1. Percentage of utilization

If there is even a small chance that the equipment you are thinking of purchasing will not be in operation 100% of the time, it is essential to look at the total cost of usership. Our experience has shown that once the rate of utilization drops to 40% or lower, the flexibility afforded by renting makes it the overwhelming favorite. Allowing you to increase capacity for recurring or emergency peak shaving and decrease it in response to both foreseen and unforeseeable downturns in production.

2. Cost of utilization

When most people think about operating or utilization costs, they think about repairs and maintenance, and the cost of parts and labor. But what about things like electricity or fuel consumption, installation time, ease of operation? Not to mention the issue of reliability and the indirect costs of potential downtime! All of these costs go up as your machine gets older. And the potential cost savings of newer, more efficient technologies can only be booked as a missed opportunity.

3. Agility of utilization

Flexible decision making is an important part of an agile organization. One that is capable of adapting to market changes efficiently and effectively. Renting essential equipment typically involves much shorter validation procedures with fewer stakeholders. Thus lowering the barriers to financial decision-making and saving valuable time throughout the whole process. And we’re sure we don’t need to tell anyone that time is money.

Total cost of usership: everything you need to know

The way we think about ownership is changing, and many B2C industries are already adapting accordingly. So why shouldn’t we? Especially when use is subjected to fluctuations that are becoming harder and harder to predict.

"Goodbye ownership. Hello usership!"

Wondering whether usership is relevant for your business?

Calculate your tipping point Download our free e-guide ➔

"Goodbye ownership. Hello usership!"

Wondering whether usership is relevant for your business?

Calculate your tipping point Download our free e-guide ➔

More and more companies are making the shift from “owning” to “using”. The concept of usership touches on many different, often complex factors. Therefore, the independent European Rental Association and the Solvay Brussels School of Economics and Management developed an objective and transparent method of calculating the total cost of usership of any given piece of equipment. The criteria go beyond the financials alone and include such factors as support services, sustainability, logistics and access to expertise.

There are many factors that determine the respective advantages of renting and buying. For each organization, the “crossroads” at which they intersect will be different. But overall, the equation revolves around three main parameters.

Of course, renting and buying need not necessarily be mutually exclusive. A combination of both is quite common and, in many circumstances, to be recommended. By renting a proportion of your base and/or reserve capacity, you retain maximum control while sharing the liability during peak production and adding an extra buffer of reliability to your operations. All with the added peace of mind that your machine park – the means with which you create value as a business – is in the hands of trustworthy specialists.

Peak shaving during harvest season

Modular power plant for a brewery in full expansion

Total cost of usership: everything you need to know

Let’s talk usership versus ownership

How to improve the agility of your operations?

The true value of ownership is use

Are you considering all aspects before making an investment in new equipment?

When to use, when to own?

1. Percentage of utilization

2. Cost of utilization

3. Agility of utilization

So when to rent, when to buy or when to do both?

Usership in action: how other companies optimized their balance sheets through usership.

Contact us

Atlas Copco Specialty Rental - India

Working with Atlas Copco

Total cost of usership: everything you need to know

Let’s talk usership versus ownership

How to improve the agility of your operations?

The true value of ownership is use

Are you considering all aspects before making an investment in new equipment?

When to use, when to own?

1. Percentage of utilization

2. Cost of utilization

3. Agility of utilization

So when to rent, when to buy or when to do both?

Usership in action: how other companies optimized their balance sheets through usership.

Peak shaving during harvest season

Modular power plant for a brewery in full expansion

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Contact us

Atlas Copco Specialty Rental - India