
  • Essential for protection against lawsuits

Equipment Insurance:

Business Property Insurance:

  • Protects your physical location, office equipment, and non-rental assets
  • Often bundled with general liability in a Business Owner’s Policy (BOP)

Commercial Auto Insurance:

  • Required for delivery vehicles and service trucks
  • Should cover employees who drive company vehicles

Proper insurance coverage is not an area to cut costs. One major accident or equipment theft without adequate protection can jeopardize your entire business.

When selecting coverage, consider:

  • Deductible amounts (higher deductibles mean lower premiums but more out-of-pocket costs for claims)
  • Coverage limits (especially for liability)
  • Equipment valuation methods (replacement cost vs. actual cash value)
  • Exclusions and limitations

Many insurance companies offer specialized packages for equipment rental businesses that combine these different coverages at a lower cost than purchasing them separately.

Step 7: Establishing a Maintenance Routine

Once your business is in swing, and you’re starting to rent out your heavy equipment, you’ll have to settle into a regular maintenance routine to keep it running. Different types of equipment have unique maintenance requirements. Keeping up with them is essential to maintaining both your inventory and your reputation as a rental business.

Another key component of your maintenance plan will be ensuring that customer maintenance requirements are communicated clearly. Many types of heavy equipment have active maintenance requirements that need to be carried out during the course of a regular working day, and customers need to know what their responsibilities are.

Effective maintenance management includes:

Preventative Maintenance Schedule:

  • Create digital or physical maintenance logs for each piece of equipment
  • Schedule maintenance based on hours of operation, not calendar days
  • Follow manufacturer recommendations for service intervals
  • Document all maintenance performed

Pre and Post-Rental Inspections:

  • Develop standardized checklists for each equipment type
  • Take date/time-stamped photos before and after each rental
  • Test all functions before sending equipment out
  • Train all staff on proper inspection procedures

Customer Education:

  • Provide clear instructions on daily maintenance requirements
  • Create simple reference guides with equipment
  • Consider requiring a brief orientation for first-time renters
  • Clearly outline consequences for neglecting maintenance

Proper maintenance is not just about preventing breakdowns—it’s about extending equipment life, maximizing return on investment, and ensuring customer satisfaction. When equipment performs reliably, customers are more likely to return and recommend your business to others.

Consider implementing maintenance management software that:

  • Tracks maintenance history for each asset
  • Sends alerts when service is due
  • Documents inspections digitally
  • Generates reports on maintenance costs per unit

This data becomes invaluable for making informed decisions about when to repair versus replace equipment and which brands offer the best reliability.

Step 8: Marketing Your Rental Business

With your business now running properly, it’s no time to get complacent. You should always be focused on growing your business and bringing in new customers. To do so, you’ll need an effective marketing strategy that targets your potential renters. There are plenty of different options that you can take advantage of.

You should have a website that includes search engine optimization so that it comes up higher in search rankings. Social media can also play a role and make your business easier to find. Don’t discount traditional marketing tactics like brochures, print ads, and flyers, either. You might even consider billboards or bus ads, depending on your area.

Effective marketing for rental businesses requires a mix of digital and traditional approaches:

Digital Marketing:

  • Create a professional, mobile-responsive website with clear rental categories
  • Implement local SEO to appear in “equipment rental near me” searches
  • Maintain active Google Business Profile and Yelp listings with current photos
  • Consider targeted paid search for high-value equipment terms
  • Use social media to showcase equipment in action and share customer success stories

Traditional Marketing:

  • Develop relationships with contractors and industry professionals
  • Join local contractor associations and chambers of commerce
  • Exhibit at trade shows and industry events
  • Create branded apparel and vehicle wraps for mobile advertising
  • Implement a referral program to reward existing customers

Educational content that helps customers select the right equipment for their needs positions your business as an expert resource rather than just another rental provider. This approach not only attracts the right customers but can also reduce issues stemming from customers renting inappropriate equipment for their applications.

Focus your marketing efforts on showcasing what makes your rental business unique:

  • Special equipment that competitors don’t carry
  • Extended operating hours
  • Delivery options
  • Technical expertise and support
  • Flexible rental terms

The most successful rental businesses track which marketing channels bring in the most valuable customers and adjust their budgets accordingly.

Step 9: Writing a Proper Rental Equipment Agreement

It’s important to ensure that you’re properly protected while running your business. That’s why you have insurance, a proper rental equipment agreement, and an equipment rental business license. Your rental contract establishes the roles and responsibilities of you and your customers, and it’s critical that you get it right.

A rental equipment agreement will protect you from costs due to negligent use of equipment by your renters. It also serves as an essential record of rental rates and schedules. You can check out our convenient rental agreement template to make sure you’re covering all of your bases.

Your rental agreement should include these key elements:

Clear Identification:

  • Detailed description of equipment being rented
  • Serial numbers and identification marks
  • Photos of equipment condition at time of rental
  • Documentation of any pre-existing damage

Terms and Conditions:

  • Rental period with specific start and end dates/times
  • Rate structure and payment terms
  • Late return penalties
  • Fuel policy (full tank out, full tank in)
  • Cleaning expectations

Liability and Damage Provisions:

  • Customer responsibility for damage beyond normal wear and tear
  • Lost equipment procedures and charges
  • Insurance requirements
  • Indemnification clauses

Safety and Operation Guidelines:

  • Proper operation instructions
  • Prohibited uses
  • Required operator qualifications
  • Safety equipment requirements

A thorough rental agreement is essential protection for your business. It sets clear expectations with customers and provides documented recourse if equipment is damaged, used improperly, or returned late.

Consider having your rental agreement reviewed by an attorney familiar with your state’s rental equipment laws, as requirements vary by jurisdiction. Many rental operators now use digital agreements that include time-stamped signatures and photos, creating a more complete record than paper documents.

Step 10: Assess if You’ll Collect a Deposit

Implementing a deposit system is a critical decision for rental businesses that can significantly impact cash flow, customer experience, and risk management. A well-designed deposit policy protects your assets while remaining reasonable for customers.

When setting up your deposit system, consider these options:

Security Deposit Types:

  • Credit Card Authorization: Place a hold on a credit card without processing a charge
  • Cash Deposit: Collect actual funds to be returned upon satisfactory equipment return
  • Damage Waiver: Offer an option to pay a non-refundable fee instead of a larger deposit

Setting Appropriate Amounts:

  • For lower-value equipment: 10-25% of replacement cost
  • For higher-value equipment: Fixed amount based on potential repair costs
  • For high-risk customers (first-time renters): Higher percentage or full replacement coverage

The deposit amount should be meaningful enough to encourage proper care of equipment but not so high that it discourages rentals. Many rental businesses use a tiered approach based on:

  • Equipment value and replacement cost
  • Customer rental history
  • Duration of rental
  • Type of customer (homeowner vs. contractor)

A tiered deposit system that rewards repeat customers with reduced deposit requirements can build loyalty while maintaining protection for your assets. New customers may face higher deposit requirements until they establish a track record of responsible equipment use.

When implementing deposits, ensure your process includes:

  • Clear documentation of deposit amount and return conditions
  • Transparent timeline for deposit return processing
  • Well-defined damage assessment procedures
  • Training for staff on handling deposit disputes

Consider offering damage waiver programs as an alternative to traditional deposits. These programs charge customers a non-refundable fee (typically 10-15% of the rental cost) that covers potential damage, reducing both administrative work and customer friction.

Step 11: Offer Training or Operator Support as an Up-sell

Creating additional revenue streams through training and operator support can significantly increase your profitability while improving customer satisfaction and safety. This value-added service differentiates your business from competitors who simply hand over equipment without education.

Consider implementing these training and support options:

Basic Orientation (Free):

  • Quick overview of controls and basic operation
  • Safety features and emergency shutdown procedures
  • Loading/unloading instructions
  • Basic troubleshooting tips

Comprehensive Training (Paid):

  • In-depth instruction on advanced features and techniques
  • Hands-on practice with instructor supervision
  • Efficiency and productivity tips
  • Application-specific training

Operator Services (Paid):

  • Trained operators available for hourly/daily hire
  • Full-service options where your staff delivers, operates, and returns equipment
  • Technical advisors who can visit job sites to ensure proper equipment usage
  • Remote support via phone or video chat

When pricing these services, consider:

  • Hourly rates for training (typically $75-$150 depending on equipment complexity)
  • Package deals that combine equipment rental with training sessions
  • Discount incentives for first-time renters who opt for training
  • Monthly subscription services for regular customers who need ongoing support

Many customers value proper training and are willing to pay for it, especially when dealing with complex or potentially dangerous equipment. This not only creates an additional revenue stream but also typically results in reduced equipment damage and maintenance costs.

Training services offer multiple benefits beyond revenue:

  • Reduced equipment damage and maintenance costs
  • Lower liability exposure
  • Improved customer satisfaction and retention
  • Differentiation from big-box rental competitors who offer minimal support

To implement training effectively, develop standardized curricula for each equipment category, create visual aids and reference materials, and consider certifying your trainers through manufacturer programs when available.

Step 12: Set Up Proper Drop Off & Maintenance Procedures

Establishing streamlined procedures for equipment returns and maintenance is crucial for operational efficiency and inventory readiness. These processes directly impact your ability to quickly turn around equipment for the next customer while maintaining equipment condition.

Implement these key elements in your drop-off process:

Equipment Return Workflow:

  • Designated drop-off area clearly marked for customers
  • Digital check-in system that records return time and condition
  • Immediate inspection with customer present when possible
  • Clear documentation of any new damage or issues

Post-Rental Inspection:

  • Comprehensive checklist specific to each equipment type
  • Fluid level checks and replenishment
  • Cleaning and decontamination procedures
  • Operational testing of all functions
  • Documentation with photos and notes

Maintenance Triage:

  • Three-category system: Ready for Rent, Needs Minor Service, Needs Major Repair
  • Clear visual indicators of equipment status (tags, digital status boards)
  • Defined workflow for moving equipment through maintenance process
  • Accountability for each step in the process

A systematic approach to equipment returns and maintenance can dramatically improve fleet availability and condition. When equipment is properly inspected, serviced, and prepared after each rental, it extends equipment life and ensures the next customer receives it in optimal condition.

Technology can significantly improve your drop-off and maintenance operations:

  • Digital inspection forms that automatically create work orders
  • Maintenance tracking software that shows equipment history
  • Automated notifications when service intervals are approaching
  • Inventory management systems that show equipment status

Train all staff thoroughly on these procedures and regularly audit compliance to ensure consistent implementation. The most successful rental businesses treat the drop-off process with the same importance as the initial rental, recognizing that proper handling at this stage sets the foundation for the next rental cycle.

Step 13: Review & Adjust

The equipment rental market is dynamic, with changing customer needs, equipment innovations, and competitive pressures. Successful rental operators consistently review performance metrics and adjust their strategy accordingly.

