Equipment Rate Negotiations - Short and Long term Agreements

[foreng]

I am looking to hire a piece of equipment for upwards of 6 months and would like some guidance on a possible "volume discount" percentage? The equipment blue book rates reflect a day labour or short term application. If I was to rent the equipment and hire an operator I'm sure I would get a better rental rate over a longer term (5-10%). Why shouldn't this be the case when hiring an independent contractor, or are their other factors the contractor can not take advantage of that a rental company can?

 

[dicksewerrat]

Call a couple rental houses for their rate. Call the equip. manufacturer for their price on the machine. also look at leasing the machine from the manufacturer andbuy and sell back. Look at the differences for all these and also talk to your independent. you may be able to just pay for a percentage of amew machine for him and get a better deal.

 

[foreng]

Thanks dicksewerrat

I have also just received a copy of the American Blue Book
which has the ownership costs broken down in monthly, weekly, daily and hourly categories. The difference between a converted hourly and monthly cost can be as much as 25%. Unfortunately in Canada our Canadian blue book has only hourly rates. So I see the US has already dealt with this problem, maybe the Canadians should follow suit.