In today’s business world the term “Outsource” is commonly used. Most companies should outsource something that is outside of their core competencies. financially, this is generally the best alternative as you do not have to hire the people talented in those areas (with full benefits), to do the job. You only pay for what you use. In other words, outsourcing and rental are similar.
The following items should give a better understanding of what owning the heaters will really cost. With most of these items there will be a range of cost that needs to be considered. These are also things that can be done to lessen the cost (but increase your expenditures), such as having a fully-trained staff of service personnel and maintenance people.
Cost Associated Items
- Initial cost of the heater allocated over the life of the unit.
- If stored outside, the maintenance and lifetime will be affected.
- Clean and repaint (if necessary).
- Test unit and hose during off-season.
- Air quality check at site upon installation.
- Setup, delivery, and pickup.
- Cost of insurance for a gas fired product.
- Cost of inside storage during the off-season.
- Parts replacement.
- Repairs due to job site damage.
- Service calls 24 hours a day (need qualified service people).
- Test fire unit before delivery.
- Pre-job visit, load and fuel estimations (need a qualified person).
- Quality control check at the job site. Monitors voltage, carbon monoxide, meter size, temperature, relative humidity, etc.
- You still have most of the cost associated with the heaters even if you do not use them. With a rental, you only pay for what you use.
- The rental cost stops after 90 days of use, so if you can maximize your usage, you can generally have the free use of a heater towards the end of the rental season.
- Can someone justify a depreciation schedule on a product that is used only three months out of the year?
- Availability of all types and sizes of equipment to handle any type of project. If you use a unit that is too large for the project, you could have increases in products of combustion, building problems such as concrete dusting and an increased fuel consumption.
- Availability of all accessories such as various lengths of hose, ducts, flanges, fans, etc.
- When a heater is purchased it is done with “after tax dollars,” while a rental becomes the cost of the job and is paid with “pre-tax dollars.”
- After the first year of use, the problems experienced (Including the parts failures), double with each year of use without proper maintenance. They will fail during the highest usage periods and when you need them the most . Generally at night when the temperatures are the lowest or on the weekend when unattended.