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If however, finances and company circumstances do not fit with a full purchase option or if there is a question mark over longevity of need or suitability to the workload of the equipment into the future, then perhaps leasing may be an option for larger equipment items. Or for shorter term work, or in the modern industry even longer term operations, hiring may be the thing.
If the need is particularly short term or limited to one particular project this may mean that hiring is the option best suited to the situation. Simply use it for the period required and give it back once that is completed.
If there is a question mark over whether an item of equipment is actually best suited to a particular job even though it may appear to be the right thing, hiring does as previously highlighted give the end-user time and the opportunity to try before the buy to just how well suited the item is.
This all also depends on the financial situation of the end-user company and its credit rating and other resources. As mentioned before the fact that the more costly financing requirement are usually not directly between equipment supplier and end-user but between end-user and third party finance company can mean that buying and leasing may be closed to companies with a poor credit rating. Check your position before running down this route and the finance rates can be high is you do not have a suitable past record.
What many people also fail to do however is utilise the fundamental expertise of the companies with which they deal. Is this because they do not want to appear ignorant of the latest technologies or is it that they do not want to seem to be old fashioned in their approach? Or are we still in the era of ‘I have always done it this way and I do not care what advances have been made I am quite happy as I am thank you very much’. Or is it simple arrogance that says I know better than anyone what my company needs!
Manufacturers, rental companies and lease organisers do understand what it is they are dealing with (they are making this stuff to fit almost any circumstance you can think up and will develop new equipment where there is none if they can) and can ascertain how well what they offer may fit the project or process that you the end-user are looking to achieve. They all have extensive experience in a range of situations and applications, and can advise whether buying, equipment rental or leasing will be the best fit for individual company circumstances. In many instances they can offer businesses access to skilled engineers, product experts and service technicians who know exactly what is needed to keep operations running once equipment is in place and working. For most options there will be a team of experts will take into account the operating conditions and applications of its equipment to ensure the most appropriate and efficient equipment for the job as well as offering advice on the latest innovations, improvements and solutions. Remember these companies want you to come back to them in the future for more equipment, so it is really not in their interest to sell, you, hire you or lease you a ‘dud’ for the sake of profit, as this is a very quick way of going out of business. We are all working an industry that keeps few secrets no matter how hard we try to hide our ‘failures’. So if a piece of equipment is poorly provided or supported it soon gets around and reputations can be diminished to say the least.
A particular example of how using such expertise can be put into practice is seen in the following which describes a procurement process undertaken by Andy Guest Jetters for a client.
When it comes to purchasing new jetting equipment, cost, performance, efficiency, safety installation, vehicle fit out and ongoing maintenance are all considerations in a process that can prove extremely time consuming. By
choosing a single-source solution, many contractors have discovered a hassle free and cost-effective way to satisfy all their jetting vehicle requirements.
Andy Guest Jetters Sales Manager Jon Woods commented they have seen a marked increase in the number of customers looking for ‘complete’ solutions saying: “We have been providing turnkey jetting solutions for several years and more recently have been helping customers finance the complete package. That is everything, including arranging vehicle finance, jetter supply and installation, vehicle customisations and after- sales services. We find that this offers customers an affordable way to use the latest kit, whilst ensuring the efficiency and reliability of their equipment.”
Understanding customer requirements is paramount in the process, and Jon said the team at Andy Guest takes the time to tailor solutions that meet specific needs. A good example of this is a recent project for DASA, a leading provider of drainage and leakage evaluation solutions to the insurance industry and its partners.
The company was looking to replace some of its van-pack fleet with smaller vans, whilst still having the space to carry all the equipment necessary to undertake evaluation and remedial work. Steve Lownds, Off-Main Fulfilment Manager at DASA explained: “We wanted a well organised solution that would work in smaller Ford Custom vehicles and allow us to carry all the equipment and tools we need to undertake jobs in a single visit, without the vehicle being jam-packed.”
To achieve this, customisation of the vehicles included bulkhead installations, waterproofed rear sections and checker-plate and ply-lined front sections, along with internal shelving and a locking cabinet for securing valuable equipment such as the leak detection consoles and CCTV camera equipment. LED lighting was also installed, along with wash basins in the rear section of the vehicles.
Jetter size and weight played a key part in the solution, with the new V-Pack 1 Series providing a much smaller, lighter unit that could be fitted further back in the van to distribute weight. Reducing payload also improves fuel efficiency and Steve said the company has been quite surprised at how fuel efficient the new Ford Custom is, even when fully loaded.
The DASA field engineers have also been impressed with the new jetting equipment and van conversion. “The new jetter is really straightforward to use and provides plenty of
follow us on twitter @draintrader | June 2018 | drain TRADER 9
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