Implement a regular review process focused on these key areas:

Equipment Performance Metrics:

  • Utilization rate (days rented ÷ days available)
  • Revenue per unit
  • Maintenance cost as percentage of revenue
  • Time to ROI on each asset
  • Customer feedback by equipment type

Pricing Effectiveness:

  • Competitive position in the market
  • Seasonal adjustment results
  • Special promotion performance
  • Discount impact on utilization
  • Price elasticity by equipment category

Operational Efficiency:

  • Time from return to ready-for-rent
  • Delivery and pickup costs vs. revenue
  • Staff productivity metrics
  • Customer wait times
  • Administrative costs per transaction

Reviewing these metrics can reveal underperforming equipment categories despite high utilization. By adjusting pricing, maintenance processes, and target customers for these items, you can transform them into profitable segments of your business.

The most successful rental operators approach adjustment methodically:

  1. Establish clear performance benchmarks for each business area
  2. Collect data consistently and systematically
  3. Review metrics on defined intervals (weekly, monthly, quarterly)
  4. Identify underperforming areas and investigate root causes
  5. Implement specific, measurable changes
  6. Track results of changes and refine approach

Consider implementing regular “fleet rationalization” meetings where you make data-driven decisions about:

  • Which equipment to add to your fleet
  • Which units to replace with newer models
  • Which categories to expand or contract
  • Which equipment to sell while it still holds value

This continuous improvement cycle ensures your rental business remains aligned with market demands while maintaining optimal profitability.

Calculating Startup or Initial Equipment Rental Costs

Understanding the full financial picture of starting an equipment rental business is crucial for proper planning and securing appropriate funding. Initial costs extend far beyond just purchasing equipment.

Here’s a breakdown of typical startup costs for an equipment rental business:

Equipment Acquisition (50-70% of startup costs):

  • Initial fleet purchase or lease payments
  • Delivery and setup costs
  • Customization and branding
  • Attachments and accessories
  • Initial parts inventory

Facility Costs (15-25% of startup costs):

  • Lease deposits and first/last month payments
  • Facility improvements and signage
  • Security systems and equipment
  • Storage racks and organizational systems
  • Office setup and furniture

Operational Infrastructure (10-15% of startup costs):

  • Rental management software
  • Computer systems and point-of-sale equipment
  • Delivery vehicles and trailers
  • Tools and maintenance equipment
  • Initial insurance premiums

Marketing and Launch (5-10% of startup costs):

  • Website development
  • Initial advertising campaign
  • Signage and branding materials
  • Grand opening event
  • Promotional materials

As a general rule of thumb, many equipment rental businesses require between $200,000 and $500,000 in startup capital for a modest operation, though this varies significantly based on equipment type and scale. Light equipment rentals may start with less, while heavy equipment rental businesses typically require more substantial investment.

When calculating your startup needs:

  1. Create a detailed inventory list with specific equipment models and quantities
  2. Obtain multiple quotes for each major expense category
  3. Include a contingency fund (15-20% of total budget)
  4. Calculate operating capital needed until reaching breakeven (typically 6-12 months)
  5. Consider financing options including equipment loans, SBA loans, and leasing programs

Many successful rental operators recommend a phased approach to equipment acquisition, starting with high-demand, lower-cost items and reinvesting profits into expanding inventory as the business grows.

Other Tips for Renting Out Tools to Medium & Heavy Duty Equipment

Beyond the step-by-step process outlined above, here are additional insights that can help you build a thriving equipment rental operation:

Build Relationships with Contractors

The rental industry is fundamentally relationship-driven. When you position yourself as a trusted partner to contractors rather than just a vendor, you build loyalty that transcends price competition.

Develop a customer relationship strategy that includes:

  • Regular check-ins with key customers
  • Understanding their project pipelines
  • Offering flexible solutions during their busy seasons
  • Providing technical expertise beyond just equipment rental

Invest in Equipment Tracking Technology

Equipment loss and theft can quickly erode profits. Modern GPS and telematics solutions provide real-time location tracking and usage data that can:

  • Reduce unauthorized use
  • Optimize maintenance schedules
  • Improve utilization rates
  • Verify proper equipment operation

GPS tracking on mid-size and larger equipment can dramatically reduce theft losses while improving utilization by tracking actual usage hours versus reported hours.

Consider Specialization

Rather than competing with big-box rental stores on general equipment, many successful independent rental businesses specialize in niche markets:

  • Industry-specific equipment (oil and gas, specialty construction)
  • Event-related equipment
  • Environmental or green building equipment
  • Specialty tools for specific trades

Specializing in one equipment category allows you to become the recognized expert in your market, leading contractors to seek your advice even when they’re not actively renting.

Develop Efficient Delivery Systems

In today’s fast-paced construction environment, the ability to deliver equipment quickly and reliably is a major competitive advantage, particularly for independent operators competing against national chains.

Invest in:

  • Reliable delivery vehicles
  • Streamlined dispatch systems
  • Digital delivery confirmation tools
  • Clear delivery windows and expectations

Create Multiple Revenue Streams

The most profitable rental businesses often develop complementary revenue sources:

  • Equipment sales (new and used)
  • Parts and supplies sales
  • Repair services for customer-owned equipment
  • Training and certification programs
  • Extended warranty programs

Adding repair services for contractor-owned equipment not only creates additional income but brings contractors into your facility where they often discover additional equipment needs.

Embrace Technology

Modern rental management software can transform your operational efficiency:

  • Online reservation and payment systems
  • Digital contracts and signatures
  • Automated maintenance scheduling
  • Utilization and ROI reporting
  • Customer relationship management

While investing in comprehensive rental software requires upfront expense, it typically pays dividends through reduced administrative time and increased rental volume from online booking capabilities.

Stay Educated on Industry Trends

The equipment rental industry continues to evolve with:

  • Electrification replacing traditional combustion equipment
  • Remote monitoring and operation capabilities
  • Sustainability and emissions regulations
  • Autonomous and semi-autonomous equipment
  • Advanced safety features and requirements

Staying ahead of these trends allows you to make strategic inventory decisions and position your business as forward-thinking.

Start Your Rental Equipment Business Right with Quipli

With so much planning and commitment going into your equipment rental business, you should implement the best possible inventory and reservation management system.

Quipli provides rental businesses with an easy-to-use and versatile solution that integrates your inventory with online reservations, along with other benefits:

  • Complete inventory management across multiple locations
  • Customer-facing online storefront for 24/7 booking
  • Digital contracts and payment processing
  • Automated maintenance scheduling
  • Comprehensive reporting on equipment performance

You can reach out to our team today to book a demo and find out what Quipli can do for your equipment rental business.

Request a Demo

How Much Does an Excavator Cost?

Excavators are a major workhorse at construction sites and in the landscaping industry. Just as an excavator can make a solid investment for any construction company, buying an excavator for your equipment rental business can provide a solid rate of return.

How much does an excavator cost, exactly? The answer depends on a number of factors. Here’s what you can expect when you’re in the market for an excavator.

How Much Does an Excavator Cost?

The cost of excavator equipment depends on several factors, such as:

  • Age
  • Condition (if used)
  • Number of hours used
  • Size
  • Features and specifications
  • Model/brand

As you might expect, some machines are pricier than others.

Different brands can also represent greater levels of value. If you’re purchasing an excavator for your equipment rental business, a brand name can give you greater credibility but may increase the cost of purchase and maintenance.

Typical Excavator Price Ranges

How much is an excavator when buying brand-new? The price range can be anywhere from $100,000 to $500,000, depending on the aforementioned factors.

Some of the most popular brands (such as John Deere, Komatsu, and Caterpillar) can run to the higher end of the price spectrum, though they offer superior quality and value compared to other manufacturers.

The Lowest Costs You’ll Find for Excavators

The least expensive excavators are mini-excavators. Brand-new, these machines start at around $75,000. Used models can cost around $50,000 or even less. Full-sized excavators tend to be much more expensive, though used models will always offer a more affordable option.

How Much Does a Brand-New Excavator Cost?

A new excavator from the factory can cost anywhere from $80,000 to $500,000. The final price is dictated by factors like the brand, model, size, and specific features of the machinery itself. For instance, extra buckets and attachments can easily add between $5,000 and $10,000 to the final cost.

New Excavator Prices by Size

When purchasing a new excavator, size is one of the most significant factors affecting price. Here’s a breakdown of what you can expect to pay based on the size category:

  • Mini Excavators (1-6 tons): $80,000 – $110,000
  • Compact Excavators (7-10 tons): $120,000 – $180,000
  • Medium Excavators (11-25 tons): $190,000 – $300,000
  • Large Excavators (26-45 tons): $300,000 – $500,000+

For rental fleet operators, mid-size excavators (15-20 tons) often represent the sweet spot for rental profitability due to their versatility and wide appeal to contractors.

Pricing Factors and Add-ons for New Excavators

Several factors can significantly impact the final price of a new excavator:

  1. Brand Premium: Caterpillar, Komatsu, and John Deere typically command 15-25% higher prices than comparable models from brands like Bobcat or Kubota.
  2. Attachments: Beyond the standard bucket, additional attachments can substantially increase costs:
    • Compactors: $5,000 – $10,000
    • Grapples: $4,000 – $12,000
    • Augers: $3,000 – $7,000
    • Hydraulic breakers/hammers: $10,000 – $25,000
  3. Cab Features: Advanced climate control, premium seating, and enhanced operator displays can add $3,000 – $8,000.
  4. Technology Upgrades: GPS grading systems, telematics, and advanced control systems can add $15,000 – $30,000.
  5. Warranty Extensions: Extended warranty coverage beyond the standard term can add 5-10% to the purchase price.

For rental businesses, investing in versatile attachments can increase both rental rates and utilization rates, improving your return on investment.

How much are excavators when you buy used? Used excavators typically sell for about 25% of the original price, which naturally makes these an affordable option for certain types of operators and business owners.

With such a steep discount, what are the advantages of buying a new excavator? Generally, a brand-new machine will offer benefits like:

  • The full manufacturer’s warranty
  • Better overall condition
  • Less chance of requiring maintenance
  • Access to the latest features and specifications

However, there are also some disadvantages to buying a new model, such as:

  • Higher upfront cost
  • Delayed production schedules
  • Unnecessary or redundant features
  • Fewer product reviews to inform your buying decision

The main advantage of a used excavator is the money you’ll save, which can be a good option for users who only need an excavator for a short period. The flip side is that used excavators often require more frequent service, and depending on the age and condition of the machine itself, they may not perform at the same level as newer models.

Professional rental companies might consider investing in a new excavator, as this will ensure the longest lifespan of the equipment itself and guarantee a higher rate of return. The added cost might even be factored into the price of the rental agreement, allowing you to balance the performance of a new machine with the added costs of a brand-new model.

How Much Does a Used Excavator Cost?

Used excavators offer a significant cost advantage for both contractors and rental fleet operators. Generally, you can expect to pay anywhere from 40-70% of the original price depending on the age, condition, and usage hours of the machine.

