There are many scenarios where renting is ideal, and even preferred. However, when renting a chipper becomes a regular part of the monthly budget, it’s time to consider ownership. Photo courtesy of Bandit.
which is why many rent,” says Cody Labriola, regional sales manager for Vermeer All Roads. “We oen see a tipping point when a tree care compa- ny transitions into removals from just pruning. Removals require a larger chipper, and if removals become a full- time business, renting isn’t suitable in the long run because those costs can run around $4,000 to $5,000 per month, whereas financing a chipper
can come in closer to $1,500 to $2,000 per month, on average.” Another common tipping point is win- ning regular contract work with cities and municipalities. “It makes sense for a business owner to rent a chipper for the first contract,” says Joel Schuman, vice president of national business development for Western Equipment Fi- nance. “They might not want to invest in
aspects of safety.” Hicks suggests that having the proper training in place en- sures a company owner has built a busi- ness that supports owning a chipper. There are a few scenarios when rent- ing is preferable, such as when you’re getting started or need a chipper for one-off jobs to cover when a machine is down for service or the business is experiencing higher-than-normal work
a $100K chipper for a six- month contract, but when they continue to be award- ed that contract it’s a solid reason to make the jump from renting to owning.” Bottom line, there are many scenarios where renting is ideal, and even preferred. However, when renting a chipper be- comes a regular part of the monthly budget, it’s time to consider ownership. NEW VERSUS USED There are merits and downfalls to buying new
volume. “If you have a smaller chipper and oc- casionally take on bigger jobs that require addi- tional capacity, it makes sense to rent unless you find yourself consistently needing larger capacity,” suggests Jason Morey, marketing manager for Bandit Industries, Inc. “Many rental places are starting to invest in larger machines because com- panies are experiencing hiring shortages and need bigger chippers to mecha- nize the difference.”
For many, the tipping point is when the cost to rent outweighs the monthly finance payments to own a chipper. “Buying a chipper, whether new or used, is a big purchase for any- one, especially when just starting out,
If removals become a full-time business, renting isn’t suitable in the long run because those costs can run around $4,000 to $5,000 per month, whereas financing a chipper can come in closer to $1,500 to $2,000 per month, on average. Photo courtesy of Vortex.
and used, and the direction a tree care company owner takes entirely depends on their business philosophy and finan- cial needs. Here’s a quick and dirty out- line of the pros and cons of each.
8 | ArborTIMES Winter 2023
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