There’s a lot of money to be made in the construction business. But you probably already know that otherwise, you wouldn’t be entering into the world of contracting.
Despite the money that you can make as a contractor, you also have to spend a little just to get started. When you figure in the cost of tools and equipment, you’re looking at a fairly large expense when it comes to startup capital.
Thankfully, you can usually buy tools and equipment along the way as needed. But sometimes you might be strapped for cash and need to purchase necessary equipment in order to complete a job on time.
The good news is, you don’t always have to buy new equipment. In fact, much of the tools and equipment you’ll need can be found at a discounted price, or by other means as well. In this guide, we’ll explore a few ways to find cheaper equipment for your contracting business.
Construction equipment auctions tend to draw huge crowds. And this is because the value of the equipment usually far exceeds what you’ll end up paying at auction.
Believe it or not, auctions are actually one of the best places to buy construction equipment like excavators, bulldozers, backhoes, and front-end loaders. And this is because much of this equipment has been heavily used or refurbished.
Though you most likely won’t be able to find a brand new shiny piece of equipment at an auction, you might find what auction attendees refer to as the “cherries” of the bunch. And these are the best deals for your money because the equipment is usually newer than other items at auction.
It’s always good to note any equipment history before purchasing at auction, as much of this equipment needs to be fixed in some way.
One of the more cost-effective ways to get efficient equipment such as work trucks, trailers, and the like is by utilizing a rental service. You can even begin by renting commercial pickup trucks to use for your contracting business as well.
With equipment rentals, you simply pick up your equipment and drop it off when you’re finished. This takes the hassle out of performing routine maintenance or having to pay for costly vehicle repairs due to wear and tear that you’ll be responsible for.
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Even small equipment rentals can get you by far cheaper than if you were to purchase the equipment brand new. And you have to remember that some jobs are going to require certain equipment that you may rarely ever use.
In this case, rental equipment is highly cost-effective because you can simply return it when you’re finished.
If you’re looking for small, hand tools or even some larger equipment such as stationary cement mixers, augers, and the like, try taking a look at a few pawn shops around town.
Believe it or not, many pawn shops have a nice, wide selection of tools to choose from. And most pawn shops will test out the equipment to ensure that it works so that it can be sold for a fair price.
If you’re looking for hammers, nail guns, compressors, or even a set of screwdrivers, pawn shops will most likely have all of these tools on their shelves in some variety.
And while they might not be the prettiest, like at an auction, you might just be able to find some newer tools or equipment that will get you by long enough for you to establish your business and purchase the new equipment that you like.
When you’re first starting out in the construction business, every penny counts. And unless you’re coming out of the gate with a large amount of startup capital, you’ll need to hang on to every penny you have until your business takes off.
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Once you’ve established a customer base, and you’re getting more referrals, then you’ll be able to buy that shiny new excavator.