Used Excavator Prices by Size

Here’s what you can expect to pay for used excavators in different size categories:

  • Mini Excavators (1-6 tons): $20,000 – $60,000
  • Compact Excavators (7-10 tons): $40,000 – $100,000
  • Medium Excavators (11-25 tons): $80,000 – $180,000
  • Large Excavators (26-45 tons): $150,000 – $350,000

When evaluating used excavators for your rental fleet, machines with 2,000-4,000 hours typically offer the best balance of value and remaining useful life.

Factors Affecting Used Excavator Pricing

Several key factors can significantly impact the price of a used excavator:

  1. Hours of Operation: This is the most critical factor affecting resale value. Machines with higher hours will sell for substantially less, with pricing dropping approximately 5-10% for every additional 1,000 hours.
  2. Age: Even with low hours, older models will sell for less due to outdated technology and increased maintenance concerns.
  3. Maintenance History: Well-documented service records can add 10-15% to the resale value.
  4. Undercarriage Condition: Since replacing an undercarriage can cost $15,000-$30,000 on medium-sized excavators, poor undercarriage condition can significantly reduce the machine’s value.
  5. Hydraulic System Health: Leaks or sluggish performance can reduce value by 20% or more.
  6. Cosmetic Condition: While primarily aesthetic, a well-maintained appearance suggests overall care and can increase value by 5-10%.

For rental businesses, machines with 3-5 years of age often present the optimal balance between acquisition cost and remaining rental life.

How Much Does a Medium Excavator Cost?

Medium excavators, ranging from 11 to 25 tons, represent an important category for both construction companies and rental businesses. These versatile machines handle a wide variety of applications, from foundation work to utility installation.

New Medium Excavator Pricing

New medium excavators typically range from $190,000 to $300,000 depending on the manufacturer, features, and exact size within the category. Premium brands like Caterpillar and Komatsu tend to command prices at the higher end of this range, while brands like Hyundai and Kubota may offer more competitive pricing.

Mid-tier models around 15-20 tons (such as the Cat 320 or Komatsu PC210) are particularly popular in rental fleets due to their versatility and broad appeal to contractors.

Used Medium Excavator Pricing

Used medium excavators typically sell for:

  • 1-3 years old: $130,000 – $220,000
  • 4-7 years old: $85,000 – $150,000
  • 8+ years old: $50,000 – $90,000

For rental businesses, machines in the 4-7 year range often provide the best balance between acquisition cost and remaining rental life, particularly if they have been well-maintained and have under 5,000 hours.

Key Features for Rental Businesses

When selecting medium excavators for a rental fleet, pay special attention to:

  • Fuel efficiency (can be a major selling point for renters)
  • Ease of transportation (machines under 20 tons are often easier for customers to transport)
  • Attachment compatibility (versatility increases utilization rates)
  • Operator comfort (comfortable cabs result in happier rental customers)
  • Durability of components (reduces maintenance costs and downtime)

Medium excavators typically generate rental returns of 2-3% of their purchase price per week, making them among the most profitable items in many rental fleets.

How Much Does a Large Excavator Cost?

Standard-sized and large excavators can weigh anywhere from ten to 45 tons. Brand-new, these machines cost between $200,000 and $600,000, on average, while used models can run as low as $50,000.

This is where the brand can make a dramatic difference. A new Caterpillar or Komatsu machine will likely be priced higher than competitors’ models, though they also offer advanced features to add value to their products.

New Large Excavator Pricing

For new large excavators in the 25-45 ton range, expect to pay:

  • 25-30 tons: $300,000 – $400,000
  • 31-40 tons: $400,000 – $500,000
  • 41-45 tons: $500,000 – $600,000+

Features like advanced hydraulics, GPS grading systems, and specialized boom configurations can add $50,000 or more to these base prices.

Used Large Excavator Pricing

Used large excavators typically sell for:

  • 1-3 years old: $200,000 – $450,000
  • 4-7 years old: $150,000 – $300,000
  • 8+ years old: $80,000 – $200,000

For rental businesses, large excavators represent significant investments but can command premium rental rates. Operators should carefully assess local market demand before adding these machines to their fleets.

How Much Does a Small Excavator Cost?

Compact or mini-excavators typically weigh less than six tons. A mini-excavator can be slightly larger but generally won’t exceed ten tons. Small excavators often start at around $75,000 for a new model. Used mini-excavators can be considerably cheaper — it’s not unusual to see used excavators for sale in the $10,000-$20,000 range, depending on brand and condition.

New Small Excavator Pricing

For new small excavators in the 6-10 ton range, expect to pay:

  • 6-7 tons: $120,000 – $150,000
  • 8-10 tons: $150,000 – $180,000

Popular models in this category include the Caterpillar 308, Komatsu PC88, and Kubota KX080, which typically range from $130,000 to $170,000 depending on options.

Used Small Excavator Pricing

Used small excavators typically sell for:

  • 1-3 years old: $80,000 – $120,000
  • 4-7 years old: $50,000 – $90,000
  • 8+ years old: $25,000 – $60,000

For rental businesses, small excavators offer excellent versatility and are popular with residential contractors and utility companies. They typically provide rental returns of 1.5-2% of their purchase price per week.

How Much Does a Mini Excavator Cost?

Mini excavators, weighing between 1 and 6 tons, have become increasingly popular for both contractors and rental businesses due to their versatility, maneuverability, and lower transportation costs.

New Mini Excavator Pricing

New mini excavators typically range from $30,000 to $110,000 depending on the size, brand, and features:

  • 1-2 tons: $30,000 – $60,000
  • 3-4 tons: $60,000 – $85,000
  • 5-6 tons: $85,000 – $110,000

Premium brands like Takeuchi and Caterpillar tend to command 10-15% higher prices than more budget-friendly options like Yanmar or Kubota.

Used Mini Excavator Pricing

Used mini excavators typically sell for:

  • 1-3 years old: $20,000 – $75,000
  • 4-7 years old: $15,000 – $50,000
  • 8+ years old: $10,000 – $30,000

Mini excavators often retain their value better than larger machines due to their broad appeal and versatility.

Benefits for Rental Businesses

Mini excavators offer several advantages for rental businesses:

  1. Higher Utilization Rates: Their versatility and broad market appeal typically result in utilization rates 10-15% higher than larger machines.
  2. Lower Transportation Costs: Most mini excavators can be transported on trailers pulled by standard pickup trucks, reducing delivery costs.
  3. Broader Customer Base: These machines appeal to both professional contractors and DIY/homeowner renters, expanding your potential customer base.
  4. Lower Maintenance Costs: Simpler designs typically result in 20-30% lower maintenance costs compared to larger excavators.

Mini excavators typically generate rental returns of 1-2% of their purchase price per week, with higher-than-average utilization rates making them extremely profitable additions to rental fleets.

Common Excavator Operation Costs to Consider

When evaluating the total cost of ownership for excavators in your rental fleet, it’s essential to look beyond the initial purchase price. Operational costs can significantly impact your profitability over the machine’s lifetime.

Fuel Consumption

Fuel costs typically represent 30-40% of an excavator’s operating expenses:

  • Mini excavators (1-6 tons): 1-2 gallons per hour
  • Small excavators (7-10 tons): 2-3 gallons per hour
  • Medium excavators (11-25 tons): 3-6 gallons per hour
  • Large excavators (26-45 tons): 6-12 gallons per hour

At current diesel prices, this translates to approximately $6-$75 per hour in fuel costs depending on the machine size.

Maintenance Expenses

Regular maintenance is crucial for maximizing the lifespan and rental productivity of your excavators:

  1. Routine Maintenance: Expect to spend 2-3% of the machine’s purchase price annually on regular service, including:
    • Oil and filter changes: $150-$600 every 250-500 hours
    • Hydraulic filter replacements: $200-$500 every 500-1,000 hours
    • Air filter changes: $100-$300 every 500 hours
  2. Major Repairs: Budget for occasional significant repairs:
    • Undercarriage rebuilds: $15,000-$40,000 every 3,000-5,000 hours
    • Engine overhauls: $10,000-$30,000 every 8,000-10,000 hours
    • Hydraulic pump replacements: $5,000-$15,000 every 6,000-8,000 hours

For rental businesses, implementing a proactive maintenance program typically reduces downtime by 30-40% compared to reactive maintenance approaches.

Insurance Costs

Insurance for excavators in rental fleets typically costs 1-2% of the machine’s value annually. Coverage typically includes:

  • Physical damage protection
  • Liability coverage
  • Theft protection

Many rental businesses also offer damage waiver options to customers, which can become an additional revenue stream while reducing insurance claims.

Transportation Expenses

Moving excavators between job sites represents a significant operational cost:

  • Mini excavators: $150-$300 per move
  • Small/medium excavators: $300-$600 per move
  • Large excavators: $600-$1,200+ per move

For rental businesses, offering delivery services can be both a valuable revenue stream and a competitive advantage. Many rental companies charge 1-2% of the machine’s value for delivery and pickup.

Storage and Yard Costs

Storing excavators requires significant space:

  • Mini excavators: 100-200 square feet per machine
  • Small/medium excavators: 300-500 square feet per machine
  • Large excavators: 600-1,000+ square feet per machine

For rental operations in urban areas with high real estate costs, compact machines offer significant advantages in terms of storage efficiency.

Depreciation

Excavators typically depreciate at the following rates:

  • Year 1: 20-25% loss in value
  • Years 2-5: 10-15% annual loss in value
  • Years 6+: 5-10% annual loss in value

Understanding these depreciation curves is crucial for timing fleet rotations and maximizing the return on your investment.

Average Excavator Rental Rates

Rental rates for excavators vary based on size, features, region, and rental duration. Understanding market rates is crucial whether you’re renting out excavators or considering whether to rent or buy for your own projects.

Daily Rental Rates

Based on Quipli’s rental market data from over 500 rental companies nationwide, here are the average daily rental rates by excavator size:

  • Mini Excavators (1-6 tons): $250 – $400 per day
  • Small Excavators (7-10 tons): $350 – $600 per day
  • Medium Excavators (11-25 tons): $550 – $900 per day
  • Large Excavators (26-45 tons): $800 – $1,500+ per day

Weekly Rental Rates

Weekly rates typically offer a 20-30% discount compared to daily rates:

  • Mini Excavators: $750 – $1,200 per week
  • Small Excavators: $1,050 – $1,800 per week
  • Medium Excavators: $1,650 – $2,700 per week
  • Large Excavators: $2,400 – $4,500+ per week

Monthly Rental Rates

Monthly rates usually provide a 40-50% discount compared to daily rates:

  • Mini Excavators: $2,000 – $3,200 per month
  • Small Excavators: $2,800 – $4,800 per month
  • Medium Excavators: $4,400 – $7,200 per month
  • Large Excavators: $6,400 – $12,000+ per month

Factors Affecting Rental Rates

Several factors can influence excavator rental rates:

  1. Regional Variations: Rates in urban areas and regions with high construction activity typically run 15-25% higher than in rural areas.
  2. Seasonal Demand: Rates during peak construction seasons (typically spring and summer) may be 10-20% higher than off-season rates.
  3. Attachments: Additional attachments such as hammers, augers, or grapples typically add $50-$300 per day to the base rental rate.
  4. Operator Inclusion: Rates for excavators with operators typically run 50-100% higher than equipment-only rentals.

