The Savings of Ownership
Some equipment comes with risk and maintenance. When that happens, it’s often best to rent it unless you have the infrastructure to support it. It’s all economies of scale. But when the equipment has nearly no maintenance and little to no risk, renting it becomes an expensive proposition. Usually you can pay for it in a year or rents. So what’s keeping you from taking advantage of a 29:1 ROI if it last for 30 years?
Retractable Crane Loading Platforms are an excellent example of this type of item and the returns that are available. If you rent these as a general contractor, you are customarily allowed a 15% mark up by developers. So if it’s $2000 a month to rent one, that’s an earnings of $3600 per year to re-rent it. That’s a paltry return. If you own the deck and rent it to yourself, the rent and the mark up can total $2300 a month. Do that times 4 decks and we start to make some money.
Stunning Returns to Support Your Core Business
Let’s look at that return over the long haul. If your annual profit is currently $3600 with a total cost of $27600, you can give up that $3600 in profit and buy a retractable deck instead. At the end of the first year, or really, one job, The deck is paid for. Next year, it’s profit. Without considering the mark up opportunity, or making money on mobilizations, you could see $24,000 back in your pocket. If the loading platform lasts 30 years, that’s an ROI of $695,000 before you consider inflation. On four decks you legitimately could see a return of 3 million dollars on a $100,000 expense. There is hardly a financial instrument in the world that does that. Account for inflation and the returns by 30 years have more than doubled. This means your annualized returns are looking to be $240,000 a year per deck on an investment of $100,000 from 30 years before. It’s a staggering return that again, leaves out mobilization and maintenance fees for things like paint which can be just rolled on.
The Large Capacities of Our Crane Loading Platforms
On top of this, our Crane Loading Platforms are the highest rated Retractables on the market. At the full extension, they are rated at 11,000 lbs. That’s 17’ of outboard reach and no derating going on. At the center of that deck, we are good for 11,000 lbs where most rentals drop to 5800 lbs. We have Panelized Crane Loading Platforms. We can deliver up to 13’-9” wide that will ship in a normal container. It will ship down the road on a standard truck. They take a little over an hour to assemble on site. For savings that can be quite large for long hauls orsimply impossible deep into cities. These are more expensive, but the space you have to land large MEP or Glazing/Wall Panels to load up a floor are stunning to see. It leaves room to be productive instead of inching through movements to make things fit.
Let’s Get That Order In
If it’s time that you stopped looking at the small returns of mark up and you want to see serious returns on serious gear to support your jobs, CraneGear and Eichinger are here to help. sales@cranegear.net. 253.213.5701 is my number. We’re here to help. These take about 6 weeks to produce. Choose your color to make it pop. I would put a lighted sign on them myself and let the world know who is doing the job so they can hire you for their next one.
