When you’re running a business that relies on electricity in order to operate, every second you spend without power is money lost. So, it’s always wise to invest in a backup source of power, like a generator, because you never know when an outage might strike. Or if you’re on a site with no electricity, you’ve got to have your own source anyway. But is it more profitable to buy or rent a generator?
This is one of those decisions that have benefits for both sides, but it’s essential to weigh them up before choosing. So, let’s take a look at buying vs renting a commercial generator.
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Why Do You Need a Generator?
Let’s draw out a scenario quickly. You have a large mill that creates pine planks for roof trusses. Every day, your workforce cuts, cures, and works planks and beams for your clients. Now, what happens when the power goes off because of a recurring fault? Do your employees pull out hand tools? Now, we know there are alternatives in this industry, like handheld battery-operated power tools, but this will drastically slow down your production time.
This is only one of the many scenarios where having a generator would prove to be a very beneficial investment. But if you’ve only got an issue like this that occurs every now and again, it might not seem logical to fork out a ton of cash for your own generator. This is why it’s important to weigh up your needs. This will determine whether you should buy or rent a generator.
Renting a Commercial Generator
Many businesses that only need a generator for the short term rent them because it’s the more cost-effective option, and they don’t have to provide the maintenance or the transportation of the generator. This would normally be businesses that do site work, like running a construction site and renting the generator until their project is completed. There are many benefits to renting a generator, but there are also some disadvantages. Let’s take a look at them:
Advantages
Buying an industrial generator van is pretty expensive, especially if you’ll only need to use it once every now and then. This is where renting saves you money. By renting, you can have the benefits of using the generator without having to pay its full price. This is much cheaper, and you’ll only be paying when you need to use it
Most rentable generators are portable, and the rental service will generally deliver them to your given location, and they’ll set it up for you. This provides you with accessible electricity anywhere, and the set-up of the generator
As the renter, you’ll get the benefits of having a generator technician on call in case anything goes wrong with the generator they sent you. If they’re unable to fix the generator, they’ll provide a replacement to ensure that your needs are met
Finally, a rental generator is great for emergencies. Say a hurricane hits and destroys several electrical lines that will take days to repair. By renting a generator, you’ll be able to compensate for the lost time without power
Disadvantages
As amazing as renting a generator is, there is a wait between when you order the generator and when it arrives. During this time, your fridges could be defrosting, risking food being ruined, or your factory might not operate, losing you production time and money
While most renters may be flexible, you still don’t own the generator. Because of this, certain restrictions may come with it. This may not be an issue; however, if something happens to the generator as a result of your negligence, you’ll be liable to pay for it
Some rental companies place usage caps on their generators. They’ll stipulate how long you can use it and what limitations they place on it
Buying a Commercial Generator
Owning a generator is ideal, but it’s also not all sunshine and roses. For one, buying an industrial generator is very expensive. However, if making this investment will be beneficial in the long run, then it’s wise to do it. Here are the advantages and disadvantages of buying a generator:
Advantages
A large generator bought for a business becomes an asset. It adds to the functionality and productivity of your business and will most likely sell for a good price if you want to sell it later on
It saves you in the long run. If you struggle with power issues regularly and it interferes with your business’s productivity, making the initial investment to purchase a generator will actually save you money. Consider the value of work gone unpaid because of power cuts; you’ll be surprised by how fast having a generator pays off
There’s also no delay when it comes to using the generator. All you’d need to do is switch it on, which even then isn’t always needed. Some generators switch on automatically when the point drops
Disadvantages
Buying a generator generally costs quite a lot upfront, especially for the types of generators businesses need. Because of this, businesses need to raise the capital before investing in one
Rental generators are usually portable. This isn’t because they’re extremely light, but rental companies transport them for you. When you own your own generator, its transportation is completely in your hands. Most owners also fix their generators to one position when they install them
All the maintenance for your generator is your responsibility
Final Thoughts
So, to sum up, what we’ve discussed, considering your long-term needs, if the power in your area goes out often and has a massive impact on the operational side of your business, then getting a commercial generator is a wise investment.
Put simply, if you’re losing money because you don’t have a backup generator and having one will assist in generating that lost revenue, then go for it. But, if you rarely need a generator for your business and there are only one or two isolated incidents, then renting one would be the wiser move.
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