For rental business operators, monitoring utilization rates alongside pricing is crucial. The industry benchmark for healthy utilization is 60-70% for excavators, and pricing strategies should be adjusted seasonally to maintain this target.

Recommended Ways to Buy Excavators

The process of purchasing excavators differs significantly depending on whether you’re an individual buyer or an equipment rental operator. Understanding the best procurement approaches can save you time, money, and headaches.

For Individual Buyers

If you’re purchasing an excavator for your own use, consider these approaches:

  1. Authorized Dealers: The traditional route offers several advantages:
    • Factory warranty coverage
    • Financing options
    • Relationship for future service needs
    • Trade-in opportunities
  2. However, expect to pay 5-10% more than other channels.
  3. Equipment Auctions: Both in-person and online auctions can offer significant savings:
    • Potential for 20-40% lower prices than retail
    • Opportunity to inspect machines before bidding (at in-person auctions)
    • Wide selection of inventory
  4. The downsides include no warranties, limited inspection time, and potential for hidden issues.
  5. Private Sales: Purchasing directly from another contractor can yield savings:
    • No dealer markup (typically 15-20% lower prices)
    • Opportunity to see the machine’s working environment
    • Potential to learn operational history firsthand
  6. However, these sales offer limited recourse if problems arise after purchase.
  7. Online Marketplaces: Platforms like Boom & Bucket, Machinery Trader, Equipment Trader, and Facebook Marketplace provide:
    • Wide selection across geographic areas
    • Ability to compare prices easily
    • Direct communication with sellers
  8. The challenge is verifying machine condition without in-person inspection.

For Equipment Rental Operators

Rental businesses have additional considerations and opportunities when purchasing excavators:

  1. Fleet Deals with Manufacturers: Establishing relationships with manufacturers can provide:
    • Volume discounts (typically 5-15% off MSRP)
    • Preferential financing terms
    • Custom specification options
    • Priority service scheduling
    • Marketing support
  2. Many manufacturers offer specific rental fleet programs with flexible terms.
  3. Rent-to-Own Programs: Some manufacturers and dealers offer rental purchase options (RPOs):
    • Portion of rental payments apply to purchase
    • Opportunity to test machines before committing
    • Lower initial capital requirements
    • Tax advantages in certain scenarios
  4. Used Equipment from Larger Rental Chains: National rental companies regularly cycle their fleets:
    • Machines typically available at 40-60% of new price
    • Comprehensive maintenance records
    • Consistent operating environments
    • Often still under original warranty
  5. Dealer Rental Fleet Conversions: Equipment dealers often maintain rental fleets:
    • Low-hour machines (typically under 1,000 hours)
    • Full dealer service history
    • Often sold with extended warranty options
    • 20-30% below new pricing
  6. Financial Strategies:
    • Financing: Many manufacturers offer competitive rates, often 1-2% lower than bank financing
    • Leasing: Provides tax advantages and conserves capital
    • Equipment-backed lines of credit: Provides flexibility for opportunistic purchases

For rental businesses, strategic timing of purchases can yield significant savings, with the best deals typically available in Q4 when manufacturers and dealers are motivated to meet annual sales targets.

Which Excavator Is Right for You?

Choosing the right excavator is an important decision. Explore our guide on what to look for when buying an excavator to get more information.

If you’re an equipment operator, you’ll want to select a model that has the features you need for the type of work you do, whether it’s construction, landscaping, or other projects. Likewise, equipment rental companies should invest in tools that offer versatility and value, ensuring a high rate of return.

For rental businesses specifically, consider these additional factors:

  1. Market Demand: Research the most commonly requested sizes and configurations in your area
  2. Transport Requirements: Ensure you can efficiently deliver the machines to customers
  3. Maintenance Support: Confirm local dealer service availability for your chosen brand
  4. Attachment Compatibility: Select machines that work with a wide range of attachments to increase versatility
  5. Durability: Focus on brands and models with proven durability in rental applications

By carefully evaluating these factors alongside the pricing information provided in this guide, you’ll be well-positioned to make informed excavator purchasing decisions that maximize your return on investment.

The Most Rented & Profitable Construction Equipment in 2025

ANALYSIS UPDATED 4/4/2025

The construction sector continues to grow steadily, making equipment rental a lucrative business opportunity. Whether you’re already operating a rental business or considering starting one, understanding which equipment is most in-demand and profitable is critical to figure out exactly what kinds of equipment your customers want.

In this comprehensive guide, we’ll explore the most frequently rented construction equipment based on search volume data, analyze profitability factors for each category, and provide insights to help rental business owners make informed decisions about their fleet investments.

Note: We used an online search tool called Ahrefs to find the numbers behind how many people are searching for common construction equipment each month, so we could help find what equipment has the highest demand in the construction equipment rental industry.

Table Of Contents

  1. General Tool Rentals vs. Heavy Equipment
  2. Top 10 Most Popular General Tool Rentals
  3. Top 10 Most Popular Heavy Equipment Rentals
  4. Complete List: Top 25 Most Profitable Construction Equipment Rentals
  5. Tracking Your Most Rented Equipment

General Tool Rentals vs. Heavy Equipment: Understanding the Market

The construction equipment rental market broadly splits into two main categories: general tools and heavy equipment. Each serves different customer segments and comes with unique profitability factors.

General Tool Rentals typically cater to:

  • DIY homeowners
  • Small contractors
  • Renovation specialists
  • Property managers

These rentals generally have lower acquisition costs but higher turnover rates, making them accessible entry points for new rental businesses.

Heavy Equipment Rentals typically serve:

  • Commercial contractors
  • Construction companies
  • Infrastructure developers
  • Mining and industrial operations

While heavy equipment demands higher initial investment, it often commands premium rental rates and better profit margins per rental.Understanding which market segment aligns with your business goals and capital resources is crucial before making investment decisions. The overall construction equipment rental market exceeded $147.4 billion in 2024 and is predicted to grow at about 6.2% CAGR from 2025 to 2034, according to GMInsights.

Top 10 Most Popular General Tool Rentals

Based on our analysis of search volume data across the United States and Canada, these are the most frequently searched general tool rentals, indicating strong market demand:

1. Stump Grinder

Average Monthly Search Volume: 25,300

Estimated Rental Price: $145-$225 per day

Profitability Analysis: Stump grinders remain one of the most profitable general tools due to their specialized nature and high daily rates. Current rental prices range from approximately $145 for smaller units to $225 for larger models. With limited competitor options and consistent demand, these machines typically achieve 60-70% utilization rates with minimal maintenance costs when properly maintained. Their specialized purpose means customers rarely have alternatives, ensuring steady demand.

2. Pressure Washer

Average Monthly Search Volume: 9,700

Estimated Rental Price: $40-$100 per day

Profitability Analysis: While pressure washers have lower daily rates than many other tools, their simple operation means lower maintenance costs and higher availability. They typically see seasonal spikes in spring and fall, with utilization rates exceeding 80% during peak periods. Their low acquisition cost ($500-$1,500) enables rental businesses to achieve ROI within 15-25 rental days.

3. Trencher

Average Monthly Search Volume: 9,500

Estimated Rental Price: $125-$300 per day

Profitability Analysis: Trenchers offer excellent profit potential due to their specialized function and relatively low maintenance requirements. Walk-behind models provide particularly strong returns with acquisition costs of $3,000-$8,000. According to industry data, the average rental rates for trenchers range between $125 and $300 per day, with specialized attachments for equipment like Dingos running about $130 per day. They’re especially profitable in regions with high construction or landscaping activity.

4. Auger

Average Monthly Search Volume: 7,200

Estimated Rental Price: $60-$135 per day

Profitability Analysis: Current market rates show one-man post hole diggers renting for around $60 per day, two-man models for $75, and hydraulic post hole diggers commanding $135 daily. Augers offer exceptional ROI potential with purchase prices ranging from $500-$3,000 depending on size and power source. Their specialized application means less competition from big-box retailers, and their durable construction translates to lower maintenance costs.

5. Paint Sprayer

Average Monthly Search Volume: 6,900

Estimated Rental Price: $115 per day

Profitability Analysis: Paint sprayers have seen significant demand growth as DIY renovations increase. Current pricing shows airless paint sprayers with wheels renting for approximately $115 per day. With low acquisition costs ($500-$2,000) and minimal maintenance requirements, these tools typically achieve ROI within 20-25 rentals. Their lightweight, portable nature also reduces transportation and storage costs, enhancing overall profitability.

6. Sod Cutter

Average Monthly Search Volume: 6,300

Estimated Rental Price: $160 per day

Profitability Analysis: Current market data shows 18″ sod cutters renting for approximately $160 per day. Sod cutters demonstrate strong seasonal profitability, particularly in spring and fall. With acquisition costs around $2,000-$3,500, these machines can achieve ROI in a single season of 25-35 rentals. Their specialized function and relatively low competition make them highly profitable additions to any rental fleet.

7. Floor Sander

Average Monthly Search Volume: 6,200

Estimated Rental Price: $50-$100 per day

Profitability Analysis: Floor sanders combine steady demand with relatively low maintenance requirements. Their specialized nature means customers have few alternatives, ensuring consistent utilization rates of 50-60%. With machine costs ranging from $1,000-$4,000, rental businesses typically achieve ROI within 30-45 rental days while earning additional revenue from sandpaper sales.

8. Log Splitter

Average Monthly Search Volume: 5,600

Estimated Rental Price: $115 per day

Profitability Analysis: Current market rates show towable log splitters renting for approximately $115 per day. Log splitters show strong seasonal profitability with peak demand in fall and winter months. Models costing $1,000-$3,000 typically achieve ROI within 30-40 rental days. Their simple mechanical operation means lower maintenance costs, while their seasonal nature allows rental businesses to adjust pricing during peak periods, maximizing revenue potential.

9. Concrete Mixer

Average Monthly Search Volume: 5,050

Estimated Rental Price: $40-$200 per day

Profitability Analysis: Concrete mixers offer strong profit margins due to their durable construction and minimal maintenance requirements. With acquisition costs of $1,000-$5,000 depending on size, these machines typically achieve ROI within 25-40 rental days. Their essential role in construction projects ensures steady demand throughout the building season.

10. Chainsaw

Average Monthly Search Volume: 3,450

Estimated Rental Price: $65-$80 per day

Profitability Analysis: Gas-powered chainsaws typically rent for around $65 per day, with pole saws (specialized chainsaws for tree branches) commanding about $80 daily. Chainsaws offer excellent profit potential with acquisition costs of $300-$1,000 and minimal storage requirements. They typically achieve ROI within 15-20 rental days. However, they require more maintenance and safety oversight than other tools, slightly increasing operational costs. Offering blade sharpening services can create additional revenue streams.

