How to start a truck rental business? How much can you earn on it?
Truck for sale and rental are a good business idea. This type of machine performs road and construction work and is in constant demand due to its versatility of use and convenient design.
In this article, we’ll take a closer look at how you can start renting a business and how much you can earn.
First, let’s study types of trucks, features and the functions they perform.
Types of trucks
This special equipment can be wheeled and tracked. The first are more versatile and maneuverable. They overcome any distance and can lift quite heavy loads. Tracked loaders are used on construction sites, as they are heavier, clumsier, and require additional vehicles to transport them.
Other specifications include dimensions, turning method, transmission type, number and kinds of attachments installable on a truck. Once you’ve chosen your machine design and made a list of planned services, start researching the best option for your business.
Trucks manufacturers and cost
Among the most popular manufacturers of special equipment are:
- XCMG, LongGong, Everum, SEM, Foton (China);
- Hitachi (Japan);
- Caterpillar, Komatsu (USA);
- Doosan (South Korea);
- JCB (Great Britain), etc.
For business, there is no need to buy new vehicles, pay attention to used ones.
Depending on specifications and manufacturer, truck prices can start at $19,000-20,000 and go up to $100,000.
Where to find clients?
Once you decide to start a rental business, you may wonder where to look for clients. You can not only use paid bulletin boards, but also create your own website with contextual advertising, distribute flyers in some areas of the city, cooperate with sawmills, warehouses, construction companies, or participate in tenders for the maintenance of urban infrastructure. Be patient, gradually you’ll manage to have customers who will recommend you to their acquaintances.
How much money do I need to start and how much can I earn?
To launch a business, you need to calculate the amount you’ll have to shell out at the start. Everything will depend on the loader’s cost, and the rest of expenses will go to paperwork and advertising. On average, the starting amount is about $30,000-40,000. Then, monthly expenses will include taxes, depreciation, fuel, and, again, advertising.
Earnings can range from $200 to $300 per forklift shift ($25 – $38 per hour). From this amount, exclude fuel (about 20%, driver’s salary – 25%). Better to drive by yourself, especially, in the beginning. You can calculate monthly income based on the number of shifts or working hours, excluding taxes, ads and repairs.
As a startup option, leasing trucks is great in big cities where infrastructure is being actively built. Be prepared for fairly high competition, so think beforehand about your advertising strategy and ways to increase your loyal customer base.