Mike Andes says home service businesses waste money buying trucks and equipment they barely use. Rent instead if you'll use something fewer than 3-4 days a week. Tax write-offs don't make up for insurance, storage, maintenance, and repair costs.
Manufacturers of equipment and trucks is what sucks out all the profit from the home service industry at the end of every single year. And again, it's usually tied to the second lie about Section 179. It's like, oh, you got to come write things off when reality. If we just focus on making more profit and using our current equipment more often, we'd make much more money. If I'm not going to be using a piece of equipment at least three to four days a week, I'm going to try to rent it. And I know it hurts to spend money on rentals, but keep in mind, when I pay that rental fee, I don't have to cover insurance extra costs on that piece of equipment. I don't have to store it at my shop space. I don't have to maintain it. If it breaks, I take it back to the rental place and they fix it. They do. The oil changes like oil filters and tires and brakes on pieces of equipment that are large can be tens of thousands of dollars. So until I'm using a large piece of equipment the majority of my day, the majority of my week, I'm not going to buy that piece of equipment.