Top 10 Most Popular Heavy Equipment Rentals

Heavy equipment rentals typically command higher daily rates and often serve commercial clients with larger projects:

1. Scissor Lift

Average Monthly Search Volume: 26,700

Estimated Rental Price: $100-$250 per day

Profitability Analysis: Scissor lifts consistently rank among the most profitable heavy equipment rentals due to their versatility across industries. According to industry data, scissor lifts rent for between $100 and $250 per day, with the average monthly rental rate of electric self-propelled scissor lifts being approximately $1,316. With acquisition costs of $5,000-$30,000, these machines typically achieve ROI within 90-120 rental days based on 50% utilization rates.

2. Forklift

Average Monthly Search Volume: 22,200

Estimated Rental Price: $225-$750 per day

Profitability Analysis: Forklifts offer strong profit potential with daily rates that can recoup the $15,000-$50,000 investment within 80-120 rental days at 50% utilization. If a forklift costs $20,000 with additional overhead costs of $2,500, and is rented at a rate of $400 per day, the breakeven point would be reached after approximately 56 rental days. Their versatility across construction, warehousing, and industrial applications ensures year-round demand with minimal seasonal fluctuations.

3. Scaffolding

Average Monthly Search Volume: 13,400

Estimated Rental Price: $15-$40 per day (per section)

Profitability Analysis: Scaffolding offers exceptional ROI potential despite its lower daily rate because it’s typically rented in large quantities. With minimal maintenance requirements and long service life (10+ years), scaffolding sets can achieve ROI within 50-70 rental days. Their modular nature allows rental businesses to replace individual components rather than entire sets, further enhancing long-term profitability.

4. Excavator

Average Monthly Search Volume: 10,400

Estimated Rental Price: $225-$750 per day

Profitability Analysis: Standard excavators offer strong profit potential with daily rates that can recoup the $50,000-$200,000 investment within 200-250 rental days at 40% utilization. While they require significant initial capital, their essential role in major construction projects allows for premium pricing and relatively stable demand throughout the construction season.

5. Mini-Excavator

Average Monthly Search Volume: 10,100

Estimated Rental Price: $200-$500 per day

Profitability Analysis: Mini-excavators represent one of the most profitable equipment categories due to their versatility and strong demand across residential and commercial sectors. With acquisition costs of $20,000-$60,000, these machines typically achieve ROI within 100-150 rental days at 50% utilization. Their compact size reduces transportation costs while their versatility ensures higher utilization rates than larger specialized equipment.

6. Boom Lift

Average Monthly Search Volume: 9,200

Estimated Rental Price: $250-$400 per day

Profitability Analysis: Boom lifts offer excellent profit potential with daily rates that typically recover the $25,000-$75,000 investment within 120-180 rental days at 50% utilization. Their specialized nature and essential role in construction, maintenance, and industrial applications ensure steady demand with relatively low competition from alternative solutions.

7. Backhoe

Average Monthly Search Volume: 6,050

Estimated Rental Price: $150-$500 per day

Profitability Analysis: Backhoes combine excavation and loading capabilities, making them versatile additions to rental fleets. With purchase prices ranging from $30,000-$80,000, they typically achieve ROI within 150-200 rental days at 45% utilization. Their multi-function capability ensures higher utilization rates than single-purpose equipment, enhancing overall profitability.

8. Lift (Various Types)

Average Monthly Search Volume: 5,050

Estimated Rental Price: $100-$400 per day

Profitability Analysis: The broad category of lifts encompasses various specialized equipment with strong profit potential. With acquisition costs ranging from $15,000-$70,000 depending on type, these machines typically achieve ROI within 120-180 rental days at 45% utilization. Their specialized applications mean customers have limited alternatives, ensuring steady demand and pricing power.

9. Crane

Average Monthly Search Volume: 2,500

Estimated Rental Price: $200-$1,000+ per day

Profitability Analysis: Cranes represent high-investment, high-return equipment with exceptional daily rates. With acquisition costs ranging from $50,000 to over $500,000, these machines require significant capital but command premium daily rates that can achieve ROI within 200-300 rental days at just 30-40% utilization. Operator requirements and specialized maintenance increase operational costs but also create barriers to entry, reducing competition.

10. Bulldozer

Average Monthly Search Volume: 2,090

Estimated Rental Price: $300-$1,000 per day

Profitability Analysis: Bulldozers command premium daily rates but require substantial initial investment ($50,000-$200,000). They typically achieve ROI within 200-300 rental days at 40% utilization. Their specialized nature and high operating costs mean fewer competitors in most markets, allowing for stronger pricing power and better profit margins despite higher maintenance expenses.

Complete List: Top 25 Most Profitable Construction Equipment Rentals

Here’s the complete breakdown of the 25 most popular construction equipment rentals based on search volume, along with estimated rental prices and profitability insights:

11. Ladder

Average Monthly Search Volume: 8,300

Estimated Rental Price: $20-$50 per day

Profitability Analysis: While ladders have lower daily rates, their minimal maintenance requirements and long service life make them surprisingly profitable. With purchase costs of $200-$800, extension ladders can achieve ROI within just 15-20 rental days. Their lightweight nature reduces transportation and storage costs, further enhancing profitability.

12. Engine Hoist

Average Monthly Search Volume: 5,500

Estimated Rental Price: $30-$40 per day

Profitability Analysis: Engine hoists offer excellent ROI potential with acquisition costs of $300-$1,000 and minimal maintenance requirements. They typically achieve ROI within 25-30 rental days and serve a specialized customer segment with few alternatives, ensuring consistent demand despite their niche application.

13. Lawn Mower

Average Monthly Search Volume: 4,700

Estimated Rental Price: $45-$225 per day

Profitability Analysis: Standard 22″ lawn mowers rent for approximately $45 per day, while riding lawn mowers command around $225 daily. Commercial-grade mowers provide strong seasonal profitability with purchase prices ranging from $1,000-$5,000. They typically achieve ROI within 50-70 rental days during the mowing season. While they require regular maintenance, their simple mechanical systems keep costs manageable.

14. Bucket Truck

Average Monthly Search Volume: 4,200

Estimated Rental Price: $650-$950 per day

Profitability Analysis: Bucket trucks represent high-investment, high-return equipment with daily rates that can recover the $60,000-$150,000 investment within 180-250 rental days at 40% utilization. Their specialized applications and limited availability ensure premium pricing power, while their essential role in telecommunications, electrical, and municipal work provides year-round demand.

15. Pallet Jack

Average Monthly Search Volume: 3,900

Estimated Rental Price: $40-$50 per day

Profitability Analysis: Pallet jacks offer exceptional ROI with minimal investment ($300-$800 for manual, $2,000-$5,000 for electric) and low maintenance requirements. Manual models typically achieve ROI within 15-20 rental days, while electric versions require 40-60 days but command higher rates. Their essential warehouse function ensures steady demand with minimal seasonality.

16. Tile Saw

Average Monthly Search Volume: 2,900

Estimated Rental Price: $40-$100 per day

Profitability Analysis: Tile saws deliver strong ROI with acquisition costs of $500-$2,000 and relatively low maintenance requirements. They typically achieve ROI within 20-30 rental days and serve a specialized customer segment with limited alternatives. Their compact size minimizes storage costs, further enhancing overall profitability.

17. Skid Steer

Average Monthly Search Volume: 2,800

Estimated Rental Price: $200-$500 per day

Profitability Analysis: Skid steers combine versatility with strong daily rates, making them highly profitable additions to rental fleets. With purchase prices ranging from $20,000-$60,000, these machines typically achieve ROI within 100-150 rental days at 50% utilization. Their multi-function capability with various attachments ensures higher utilization rates than specialized equipment.

18. Generator

Average Monthly Search Volume: 2,600

Estimated Rental Price: $50-$500 per day (size dependent)

Profitability Analysis: Generators offer exceptional profit potential due to their essential nature across construction, events, and emergency applications. With acquisition costs ranging from $2,000-$30,000 depending on size, these machines typically achieve ROI within 40-120 rental days. Their relatively simple mechanical systems mean lower maintenance costs, enhancing long-term profitability.

19. Wood Chipper

Average Monthly Search Volume: 2,400

Estimated Rental Price: $325 per day

Profitability Analysis: A 12″ towable chipper typically rents for around $325 per day. Wood chippers deliver strong seasonal profitability with purchase prices ranging from $5,000-$20,000. They typically achieve ROI within 50-80 rental days during peak seasons. While they require regular blade maintenance, their specialized function means customers have few alternatives, ensuring consistent demand and pricing power.

20. Air Compressor

Average Monthly Search Volume: 2,200

Estimated Rental Price: $50-$200 per day
Profitability Analysis: Air compressors provide excellent ROI potential with acquisition costs of $1,000-$10,000 depending on size and type. They typically achieve ROI within 40-70 rental days and serve diverse applications across construction, manufacturing, and DIY projects, ensuring steady demand throughout the year.

21. Tamper

Average Monthly Search Volume: 2,100

Estimated Rental Price: $60-$150 per day

Profitability Analysis: Compaction tampers offer strong profit margins with purchase prices ranging from $1,500-$4,000. They typically achieve ROI within 30-50 rental days and require relatively low maintenance despite their heavy-duty application. Their essential role in construction ensures steady demand throughout the building season.

22. Post Hole Digger

Average Monthly Search Volume: 2,000

Estimated Rental Price: $60-$135 per day

Profitability Analysis: One-man post hole diggers typically rent for $60 per day, while hydraulic models command $135 daily. Power post hole diggers deliver excellent ROI with acquisition costs of $1,000-$3,000 and minimal maintenance requirements. They typically achieve ROI within 20-40 rental days and serve a specialized customer segment with limited alternatives.

23. Concrete Saw

Average Monthly Search Volume: 1,800

Estimated Rental Price: $75-$200 per day

Profitability Analysis: Concrete saws command strong daily rates with purchase prices ranging from $1,000-$5,000. They typically achieve ROI within 25-40 rental days despite higher maintenance costs due to blade wear. Their specialized application ensures steady demand from contractors with limited alternatives, allowing for premium pricing and strong profit margins.

24. Plate Compactor

Average Monthly Search Volume: 1,700

Estimated Rental Price: $70-$150 per day

Profitability Analysis: Plate compactors offer excellent profit potential with acquisition costs of $1,500-$4,000. They typically achieve ROI within 30-45 rental days and require minimal maintenance despite their heavy-duty application. Their essential role in construction and relatively simple mechanical systems make them consistently profitable additions to rental fleets.

25. Aerator

Average Monthly Search Volume: 1,600

Estimated Rental Price: $85 per day

Profitability Analysis: Lawn aerators typically rent for around $85 per day, with towable models available for about $60 daily. Lawn aerators provide strong seasonal profitability with purchase prices ranging from $1,000-$3,000. They typically achieve ROI within 25-40 rental days during peak seasons (spring and fall). Their specialized function and simple mechanical design mean lower maintenance costs and fewer competitive alternatives, ensuring consistent profit margins.

