And in that sense, the lumber rental business represents a high value alternative for small and medium construction projects.
What is the need to solve with this business?
Any person or company that starts a small or medium construction project, especially speaking of concrete constructions, finds it necessary at some point to need a good amount of rustic wood to support the work to be done.
Regularly, the wooden planks are used for: raising of columns, casting of slabs, support of terraces, temporary stairs, etc.
What is the business?
As the title of the post describes, the business consists of renting wood for construction, which basically consists of planks and pine wood poles of different sizes.
The service includes the transfer and placing of wood on site as well as its removal, which is rented regularly for periods of 30 days.
What do you need to start a lumber rental business?
The main investment of course is in the acquisition of the wood that can be made in any nearby sawmill. The ideal type of wood for this purpose is pine wood.
To find out what measures are recommended, it is convenient to consult with a master builder or bricklayer in your region who can tell you what the usual standards of housing construction are. We can be talking about boards 6 to 8 feet long and uprights of a similar measure.
It is also important that according to your investment possibilities You start with a supply of adequate wood to meet small construction needs and as you grow, be able to attend larger works.
Additionally you should contemplate within your business plan:
- Warehouse for wood storage. If you can, you can adapt a space in your residence for this purpose, in order to save some costs, otherwise you will have to rent a warehouse in an accessible and safe place.
- Truck type vehicle to transport the wood. Due to the cost it represents, while you have the possibility of acquiring your own vehicle, you can ally yourself with a truck owner or “freighter” to be able to work together, obtaining better prices for the transfer and earning both for the work.
- Assistants for shipments and deliveries of wood on site. It is important to get a few helpers per deal or per week that you can count on when you need to ship. These are the people in charge of raising the wood, checking the state in which it is moved and lowering it at the time of delivery.
How is the service charged?
The service is regularly charged per calendar month of 30 days.
The wood is charged unit either per plank or per delivered paral.
You must establish and indicate to your client how much the time fraction will cost if they require the product for more than 30 days.
You must consider in your delivery, a deposit charge that must be no less than 30% of the value of the contracted product. This will serve to replace any missing or returned parts in poor condition. Delivery is regularly made and invoiced upon receipt of the returned material.
How much to charge for the rent of the wood?
This is the million dollar question since for this, you must make your own budget that allows you to determine the profit margins you want to obtain and that you should consider:
- Warehouse and storage costs
- Transfer costs Personnel costs (helpers)
- Vehicle depreciation costs
- Wood depreciation costs
- Accounting costs
- Tax payments
- Security
- Others
The strength of this deal It is in the speed of delivery and the appropriate conditions for the client, but above all, remember that rental and rental businesses are very convenient in the sense that you invest in the product once and you can make a profit for it many times.
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