Trailers are handy for many purposes, including transportation, advertising, and business ventures. They can be customised and fitted with trailer parts online to make hauling more manageable and efficient.
However, few people have the means to own or store a trailer, prompting them to rent one instead. This demand opens opportunities for a trailer rental business, which is considered highly profitable.
A trailer supply store and rental is a fantastic business model, and if you’re planning to start one, here are some helpful tips:
Know the Trailer Types
There are many different kinds of trailers, each with distinct purposes. They can range from hauling residential cargo to heavy construction equipment. Before you begin your rental business, having good knowledge of various trailer types is essential.
Below are some of the most common trailer types:
- Utility trailers
- Enclosed trailers
- Car trailers
- Machinery and equipment trailers
- Tipping trailers
- Offroad trailer
- Tandem and single-axle trailers
Remember, each trailer has a different purpose and carrying capacity, so it is always best to select which type has higher demand in the rental market.
Compute Investment and Return
It can be tempting to buy the most eye-catching trailer you see from online dealers, but you need to ensure they have a decent ROI. When purchasing a trailer, look for one with minimal purchasing costs, earning at least half the investment.
Customers demand a functioning and safe trailer, so buying a brand-new unit as a start-up is preferable. You can also claim depreciation on new trailer purchases if you are using them for business.
Business Operating Expenses
Next, determine the costs of operating your trailer rental business. Besides the upfront costs of purchasing the trailers, you must also factor in the expenses for upkeeping and maintenance of your trailer assets, tyres, insurance, licensing, and many more. Determining your operating expenses can help you calculate the capital needed to launch your business.
We recommend creating a business plan to make your computations and decisions easier to manage.
Purchase Trailers for Your Business
There are plenty of trailer manufacturers you can source your trailers from. However, not all offer the quality and performance customers seek from their vehicles—partner with Trailers 2000 today to obtain Australia’s best top-grade galvanised steel trailers.