Tracking Your Most Rented Equipment for Smarter Fleet Investments

Understanding which equipment delivers the highest returns is crucial for strategic inventory planning and capital allocation. However, many rental businesses struggle with limited visibility into their fleet performance.

Why Equipment Tracking Matters for Profitability

Most rental businesses face common challenges that limit their ability to maximize profits:

  1. Limited visibility into utilization rates: Without proper tracking, you can’t identify which equipment sits idle versus which items have waiting lists
  2. Difficulty identifying true profitability: Rental rates alone don’t tell the full story—maintenance costs, downtime, and operational expenses significantly impact overall returns
  3. Reactive purchasing decisions: Without data, many owners make inventory decisions based on gut feeling rather than actual performance metrics
  4. Missed revenue opportunities: Not recognizing which equipment could command premium rates during peak seasons

How Quipli Transforms Equipment Tracking

Rental Software Inventory Calendar

Quipli’s rental management software provides comprehensive equipment tracking capabilities that empower you to make data-driven decisions about your fleet:

  • Real-time utilization tracking: See exactly how frequently each piece of equipment is rented, including seasonal patterns and demand trends
  • Maintenance cost analysis: Track all maintenance expenses per unit to calculate true profitability beyond just rental revenue
  • Dynamic pricing opportunities: Identify equipment with waitlists or seasonal demand spikes where you could implement premium pricing
  • ROI calculation: Automatically calculate return on investment for each equipment type, helping prioritize future purchases
  • Customer preference insights: Discover which equipment types are most requested by your most valuable renters
  • Multi-location inventory optimization: For businesses with multiple locations, see where equipment performs best to optimize distribution

Making Data-Driven Fleet Decisions

With proper tracking in place, rental businesses can transform their approach to fleet management:

  1. Implement strategic purchasing: Prioritize capital expenditures based on actual utilization data and profitability metrics
  2. Optimize rental rates: Adjust pricing based on demand patterns, setting higher rates for equipment with consistently high utilization
  3. Identify underperformers: Quickly spot equipment with poor ROI that might need maintenance improvement or replacement
  4. Forecast seasonal needs: Plan for seasonal demand fluctuations with precisely timed acquisitions and targeted marketing
  5. Maximize fleet distribution: For multi-location businesses, ensure equipment is positioned where it generates maximum revenue

By implementing comprehensive equipment tracking through Quipli’s unified platform, rental businesses gain the insights needed to transform their fleet from a collection of assets into a strategically optimized revenue-generating machine.

A Rental Platform for All Types of Equipment

Whether you specialize in heavy equipment or general tools, maximizing profitability requires robust management systems that optimize every aspect of your rental operation.

Quipli provides an all-in-one solution that combines innovative inventory management and reservation system, equipment rental website template, POS system, and built-in reporting to make running your rental business seamless and profitable.

With Quipli’s unified platform, you can:

  • Manage inventory across multiple locations
  • Create an online presence that generates rentals 24/7
  • Track equipment utilization and profitability
  • Optimize maintenance schedules to maximize availability
  • Implement data-driven pricing strategies
  • Streamline customer management and communications

Ready to transform your equipment rental business with technology that drives profitability? Learn more about Quipli’s Equipment Rental Software.

How to Communicate and Invoice a Customer for Broken Equipment

Every now and again, a customer will end up damaging your equipment. While most renters will care for it and use it properly, customer-incurred damage is something that can and will happen.

In some cases, damage might occur in a way where the customer isn’t really at fault. But in other cases, the damage is clearly due to a mistake on the customer’s part, and they can reasonably be said to be at fault for it.

It’s important for rental companies to prepare for this contingency, and to have processes and policies in place to bill the customer fairly for the damage they caused, so that you won’t have to eat the entire repair or replacement cost.

Tips for planning ahead for cases of customer-incurred equipment damage

No matter what type of business you run, there’s always a risk of customer-incurred equipment damage. From conducting regular inspections to having the right insurance coverage, these tips will help you be ready for any unexpected situations that may arise.

Create and implement a clear, explicit damage waiver

The specifics of damage waivers can vary among different rental companies, but the core intent is the same. You’ll want a legally airtight document, which customers need to sign when they rent from you, that makes it clear and explicit what kinds of damages the customer is responsible for, and how you will go about invoicing and collecting for those damages if they occur. 

This is something where it’s best to consult with a contract attorney. By signing it, the customer is agreeing to pay to cover damage to your equipment for which they are at fault (with what constitutes “at fault” delineated in the waiver). Having a well-drafted damage waiver in place not only protects your business but also sets clear expectations for customers, reducing the likelihood of disputes.

Consider implementing a security deposit

Up-front security deposits are another way to help protect your business financially from potential repair costs. A security deposit is generally returned to the customer at the end of the rental period, but withheld in the case of damage. 

This approach serves as an incentive for customers to handle the rented equipment carefully and responsibly, as they are aware that they will forfeit their deposit if any damage occurs during the rental period. Security deposits can also help cover the cost of repairs or replacements, minimizing the financial impact on your business.

Timely communication is absolutely essential

The COVID-19 pandemic brought serious issues concerning the availability of replacement parts for heavy equipment. During that time, a lot of rental companies had machines that were hard down but unable to be repaired. Even now, there are still some lingering supply chain issues ongoing.

Planning ahead and keeping replacement parts available ahead of time can help you ensure timely repairs on hard down machines, to get them out on rent and generating revenue faster without having to wait on parts – multi-month wait times for a critical machinery part could mean a lot of lost revenue on that piece of equipment.

To avoid this situation, establish a relationship with reliable suppliers and manufacturers. Maintain an inventory of commonly needed replacement parts, such as filters, belts, hoses, and electrical components. This proactive approach will help minimize downtime and ensure that your equipment remains in top condition.

Implement a well-defined damage waiver policy for customers

If a piece of equipment is returned with significant damage – for which the customer is clearly at fault – it’s important to discuss it with them immediately. Machines should be undergoing inspection no later than 24 hours of being returned by a renter. However, the best inspection strategy is to inspect with the customer still onsite so that your staff can communicate in person any damage that was created. Offer to have a quote ready on the repair cost for them within 48 hours, 72 at most.

What you don’t want to do is wait days – or even a week or longer – to inform the customer about the damage. Prompt communication helps maintain transparency and trust between you and the customer, and it also prevents any misunderstandings or miscommunications that may arise from delayed notifications.

Document everything with pictures

Photographic evidence is a key way of establishing and proving that damage to a piece of equipment was incurred by a customer. Quipli’s software allows you to store and upload these images for future reference if needed. Be sure to take a series of clear, high-quality photos both directly before, and directly after, each rental period.
That way, if you need to invoice a customer for damage and they try to dispute it, you have solid proof of the damage in question. Customers also often back down from disputing an invoice for damages if you’re able to show them that you have that kind of proof – preventing legal headaches.

How to invoice a customer for damage to your equipment

A customer has returned a unit of equipment with severe damage, incurred by that customer’s own mistake or negligence. What happens now?

Take photos immediately of the damage, to compare against the “before” photos.

Before you create a work order and send the machinery in for repairs, make sure that the nature and extent of the damage is fully documented photographically. This step is crucial in establishing a clear and accurate record of the equipment’s condition, which will help you justify the repair costs and make it easier to resolve any potential disputes with the customer.

Confirm which customer was the last to rent the damaged equipment

With Quipli’s software, when you create a work order for damaged or hard down equipment, you can easily click through to view the last invoice number associated with its most recent rental period. This allows you to quickly identify the responsible party and begin the process of invoicing them for the damage.

Determine a fair amount to bill the customer to cover the repair cost.

The terms and conditions associated with this should be clearly and explicitly delineated in a damage waiver that all rental customers will sign when doing business with you. Ideally, you’ll want to charge such that the full cost of the repairs are covered, so you’re not paying out of pocket and losing money due to the customer’s mistakes. 

There are a number of ways you can go about determining amounts – some companies, for example, will specify something like “3-5x the total rental cost” as the damage penalty. It’s important to be fair and transparent with customers about these charges, as this will help maintain goodwill and minimize disputes.

Communicate to the customer that they are at fault for damage, and that you will need to bill them for the cost of repairs.

Centralized, clear communication is important. It’s a good idea to make sure that the relevant communications are all in writing – e.g., via email that you can save and back up – in case of a legal dispute in which those materials might be needed. 

Provide the customer with a signed copy of your binding contract specifying that they will be liable for damages, as well as copies of the photos you took of the damage. This kind of evidence can help prevent pushback from the customer, as it demonstrates the legitimacy of your claims.

The right software can help you streamline your invoicing process for customer equipment damage

You can do this using Quipli’s billing and invoicing software tools, which also integrate with Quickbooks Online. Make sure to itemize the repair costs and include any relevant documentation, such as photographs and the signed damage waiver, to support the charges. This will help the customer understand the rationale behind the invoice and reduce the likelihood of disputes or non-payment.

Properly handling equipment damage and effectively invoicing customers for repairs is a critical aspect of running a successful rental business. By implementing clear policies, maintaining open communication, and using tools like Quipli to document and manage the invoicing process, you can protect your business from financial loss and maintain positive relationships with your customers.

Conctact us today to learn about Quipli’s billing and invoicing features, as well as service/repair features to streamline your operations and ensure a smooth, professional experience for both you and your customers.


Contact Us Today to Learn About Quipli’s Service & Repair Features

Don’t Get Left in the Dust with Excel: 6 Reasons to Invest in a Rental Inventory Management Solution

Do you find yourself spending way too much time in the weeds with complicated excel sheets trying to manage your business? That time could be better utilized elsewhere so you can focus on what matters most: the customer experience and growing your business.

It’s time to move away from Excel and Google Sheets and invest in rental inventory management solutions.

Should I Use Excel for Inventory Management?

Many business owners who are just starting out use Excel or other spreadsheet programs like Google Sheets for various business management tasks, including:

  • Budgeting
  • Client invoicing
  • Inventory tracking
  • Time tracking

These tools are useful because they’re typically free, which makes them more accessible to new business owners with minimal budgets. But as your business grows, juggling several different Excel sheets becomes more cumbersome and less convenient.

This is especially true considering spreadsheet software like Excel and Google Sheets come with a bit of a learning curve, not to mention all the manual tweaking and customization required to make them work for your business.

At some point, Excel sheets simply don’t cut it when you need to manage constantly fluctuating items like inventory and financial statements.

When you reach this point in your business journey, it’s time to look into dedicated solutions for business management software to find a platform that meets the specific needs of your business: in this case, equipment rental.

6 Reasons to Invest in Rental Inventory Management Software

If you’re searching for a new business management software, you likely have your own reasons for wanting to invest in a new solution. Here are six common reasons business owners like you choose to invest in a comprehensive rental inventory management software solution.

1. Manually updating a series of spreadsheets takes a lot of time.

Imagine you’ve just rented out a piece of equipment.

