I am thinking of setting up a mini-digger and dumper hire business (in the east midlands). I realise I would be in competition with the major hire companies (HSS, Hewden etc.). Is there a place in the market for a small firm that delivers and collects all it machines as well as providing some basic instruction and friendly advice with every hire. What have been your experiences hiring mini-diggers, are you put of hiring them because of have to collect them from the hire company or is it just east to hire a operated mini-digger. Any comments or suggestions, most appreciated,
I've hired mini-diggers several times in the past (I'm in bedfordshire) from a company offering a similar service where they deliver & collect. If the price is right and people can find you easily (yellow pages, internet, local paper etc) then you should be able to find plenty of business.
Thanks for the reply Alan. Was thinking of charging =A365/day with =A320 delivery and collection fee (within 20 miles of base) or =A3120/weekend
+=A320 del&col and a week at =A3200 + =A320 del&col. The machines would all be new takeuchi diggers with 3 buckets and the option of hiring a concrete breaker as well. Are these rates competitive? Thanks,
+£20 del&col and a week at £200 + £20 del&col. The machines would all be new takeuchi diggers with 3 buckets and the option of hiring a concrete breaker as well. Are these rates competitive? Thanks,
Andy
That sounds cheaper that the rate I paid - which is a good thing! Because of the high rate I only hired when I really needed it and for the shortest possible time.
I hire in machines regularly, and I have my own bobcat. There is a break even point where buy-use-sell is cheeper than hire, this is what you will fight against for regular users.
On the excavator, I suggest you offer a driving lesson, maybe with the first hire. There are lots of silly mistakes like running the engine too slow. Also getting a flat "scrape" or a full bucket without knocking the stuff everywhere are not imediatly obvious things to do.
Dumper driving has a few points to make a short lesson usefull, like don't use the brakes use the engine, and don't forget it will drive & snap the handbrake if its on.
65 quid plus VAT & delivery is about the right price for a 2 tonne. 40 quid for a 3 tonne 4wd drive dumper, upto 80 for a 5 tonne swivel tip.
Places are now are also insisting on seeing insurance documents, or selling it as an extra. A guy I know who hires trailers says theft is his major issue, he now takes pictures / pastports or his new hireers.
a DIY day is 13 hours long this time of year, which means more wear than you are possibly considering.
Places also suppl fuel (red diesel), which they charge for.
Hiring with driver as an option is alos usefull. I pay 15 quid an hour all in for driver and 6 tonne machine, which does more work per pound note than me driving the 2 tonne machine.
You need to have some value add to make any real money, nobody with brains uses HSS / Hewden anyways - too much cash is needed.
And you will need some sort of insurance for some idiot blaming you that he killed his cat with your machine .....
In the market, yes, in your area it may already have been filled. We hire mini diggers and bobcats from time to time. The local firm that we hire from delivers them on site as you expect to do, provides training and fuel. There are a coupe of others in the area as well.
Since we are about to buy a Goldoni tractor, I'm going to spend the extra couple of thousand on buying a back hoe to fit the PTO. It's actually worth it for the amount of work I have planned in the near future.
There will however be some sort of market I'm sure, because we've hired them for years and have seen others do so. Also there's often a waiting list for hire of the mini diggers at our local place. What you need to do is check out the competition.
I noticed a trick exploited by some is if you send it back with less than a full tank, they will charge for fuel used at DERV prices, although they obviously use red fuel themselves.
Thanks Alan, I was thinking of charging £65/day, £125/weekend and £200/week +£25 for delivery and collection within 20 miles of base. Does this sound reasonable?They would be new or fairly new Takeuchi machines with 3 buckets and a concrete breaker available as well. Probably 2 x 1.5t diggers and a 0.75t digger. Any further comments and suggestions most appreciated. thanks, Andy
Cheers Rick, Yes have looked into insurance the hire association europe (hae) can provide this and the terms and conditions with the relevant disclaimer to cover for that cat and maybe the neighbours dog and garage. From my research theft is a problem. No ones deals with it becauce insurers keep paying out, most plant can be started with the same key. When the machines are out on hire they are at the risk of the hirer (hae do a insurance you can sell to hirers its 10% of the original hire cost) who signs as part of t&c's they have adequeate insurance. Yes HAE and many of the big hire companies insist on two forms of id (passport or photo driving licence and utility bills etc). I am intending on buying just one trailer so none of my machines would be available with trailer. 1. This reduces the theft risk, 2. Reduces transport damage, 3. Hassle of instructing hirer on correct loading/unloading and securing of load for highway... 4. For customers where space is limited a big advantage Would you see not having a trailer a disadvantage? If as part of my deal I provided full tank did not charge if returned not full tank of fuel (as I would be using red which is 30p/litre most tanks are only 10 litres anyway). And if there was no need to clean machine? Would del&col, instruction, fuel and no-need to cleaning differentiate me from competitors and give me that 'added value'? As always any thoughts and comments appreciated greatly. Thanks, Andy.
