# How to charge for equipment



## katoman (Apr 26, 2009)

My next job (about a 4 month project) will require that I purchase about $3000 in scaffold equipment. 

To rent it is about $4500, so I'm going to buy it. What is the best way to recoup some of this from the client. (it's a time and materials job)

Can't charge him for all of it, as then he can say "well it's mine then"

Input needed.


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## Leo G (May 12, 2005)

rent it, charge it as material and put a small profit on it. Then you won't have to store it when you are don with the job.


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## Double-A (Jul 3, 2006)

I would give him the option of supplying the scaffolding or renting it.

If he wants to rent it, work out who will rent it and how the client will pay for it. If he wants to pay through you, charge him for the privilege. 

I might offer to supply as a rental item at the same rate the equipment rental companies are charging. If they want to keep the equipment after the rental because they did their homework, just tell them the truth. It don't work that way. If they are renting from you, it's not a rent-to-own offer. Also, once they decide, get it in writing. Don't let them change their mind and stick you with 3k worth of new scaffolding that you can't get your money out of.


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## rselectric1 (Sep 20, 2009)

Leo G said:


> rent it, charge it as material and put a small profit on it. Then you won't have to store it when you are don with the job.


:thumbsup:

Charging the rental rate plus your OH/MU rate is fair. None of his business who owns the equipment. If you decide to buy it, that's on you.


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## Leo G (May 12, 2005)

Or buy it and rent it to him. Just make sure you are allowed by your state to do a rental.


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## katoman (Apr 26, 2009)

This is a really good client of mine, so I want to be fair. Also, I want the equipment, I can use it in the future.

I'm thinking to show him that to rent is $4500, but I will supply it for your job for $2000.

What do you think?


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## dakzaag (Jan 6, 2009)

I would charge the cost to rent and then buy it. If you have a way to store it and it will be useful down the road, then keep it. If it is a one and done, after the job is complete then sell it on craigslist or whatever and hold the money. Leave that little bonus in the job to cover some other unexpected expense or problem and if it all works out well, give the guy the difference back and he will be one of your best references ever.:thumbup:

I am sure you had to give a rough estimate on cost so either way the scaffold is an expense from the job. Doesn't matter to the customer where it came from or where it is going. 

You should be able to rent it a little more competitively than that, maybe you should sharpen your negotiating skills.


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## thom (Nov 3, 2006)

katoman said:


> This is a really good client of mine, so I want to be fair. Also, I want the equipment, I can use it in the future.
> 
> I'm thinking to show him that to rent is $4500, but I will supply it for your job for $2000.
> 
> What do you think?



I think you're nuts. The fair rental rate is what it is. Fair is a two way street and in this case, that means the client pays the regular rental rate.


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## rselectric1 (Sep 20, 2009)

katoman said:


> This is a really good client of mine, so I want to be fair. Also, I want the equipment, I can use it in the future.
> 
> I'm thinking to show him that to rent is $4500, but I will supply it for your job for $2000.
> 
> What do you think?


That's more than fair-however keep in mind that in *his* mind, he might still feel that he owns part of it. Depends on the HO I guess.


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## katoman (Apr 26, 2009)

Being a cost plus job, the client sees all invoices. So if I don't rent it but buy it, I can't show the rental cost.

My gut is telling me to charge him the 2 grand, but want to get others' input, as I'm admitadly not the sharpest business man.


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## rselectric1 (Sep 20, 2009)

Cost plus does change the situation a little. I don't think you made that clear before.


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## katoman (Apr 26, 2009)

thom said:


> I think you're nuts. The fair rental rate is what it is. Fair is a two way street and in this case, that means the client pays the regular rental rate.


I hear you, but then the client can say "it's mine"


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## Leo G (May 12, 2005)

It's a rental. Don't matter who pays for it, the rental place still owns it because "It's a rental"

If you purchase it and charge it to hem then it is his.


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## katoman (Apr 26, 2009)

Ok, here's my take on it. I get the equipment for $1000, I save $2000.

The client saves $2500.

In my mind this seems like a fair deal. If I was the client and got charged the 4500, I would keep it and sell it.

So he can see the contractor is putting out some money, but saving him some too. Makes for good client relations, no?


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## rselectric1 (Sep 20, 2009)

katoman said:


> Ok, here's my take on it. I get the equipment for $1000, I save $2000.
> 
> The client saves $2500.
> 
> ...


I'm not a lawyer, but since you are on cost plus, I think you would need a separate agreement with the ho about this.

That's what I would want putting myself in the position of you or the ho.

Scratching my head on this one. Kind of an enigma.


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## thom (Nov 3, 2006)

With the exception of the normal small tools, we all charge for equipment. In this case, I would just have the owner check the rental rate, then tell him you will supply the equipment at that rate. He will know that you are buying new scaffolding and supplying it. There is no reason to tell the customer what the equipment costs to purchase, certainly the rental house doesn't do that.


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## katoman (Apr 26, 2009)

Thanks rs, no lawyer needed here, whatever I tell this client, he will agree to if he feels its fair.

I've done lots of work for him, and as long as I'm fair with him, he'll spend it.

Wish I had 5 more like him. :thumbup:


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## RCT (Jan 5, 2010)

Depending on the kind of person the client is I would think he'd be fine with paying the $3,000 for you to buy the scaffolding if he knows the alternative is him paying $4,500 to rent it. He might see having to deal with the storage and the hauling of the scaffolding as a huge pain in the @ss. He might think you're doing him a favor by buying it yourself. I guess ultimately it's your client and you'll have to do what you think will keep things cool between you. One thing I have found though is that doing a job and being 100% straight with people seldom backfires.


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## jeffatsquan (Mar 16, 2009)

Bump your rate up $5.00 per hour, after four months should net $3,200.

Tell the customer it is a equipment charge and it will cover any and all Equipment that his job will need, scaffold ,brake, pressure washer or what ever.

It should cover anything you would need to rent or bring from your shop.


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## katoman (Apr 26, 2009)

jeffatsquan said:


> Bump your rate up $5.00 per hour, after four months should net $3,200.
> 
> Tell the customer it is a equipment charge and it will cover any and all Equipment that his job will need, scaffold ,brake, pressure washer or what ever.
> 
> It should cover anything you would need to rent or bring from your shop.


This is why I love this site. Never thought of that. Great idea, I'll think about doing that. Thanks


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