First, you go into your inventory spreadsheet and mark it off. Then, you transition to your financials spreadsheet and put down the amount the customer paid (or agreed to pay).

Perhaps you have an accounts receivable spreadsheet, as well, where you have to make a note regarding any outstanding customer payments. Finally, you navigate to your CRM spreadsheet to note which customer rented what.

That’s already four different spreadsheets you’ve been forced to update manually.

With inventory management software, you can make all those changes in one place, and have them automatically communicated to relevant fields across the software.

2. Spreadsheets that need manual updates are prone to human error, raising your risk of potentially costly mistakes.

Not only does updating multiple spreadsheets take time, but it also leaves lots of room for human error since all of these changes are manual.

Excel isn’t exactly beginner-friendly. Unless every member of your staff knows what they’re doing and never makes mistakes, manual updates are bound to produce errors. And in many cases, mistakes in inventory or financial tracking can be quite costly.

While errors are a possibility anytime humans are involved in anything, the risk is decreased with inventory management software. That’s because the software does formulaic calculations behind the scenes, meaning you and your team can’t make mistakes.

3. Inventory management software provides a more streamlined, reliable way to keep your equipment in good condition.

Unless you have inventory management software, you’ll have to deal with another spreadsheet to track and make notes on the condition of your equipment. This includes any potential damage caused while the equipment was rented out.

With inventory management software, everything you need to know about a piece of equipment is displayed in one convenient place: whether it’s currently rented or not, who’s renting it, what condition it’s in, and when it’s due for repairs or maintenance.

4. Do you know where each piece of equipment in your inventory is at all times? This is a major challenge to handle manually with spreadsheets.

When tracking inventory through spreadsheets, you have to record what’s been rented, who rented it, what they’re using it for, how long they’ll have it, and when it’s due back, among other details. That’s a lot to keep track of.

With inventory management software, you can simply click on the piece of equipment you’re interested in and view its status, with no spreadsheet-hopping or back-and-forth required.

5. Inventory management solutions like Quipli create a seamless end-to-end customer experience that also integrates with your inventory management for accurate tracking.

Using inventory management solutions like Quipli, your customers will be able to locate your products and make reservations to rent the desired equipment. These reservations are communicated to the point of sale, which automatically updates rented equipment for accurate tracking.

This creates a quick, convenient, pain-free experience for your customer and makes life easier for you and your team.

6. Quipli is fine-tuned for gathering useful data — data you can turn into strategies to grow your rental business.

Quipli constantly gathers data behind the scenes while you perform your day-to-day operations. You can use this data at any time to make informed business decisions.

For example, you can pull data on what products are renting, which ones tend to sit longer than others, and which products may be due for replacement due to overuse, all without any tedious manual Excel reporting.

Learn How Equipped Saved 10 Hours a Month by Automating Inventory Management with Quipli


Read Our Case Study

When and Why Excel Falls Short for Managing Your Rental Business

Excel can be a useful tool at the beginning of your business journey. At a certain point, however, it no longer passes muster as an organizational aid.

Why Excel can be useful early in the game

Here are some of the reasons Excel is useful early on:

  • It’s free
  • It comes standard on many operating systems and devices
  • Most people have some experience with digital spreadsheets

 

These are all great attributes, but they’ll only serve you for so long.

Where Excel falls short every time

As great as Excel can be for tracking simple inventories and transactions, it falls short when it comes to certain aspects of inventory management. For example:

  • It can be a headache to make sure information is accessible to everyone who needs it
  • It requires manual input, increasing the margin for human error
  • It doesn’t update automatically
  • It doesn’t provide an at-a-glance overview

Remedying these issues is necessary to help you manage and scale your business.

When Is It Time to Switch to Software for Your Inventory Management?

You’ll know it’s time to switch to an intelligent software for your inventory management when:

  • You regularly have to audit the same errors in Excel tracking
  • You spend too much time on Excel and not enough time on other important areas of your business
  • You’re ready to level up and scale your rental business

If any of these circumstances apply to your business, it’s time to invest in inventory management software.

Upgrade to Quipli to Scale Your Rental Business

Inventory management doesn’t have to be difficult, at least not when you have access to tools like Quipli.

With Quipli, you get access to POS integrations, customer logins, website integrations, reservation management, inventory management, and critical data — all of which can help you grow your business.

Contact us to learn more or schedule a demo today.


Click here to learn more about quipli’s inventory management software

How Does Quipli’s Rental App Work?

Quipli’s equipment rental web app is a comprehensive solution for rental businesses. With website features and integrations, payment processing options, customer relationship features, and much more, Quipli has everything you need to manage your business and scale it to the next level.

How does it do all this? Here’s a detailed guide to Quipli’s many features and capabilities.

Create Your Online Rental Storefront

Quipli offers two options for setting up a customer-facing digital storefront: building your own through the platform itself or integrating Quipli into your current website.

Build Your Perfect Rental Website

With Quipli’s template, you can build a responsive, user-friendly rental website. Quipli is easy for beginners to learn and use, allowing business owners like you to build high-performing websites that meet the expectations of your customers

Quipli’s website builder is a sophisticated design tool tailored specifically to rental businesses. It allows you to list all of your products in a modern Ecommerce format so that users can easily select products based on what categories they are searching for. Here are just a few of its many useful features:

  • Cloud-based website builder allows you to work from anywhere rather than having software and programs downloaded onto your computer
  • No knowledge of coding required
  • The ability to either transfer in your own domain or purchase a new one through Quipli
  • Full editing capabilities for pages and product info
  • Product data imports that allow you to quickly upload all of your product information from a spreadsheet rather than manually creating each one
  • A fully-integrated checkout process that integrates with your POS system
    • Includes QR code functionality
    • Includes payment processing

Quipli’s website builder also allows you to establish a customer portal so repeat buyers can easily create their own accounts, and leverage cycle billing.

SEO, or search engine optimization, is important for ensuring that customers find your business. SEO determines where you rank on search engines and how often your site appears to consumers. The higher up you rank, the more customers in your area will see you. Given the prominence of Google search, getting this right or wrong can make or break your ability to win new business in your geography. Quipli has designed its platform for SEO out of the box (at a basic level). You can be rest assured that all of the basic elements of your SEO will be there without having to think about it. 

Last but certainly not least, Quipli’s website builder is responsive and 100% mobile-friendly. Most customers do their shopping on their phones, making this a critical feature.


Learn more about how to build your online storefront with quipli

Integrate Your Inventory Seamlessly with Quipli

If you already have a website for your business, Quipli can work for you too. You can seamlessly integrate Quipli into your existing site to take advantage of the streamlined checkout process, payment processing, and customer portal features.

Manage and Track Your Inventory

The Quipli equipment rental app lets you easily manage and track your rental inventory. Quipli comes with a robust inventory management system with many essential features, including:

  • Effortless renting
  • Inventory calendar
  • Location management
  • Product and category management
  • Product data importing
  • Reporting data

Quipli’s app is adaptable for either multi-location or single-location rental businesses. If you have many different types of products, Quipli allows you to create both rental categories and individual product items.

Another useful feature of Quipli’s app is the inventory calendar, which gives you a bird’s-eye view of the products you have available, out for rent, or due for return. This feature is essential for preventing double booking, which can result in awkward phone calls and costly corrections.

The inventory management software integrates fully with Quipli’s POS features so your customers can easily rent and pay for their desired equipment. The app even aggregates your data so you can disseminate info on your customers, product demand, and bestsellers.


learn more about managing your inventory with quipli

Manage Booking and Scheduling With Ease

Quipli’s equipment management app automatically pulls product availability information when booking and scheduling equipment rentals to prevent overbooking or double booking. The scheduling and booking features also integrate with Quipli’s POS system.

This feature also comes with an inventory calendar that helps you easily track what’s currently out and when certain equipment is due to be returned so you can plan future bookings. Gone are the days of analyzing a slew of spreadsheets before making a sale!

Make Double Booking a Thing of the Past

Double booking, or renting the same piece of equipment to two different customers within the same time frame, is a major issue that many rental companies run into when using manual systems for scheduling. With an integrated booking, scheduling and inventory management system, you won’t miss critical information like product availability when making a sale.

Additionally, when customers make rental reservations directly through your website, they won’t be able to book equipment that’s already rented. In other words, Quipli’s advanced inventory management capabilities make double booking impossible.


Learn About Quipli’s Booking & Scheduling Features

Unify Your Checkout Process with Quipli’s POS System

Quipli’s POS rental system enables omni-channel selling, which involves marketing your products online and engaging with customers directly. You can integrate your offline and online booking sales into a single, streamlined system to store all your financials and records in one place.

Quipli also integrates with Stripe, one of the leaders in digital payment processing. Many business owners and consumers use Stripe because of its secure, dependable functionality.

Quipli’s checkout process was designed to enhance the user experience, making it easy, intuitive, and hassle-free for customers to rent from you.

The customer profile functionality built into Quipli also makes it easy for repeat customers to store their information, such as payment info, addresses, and preferences. The customer profile has a dual function since it also serves as a data collection source.

What’s more, you can send digital invoices and receipts for paperless sales processes, allowing you to manage the accounts receivable aspect of your business while also reducing your organization’s ecological footprint.


find out more about quipli’s point of sale features

Keep Track of Financials with Quickbooks Integration

Quipli works with leading organizations to bring the best possible solutions to customers. For financial tracking, Quipli has developed an integration with Quickbooks, the global leader in accounting and bookkeeping software.

Quickbooks allows you to document and manage orders, invoicing, and taxes for stress-free financial tracking and reporting. With Quipli’s Quickbooks rental software integration, all of your systems will be integrated to allow full consistency between booking and your accounting.

Integrating Quickbooks

Integrating Quickbooks into Quipli is easy for the tech-savvy and tech-stunted alike. You can sync your customer and product information between the two platforms with a few clicks. Syncing Quickbooks and Quipli helps you and your team avoid potential mixups or mistakes.

Quickbooks is just one of the integration features Quipli offers. The platform can also integrate with the following:

  • Google Analytics
  • Google Maps
  • Stripe
  • Avalara

Quipli is the all-in-one solution you need to manage and scale your rental business.


Learn How Quipli’s Quickbooks Integration Works

Rent with (Cyber)Security

Data breaches grew by 68% from 2020 to 2021 and continue to grow each year.  Because Quipli is a cloud-based solution, as opposed to several competitors that rely on on-premise solutions, Quipli is a more flexible, more secure and more stable solution. Quipli has several servers in various state-of-the-art, highly secure facilities across the country which only helps to provide some of the best cybersecurity on the market.

Customer Service

At Quipli, we consider our customer service a core part of our app. We provide you with an onboarding team to get your business started off right. Quipli offers phone, email, chat and text support – if you need to contact us, we’re available. We also pride ourselves on our 5-minute response time that is available any time during our business hours.

The Best Equipment Rental App

With so many features, capabilities, and integrations, Quipli is without a doubt the best equipment rental app for rental businesses.

You can use Quipli on your desktop, laptop, or mobile device via the Quipli mobile app, making it possible to manage your business from your phone.