What I'd like from a hire company, I don't pretend this is more than me.
Decent website, with downloadable guides to all your equipment, or perhaps a DVD of all your stuff. (being able to download guide without waiting would be nice).
This would basically be a pan round the digger/... showing all the bits, followed by examples of what it can and can't do, followed by how to do what it can.
I don't mean a professionally shot video - just basic.
All before I hire it, so I can reasonably plan jobs, rather than just guessing from a catalog page.
Online ordering might be nice.
The ability to either book a week in advance, at a standard rate, or to say "I'd like a digger soon", and you notify me when you have one available, at a reduced rate.
I'd like the opportunity to get a small discount if I return it clean.
I've ripped the tracks off almost every one I have had on this dastardly clay, sometimes requiring call out.
I've had one that was so buggered its hydraulics would not hold pressure
- all for the sake of a simple new pipe needed.
I had one that half fell into a ditch at such an angle that the hydraulic pump sucked dry and wouldn't allow me to use the ram to lever it straight.
Fortunately we had aother one and were able to rope it and pull it upright.
The basic problem is that unskilled users smash em to bits, getting skilled.
You need rapid response with skilled maintenance peole to make a go of it: Having said that, if you have thats the way to go - pull old stuff at auction, and keep it going by knowing how to fix hydraulics and weld.
Like with hiring out motorcaravans, in the end you end up owning one.
I am hugely glad that people will allow someone who hasn't even passed a test to drive a 3 ton digger and a dump truck. Frankly they are mad. But thats their choice.
I think that a "price you see is the price you pay" philosophy is a good one. I really hate it when you retun something to the hire shop and they add on loads of other stuff.
Another thought..maybe you want to hire out a limited range of associated equipment?
If people have to go to another hire shop in order to hire a concrete mixer, say, they maybe they'll hire the digger there and not from you?
Perhaps also worth coming to an arrangement with a local skip hire service where you can offer a digger and a skip for one all-in price etc. sponix
Was intending on hire purchasing new machines over 3 years that come with 3 years warranty, therefore limiting repair costs to opearator abuse for which the hirer is responsible. What sort of deposits do you usually have to give? Does compulsory insurance put you off? It it 10% of hire price but covers you for everything with a reasonable excess. Buying old machines at auction I think will just mean high repair costs, unreliable machines, lots of callouts, unhappy customer. Would prefer to offer a new reliable machine and keep it that way, selling as soon as 3yr warranty period is up and buying another machine with 3 year warranty and so on... Surely the tracks came of because they were worn and incorrectly adjusted? Never had a problem before myself and I am not very symphathetic to machines! Cheers, Andy
an "AA" type service. would be great, and you could sell it to others as well. Its just taken 2 weeks to get a fitter out to my bobcat, now a 700 quid repair . The last thing you need is a bodge repair if something goes wrong
The delivery stuff is OK if your customers are neerby, or they don't have a car that can tow. When I had the 4x4 I would hire a smaller machine to I could tow it, and save the delivery charges.
If I was not responsible for the plant, I would take less care of it. As it is, once its "on hire" I park my car so the plant can't be taken without destrying the car, and I treat the machine with much more care than my own machine.
I think providing cans of diesel would be usefull, so people can take/buy enough cheep fuel to do the whole job.
Machine cleaingin is upto you, but they have to be clean when they get delivered, so you will need somewhere to clean them.
If you deliver, you also know where the thing is, and can check the job out for obvious dangers, and provide driving instruction, all "value add" stuff.
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