When you hire equipment it’s hard to know what exactly you are paying for. But each product has been priced according to certain parameters which determine the cost for hiring it for periods of time. In this blog post, we’re going to break down the different factors that make up a hire cost to give a clearer understanding of why prices are what they are.

Storage and Utilities

What you don’t see when you hire a piece of equipment, is what happens behind the scenes. Everything will need to be stored somewhere and depending on the size of the equipment, the space required may be quite large. For example, trailer stages required substantially more space to store than other types of stages, PA systems will need more space than lighting systems. These storage spaces either need to be rented or purchased and that cost is added into the price of the hire, this also includes any utilities like electricity.

Competitors

Any good business will do their research when it comes to competitor pricing. Looking at what other companies are offering and comparing similar products helps determine the price of hiring equipment. It’s not the only factor, otherwise this would drive up the prices to unrealistic levels, but it’s a good benchmark to see if the price we have achieve from the above is similar to what other people are charging.

Profit

This is something every company will look at too. You can’t improve a business without reinvesting in it, therefore profit is necessary to keep the business going. It also helps businesses improve their services and to keep up with the times, particularly in industries impacted by technology. 

This is a very broad insight into how equipment pricing is calculated, and how as a company we continue to be able to offer our customers the best services and the best prices possible.