It’s sometimes pointed out that customers don’t buy products, but solutions.
Answering a market need for a solution, whatever the solution is, is a function of what a purchased product can accomplish. Everything else is details.
But what if you didn’t need to buy the product at all? What would it matter? It wouldn’t, and this is why so many people rent.
And so it is with compressors, an essential piece of equipment on any mining site. The entire spectrum of mining activities – all the way from exploration to processing – requires compressed air.
Activities like heap leaching, the use of flotation cells and wastewater treatment (after all is said and done) all require air compressors. Mostly, these are large stationary electric compressors.
Again, such an essential piece of equipment is a solution, and the need to own it isn’t clear, especially with rental periods of three to five years as an option.
And there are many reasons why renting is the superior option, if a long-term-lease is available does it cover any of the mishaps that might lead to downtime on this critical application. The cost of maintenance and repair needs to be negotiated as part of the lease.
And the price of capital expenditure when buying is only the beginning when it comes to cost. There are, in fact, three types of cost when it with a compressor purchase – visible costs (including interest rates, repair, consumables and more), hidden costs (such as logistics, administration, technical support staff) and unpredictable costs (for example changes in cost of power, extraordinary maintenance and changes in legislation).
Renting includes the cost of maintenance straight up. It’s also deductible from your company’s tax.
Renting a compressor also includes expert advice and support on how to get the best use out of the invaluable machine.
Aside from saving on maintenance expenses, renting from a well-run supplier means being provided with state-of-the-art equipment.
And in the event of compressor failure, costly downtime can be avoided if the hire company immediately offers a replacement machine from its fleet.
All in all, there are nine reasons why you should consider renting instead of buying.
The savings reason is a no-brainer. Having the latest equipment with up to date performance and energy saving. Then there’s flexibility regarding future plans, followed by around-the-clock support.
Space savings are realised, too, by not having to warehouse a fleet of machines. This is followed by reduced downtime, avoidance of expensive repair costs, and a simplification of bidding and billing.
Lastly – and it’s no small thing – is the ability for you to invest the saved capital back into your own business.
Atlas Copco Rental supplied their first piece of equipment in Australia in 1944, and is a leading name in compressors in the country, with branches and offices to support their customers Australia wide.
The company has recently started lending its expertise to long-term hire, bringing all the benefits of renting to customers wanting to use its fleet of large compressors.
To find out more about Atlas Copco’s fleet, click here.