To make sure Quipli is right for you, schedule a demo with one of our expert representatives. They’ll give you an informative overview of the app and its features and answer any questions you may have about adapting Quipli to your needs.


Ready to grow? Book your free demo with QUipli


Unsure about the Options? Read our Software Comparison Guide

Construction Equipment Prices in 2022: How Much Does Equipment Cost?

The pandemic pushed prices of just about everything sky high. If you’re in construction, you watched as 2 x 4 prices went from about $2 to $6 or more. Equipment prices rose similarly. Thankfully prices are coming back down, though they aren’t quite down to pre-pandemic levels. This begs the question: if you’re in the market to buy, what kind of construction equipment prices can you expect?

The Most Popular Types of Construction Equipment

Here are the types of construction equipment we’ll be looking at:

  • Excavators
  • Backhoes
  • Bulldozers
  • Skid steer loaders
  • Wheel loaders
  • Concrete mixer trucks
  • Motor graders
  • Forklifts
  • Augurs
  • Sod Cutters
  • Floor sanders
  • Log splitters
  • Paint sprayers
  • Cranes
  • Bucket trucks

Remember that you may find outliers that are cheaper or more expensive than what we list here. The price ranges offered are meant to give you a reasonable expectation so you can budget accordingly. Learn about the most expensive construction equipment here. Note that maintenance costs can be high. 

How much does construction equipment cost? Let’s get into it.

Excavators

Expect to spend between $100,000 and $500,000. Heavy machinery prices vary mostly based on the size and capability of the machine. For a large name-brand excavator with massive digging power, $500,000 is not out of the question.  

Backhoes

You’ll notice a wide price range, with small budget models at around $15,000 and heavier duty brand name backhoes inching close to the $100,000 mark. You may want to stick to brands that have ready parts availability and a wide network of support.

Bulldozers

A 40-hp dozer could be as little as $30,000, while a 400-hp model could be as high as $200,000. Most bulldozers are around 130 hp and cost between $75,000 and $175,000, depending on brand and features.

Skid Steer Loaders

The ubiquitous Bobcat might be the most familiar skid steer loader, and you may have even heard someone call one a Bobcat despite it being from a different company. 

If you want a new skid steer loader, expect to pay $15,000 to $50,000 for the name brand with more power and features. Capacity also plays a large role in cost, with a 1,350-pound capacity loader costing near the low side of the price range, a 1,600-pound capacity loader in the middle, and a 2,200-pound loader occupying the top end.

Loader attachments can add up, too. Want to add a bucket? There’s a grand. Forklift forks? About $3,000. Want hydraulic actuated tools like hammers or backhoes? They can cost as much as the skid steer loader itself. 

Wheel Loaders

When discussing wheel loader prices, it’s important to remember that there’s a huge diversity of size and capability. These equipment pieces can come with around 100 hp and cost as little as $40,000. A 200-hp model will run over $100,000. 350  hp will cost up to 500,000. A 500-hp model will be as high as $1,000,000. The average price range for a wheel loader sized for most construction companies is between $100,000 and $200,000.

Concrete Mixer Trucks

Concrete is exceptionally heavy, and the mixer trucks that carry it are also. Your concrete mixer truck might weigh between 25,000 and 30,000 pounds. The size and weight of the truck directly impact how much concrete mix you can transport.

Expect to pay around $100,000 to $150,000 for a new model. Concrete mixing trucks might seem like a big investment, but they usually make up for it in profit for the owner.

Motor Graders

When it’s time to pave a road, parking lot, or any area of land that needs to be billiard table smooth, a motor grader is essential. For smaller, 130 hp to 180 hp graders, expect to pay between $200,000 and $300,000. Larger companies with big contracts for highways might need 250 hp or more, which will mean they’ll be spending $400,000 to $500,000. If you can get away with a compact grader with less than 100 hp, you could spend $100,000 and get a quality machine. 

Forklifts

If you want internal combustion, expect to pay $20,000 to $50,000. For an electric forklift, the cost is about the same, but you’ll need to spend about $2,500 to $5,000 for a battery and charger. More capacity equals more cost, so determine how much your forks will need to lift before you buy. Accidents happen, too, so don’t forget to ask about warranties and protection plans.

Sod Cutters

You could spend as little as $35 for a handheld electric sod cutter or as much as $1,200 for a gas-powered version with wheels. If your company is constantly landscaping, you will probably be best served by a larger gas-powered model that can do the job in a fraction of the time.

Floor Sanders

Making hardwood shine is a floor sander’s job. That shine comes at a cost, though, because floor sanders can cost $1,500, $2,500, and more.

Log Splitters

An ax can only take you so far. The average cost of a gas-powered log splitter is $1,000. There are cheaper manual versions for a few hundred dollars, but those work best if you don’t have a lot of logs to split. The high end of the range is about $7,500.

Paint Sprayers

Paint sprayers make the job of painting faster, more consistent, and give professional results. It’s worth spending between $50 and $300. Lower-priced models may be battery or plug powered, while the finer models will run off compressed air.

Cranes

Here’s another piece of equipment with a massive variety of sizes. A truck-mounted crane, low-end all-terrain crane, or rough terrain crane might cost about $100,000. Size increases bring price increases, and the largest examples can exceed $1,000,000. Crawler cranes are in a league of their own and can cost between $2,000,000 and $5,000,000. That’s the cost of heavy equipment.

Bucket Trucks

For sign maintenance, line service, and landscaping, a good bucket truck is a must-have. Low-end light-duty examples might be only $37,000, while higher-quality light-duty trucks could run as much as $140,000. The size, sturdiness, and features depend on the type of work you do.

Of Course, You Can Always Rent Thanks to Quipli

Discover additional construction equipment rental business ideas to improve revenue or take a look ahead at the construction equipment rental market with Quipli. Quipli is making equipment rental easier than ever.

Quipli is dramatically improving the process by making rentals as easy as an Amazon purchase. Our rental ecommerce platform embeds directly into existing websites which means its never been easier to create a business plan for a construction company or start your own generator rental business, and lets customers do the entire rental transaction online.

Ready to streamline your rental business operations with powerful, dedicated rental software? Contact us today to book your demo, and find out more about how Quipli can help you take your business to the next level!

Learn About Quipli’s Construction Equipment rental Software

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

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. 

Technology  

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 Improve Your Tool Business Profitability

Are construction equipment rentals a profitable business? Well, they certainly can be. The key is to make sure that you have an effective rental business plan in place for improving the profitability of your business. With these actionable steps, you can start your new company off right or revolutionize how you run your established business.

1. Study Your Equipment Rentals Target Market

Among the most important aspects of starting any business is defining who your target market is. You need to know who you’re going to be renting to so that you can get the right inventory and apply the right marketing strategies.

For some of the top equipment rentals, this mostly revolves around the scale of the equipment you’re renting out. Are you going to be renting excavators to contractors or tile saws to homeowners? Keeping your inventory focused on a specific niche can help make your business more profitable.

2. Know How to Price Your Tools to Be Profitable

Pricing is one of the most challenging tasks when it comes to establishing your tool rental business. For the most part, you’re going to have to make sure your prices are in line with your competitors’. If you’re charging more, your customers will likely go elsewhere.

However, make sure that the tools you invest in can be profitable at the rental rates you can charge. You can use our equipment rental calculator when developing your tool rental business plan PDF to get a more accurate view of your potential profitability.

3. Develop an Effective Tool Rental Business Website

Your tool rental business model should include having an effective website in place for your business. Many people today prefer to seek out information about companies online. Having a good website makes you easier to find, especially if you take the time to focus on improving your search engine rankings.

If you don’t have a website, you should get one now. Find a good website builder that has the eCommerce functionality you need. Quipli provides a website builder along with our integrated inventory and reservation software, making it easy for your customers to reserve rentals online.

4. Grow and Scale Your Tool Rental Business Through Digital Marketing

Digital marketing is among the most effective tools for how to grow an equipment rental business. While most rental companies can still benefit from conventional marketing like billboards, newspaper ads, and radio ads, digital marketing isn’t optional anymore. It’s a necessary part of your marketing strategy and can focus on areas like:

Search Engine Optimization (SEO)

Your website doesn’t just cater to customers but to search engines, as well. Using the right keywords and metadata can increase your rankings and get you more visitors.

Pay-Per-Click (PPC)

Along with organic growth, search engines and social media give you the option to pay for advertisements. Google, Facebook, and other platforms have a simple model where you pay based on how many users click on your ads.

Social Media 

Facebook, Instagram, YouTube, Twitter, and more are simple ways to get information about your business to your customers. Each one serves as one more potential entry point for customers to find your website.

Many strategies can be used to improve your digital marketing. It’s important to keep track of the analytics that advertising and social media platforms provide. That way, you can find out what works and what doesn’t when it comes to driving customers to your business.

5. Keep Investing in New or Used Equipment

You can make your tool rental business profitable by scaling up your inventory. With more equipment to offer, you’ll be making more money while some costs stay constant. That translates to more profit at the end of the year.

Both new and used equipment can be great ways to reinvest money into your business. Determining whether new or used is the best deal varies between specific types of equipment. Keep in mind when investing in new equipment that your existing equipment will need to be replaced at some point.

6. Maintain Quality Working Construction Tools

Like in any other business, the quality of the goods or services you provide for your customers is paramount. You need to ensure that every customer is receiving working, well-maintained equipment.

This will help drive more business based on your reputation. Keeping up with maintenance also makes your equipment last longer, reducing replacement equipment acquisition costs and improving margins.

7. Have Proper Tool Insurance and Liability Waivers

Not having the right insurance and liability waivers can cut into your tool rental profitability when you end up having to pay for damages that would have been otherwise covered. Damages can extend beyond the cost of replacing tools, so you need to make sure that your business is thoroughly protected.

Insurance is one area you want to have clearly defined in your tool rental business plan. The prices you’ll pay will vary depending on whether you’re renting full-scale construction equipment or smaller home-improvement or landscaping tools. Typical rates range from $500 to $1,500 annually per $1,000,000 in liability protection.

8. Focus on Customer Service and Repeat Business

Customer acquisition costs can be steep and are a major factor in answering the question, “Are tool rentals a profitable business?” You want to maximize the value from each customer, and that means doing everything you can to drive repeat business.

You can improve customer retention by:

  • Having clear communication to avoid disappointment
  • Offering customer-loyalty discounts for high-volume clients
  • Making sure your tools are provided in great condition

The value of repeat customers shouldn’t be underestimated, so you can always do a bit more to make sure they’re coming back.

9. Invest in Tool Rental Software

No matter what kind of business you run, you need the right tools for the job. When it comes to equipment rentals, you need the right software to manage your inventory and reservations. This lets you stay organized and provides you with clear and accurate data so you can understand how your business is doing.

Quipli has the rental business software you need to improve your profitability. With a fully integrated reservation and inventory system, you can rest easy knowing that your rentals are properly managed. You can contact Quipli today to book a demo and find out more.