Renting or Buying Tools? The Real Calculation for Entrepreneurs

When working in construction, every hour counts.

Renting a tool might seem economical if you only look at the advertised price. But for an entrepreneur, the true cost isn't limited to the rental rate.

You also need to consider:

• the time it takes to pick up the tool;

• the time it takes to return it;

• travel expenses;

• damage waiver fees;

• equipment availability;

• and most importantly, the fact that once the rental period ends, the tool still isn't yours.

At SOS Outils, several pieces of equipment in excellent condition are offered at prices that can make purchasing more cost-effective than renting after only a few uses.

Here are some examples.

BAUER 7" Grinder: Buy or Rent?

Purchase price at SOS Outils: $99.99

Rental elsewhere:

$36.00 per day

• 9.9% damage waiver fee

• 1 hour of estimated time at $100/hr to pick up and return the tool

Estimated cost per use: $139.56

Result:

The purchase price of $99.99 is already less expensive than a single estimated use at $139.56.

From the very first job, buying can therefore be more profitable.

And after the job, the grinder is still yours.

HERCULE 42 lb Breaker Hammer: Paid for in approximately 2 jobs

Purchase price at SOS Outils: $349.99

Rental elsewhere:

$72.00 per day

• 9.9% damage waiver fee

• 1 hour of estimated time at $100/hr

Estimated cost per use: $179.13

After two uses:

$179.13 × 2 = $358.26

You would have spent approximately $358.26 on rental and time, compared to $349.99 to buy your own breaker hammer.

In approximately 2 jobs, the tool is paid for.

Predator 5500/6500 W Generator: Approximately 3 jobs

Purchase price at SOS Outils: $509.99

Rental elsewhere:

$105.00 per day

• 9.9% damage waiver fee

• 1 hour of estimated time at $100/hr

Estimated cost per use: $215.40

After three uses:

$215.40 × 3 = $646.20

Purchase price: $509.99

Difference: approximately $136.

After three jobs, you could have spent more on rental than the price needed to own your own generator.

And when the fourth job comes, your generator is already in your truck, trailer, or workshop.

FORTRESS Jobsite Air Compressor: Approximately 7 jobs

Purchase price at SOS Outils: $999.99

Rental elsewhere:

$56.00 per day

• 9.9% damage waiver fee

• 1 hour of estimated time at $100/hr

Estimated cost per use: $161.54

After seven uses:

$161.54 × 7 = $1,130.78

Purchase price: $999.99

After approximately seven jobs, the estimated costs associated with rentals therefore exceed the purchase price of the compressor.

For an entrepreneur who regularly uses a compressor on their job sites, the difference can become significant over the course of the year.

PIERCE 30° Framing Nailer: Almost paid for from the first use

Purchase price at SOS Outils: $146.99

Rental elsewhere:

$40.00 per day

• 9.9% damage waiver fee

• 1 hour of estimated time at $100/hr

Estimated cost per use: $143.96

A single use therefore almost represents the full price of the nailer.

After two jobs, the difference becomes obvious.

Buying then allows you to keep the tool for your future contracts.

The most significant hidden cost: your time

For an entrepreneur, losing an hour isn't just losing an hour.

That hour could have been used to:

• advance a project;

• meet a client;

• prepare for an upcoming job;

• supervise a team;

• invoice for work;

• or simply finish the day earlier.

That's why we used a value of $100 for an hour of time in our examples.

The actual value will be different for each entrepreneur, but the principle remains the same.

A rental tool for $40 doesn't necessarily cost only $40.

If you have to leave your job site, travel, wait at the counter, load the equipment, and then travel again to return it, the true cost can be much higher.

Rental or purchase: when is renting still a good option?

Renting remains an excellent option in certain situations.

For example:

• you need highly specialized equipment for a single job;

• the equipment costs several thousands of dollars;

• you don't know if you'll use it again;

• you don't have the necessary space to transport or store it.

In these situations, renting can be perfectly logical.

But when a tool costs a few hundred dollars and you know you'll use it regularly, the calculation can quickly favor purchasing.

The true entrepreneur's calculation

Before renting a tool, simply ask yourself this question:

How many times will I use this equipment in the coming months?

If the answer is two, three, five, or ten times, take a few minutes to compare the total cost of renting with the purchase price.

Don't just compare:

$40 rental VS $300 purchase.

Instead, compare:

rental + fees + travel + lost time

VS

purchase price + tool that you own.

The conclusion can be completely different.

Stop renting your profit

Owning certain essential tools can also give you more flexibility.

No need to check availability.

No need to go pick up the equipment.

No need to plan its return.

The tool is available when your team needs it.

At SOS Outils, we offer a wide selection of tools and equipment in excellent condition, ready to work, for entrepreneurs, construction workers, and individuals.

Before your next rental, do the math.

A few jobs can sometimes be enough to fully pay for your equipment.

The calculations presented in this article are examples based on an estimated hourly rate of $100/hr for picking up and returning equipment. Rental examples also include a 9.9% damage waiver fee. Prices and rental conditions may vary.

SOS Outils

4630, boul. Industriel, Sherbrooke
sosoutils.com
819 563-2036