The Cost of Buying Versus Hiring Tools

In many industries, the debate of whether to buy or hire tools can crop up quite often. Usually you may think the easiest option is to make a purchase; it seems the most logical solution especially if it is equipment you use often or something you believe will be worth the investment. Although these are good reasons for making a tool purchase, there are actually some further costs and concerns to think through which may sway you more towards hiring your equipment from now on. Sure, for equipment you use every day that is integral to your business, making a purchase may be the obvious choice but for specialist equipment, large equipment and tools you only use on an infrequent basis it may not be worth it.

Cost

The most obvious cost we look at first when making a purchase is the purchase price itself however this isn’t always the costliest aspect. Obviously, tool purchase can be costly but sometimes it is an investment you may think is worth making. Purchase cost is a straightforward cost that won’t change however there are other costs that may build up over time and may even equal a higher cost than the original price.

Over time some of the costs you may have for your tool purchases will come from battery replacement, repairs, chargers and other add-ons, back up tools for when others are in need of repair and tool calibration costs. In addition to these obvious costs there are some not so obvious costs which come from the time spent purchasing and maintaining tools.

Time

Before you make a big tool purchase, you will likely spend a large amount of time doing research, deciding on the right equipment and then purchasing it which is already time consuming. In addition to this you will then likely spend time on the health and safety details and training of the new equipment which can be timely and intricate work.

Time is then spent doing inventory and the more tools you have; the longer inventory takes. Employees will also have to spend time maintaining the tools; all that time will add up. You also have to consider the time of work lost when the equipment is in need of repair and cannot be used.

Storage

With larger tools and equipment, you will have bigger storage costs. You need a suitable location to store your tools where they will remain safe and secure. This could involve having to purchase or build a specific storage facility to house your larger equipment. You then have additional costs of maintaining your storage facility.

Tool Depreciation

Over time it is likely that the cost of your equipment will depreciate. It is important to consider this before making a large purchase. Some equipment will depreciate more than others, so it is important to consider how good an investment a piece of equipment is first. Ideally the tool won’t depreciate for at least 3-5 years; also make sure to consider how much the product would be worth at the end of its life.

Benefits of Hiring Tools

Whilst for some it may seem that hiring tools rather than buying them can be a lot of effort, in the long run it could save you much more time and money especially on equipment you don’t use every day. Hiring tools gives you the flexibility of using different specialist equipment as well as ensuring that the products are well maintained and in full working condition; you don’t have to worry about costly repairs or maintenance fees. You can hire and rehire as you please based on your needs without having to be concerned about how you will store larger equipment.

At HSS you can check the live stock availability for your equipment for same day collection or next day delivery based on your needs, taking all the hassle out of tool hire.


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Mandi Vaidya


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