In a recent survey of its customers, leading technology rental company Go Rentals reveals the top five reasons in 2019 that companies are renting computers, and their directors comment on the results. Here they are:
Customers we asked to pick the primary reason they rented computers in 2019:
- I need a managed solution: We need a complete solution delivered, and don’t have the resources to manage it.
- I need flexibility: We do not know how long we need the equipment for.
- Cashflow reasons: We do not have the cashflow or the finance right now to purchase, or the new cost is too expensive.
- Scale: We need a lot more equipment than is feasible to buy ourselves.
- Urgency: We need the equipment fast, and procuring will take too long.
Managed solution came out tops by 34%
“This is not surprising,” comments Ron Keschner, Sales Director of Go Rentals. “Companies often focus on the rental price of the core item only, and overlook the extras required to complete the solution. For example, software, delivery, insurance, cables, peripherals like mice and keyboards, technical set-up and more. When you rent, you get this all in one place.
Flexibility came next at 23%
“There is a lot of uncertainty in markets at the moment,” says CEO Evan Berger. “Rental provides flexibility to get the equipment you need, and return it and stop paying for it when you no longer need it.”
“This was usually a reason for smaller businesses to turn to rentals,” says Keschner, who has spent many years in asset finance. “But, currently, it affects larger businesses too. Banks are tightening on lending, and the R/$ exchange rate has made new equipment unaffordable to many.”
Many rentals are for projects that require more equipment than is feasible to purchase, or the logistics are too broad. “For a small business, it may be the few extra laptops, or for a large organisation which is conducting training nationally. For government, it could be national elections that we recently rolled out,” says Clayton Heldsinger, Managing Director at Go Rentals.
There is a lot less planning happening today. We live in fast-moving times, where customers want you to deliver a project right away. As a result, companies then require equipment right away, often before they have been paid.