Determining When to Buy Equipment
You need a fleet management plan. You need to decide when you are going to rent, buy, and sell specific equipment. You need to build this plan into your annual budget.

Do you own every piece of equipment you need to be competitive in your chosen markets? Do you own any equipment that isn't needed to serve those markets?

Sell the equipment you don't need and buy the equipment you do. Evaluate the fit of your fleet to your business strategy annually. The real reason you need a plan for your equipment is that owning the wrong equipment is a costly mistake to make.

You need to keep a close eye on your current equipment operating costs. Sometimes, it is cheaper to replace your equipment than it is to continue repairing it. Other times, you should rent equipment as you need it. At times, it may make sense to rent your equipment out to other contractors.

Buy new equipment if you need to:

• Enter into new markets or niches,
• Improve field productivity,
• Reduce your current equipment costs, and / or,
• Equip more field crews due to sales growth.

To make your investment in a piece of equipment pay off, you must be able to put it to work productively on profitable jobs. Look at your business opportunities and your niches. Then, look at your fleet. Take action.