Detail information about the listing
Buy all or part of 12-year-old existing business. Owner is available to stick around or leave. Expansion of this business easy with additional locations already locked in and available. We are based out of Tacoma, but have the option of other sites, one on I-5 in Lynnwood, another on Hwy 167 in Kent, and our original very busy location on 56th and I-5 by the Tacoma Mall. We are currently located in Parkland Tacoma, WA on the busy 4 lane Pacific Ave.
We have a very unique business model in which we have a very limited rental menu that consists primarily of only 3 things, and that is: A non-commercial dump truck, an equipment trailer, and a compact piece of equipment such as a rubber tired or tracked Bobcat skid steer or a mini excavator. The other thing different is we are open 24 hours a day, 7 days a week. This is unheard of in the rental industry. No one really comes at 2 in the morning, but we are certainly busy until 9 or 11 at night for sure. One of our employees actually lives on location and is available to help 24 hours a day. We have 4 employees.
We also accept cash and electronic payments such as Zelle, Cash Appl, Venmo and Paypal, whereas most larger rental yards require either a credit card or in house charge account. The reason the others require this is because historically the customers that steal equipment will be those paying cash. We level the security playing field by using a variety of very carefully hidden GPS satellite tracking units for each asset. For whatever reason, there is a significant segment of our customer base that prefers paying cash for rental equipment.
We have a very limited rental menu consisting of primarily a dump truck, an equipment trailer and a piece of compact equipment. We leave the rental of chain saws, weed eaters and pressure washers to Home Depot, who can buy all brand new small rental gear every 4 months, and who also enjoy having a small engine mechanic on speed dial at all times. Our out the door rental is about 800 for the truck, trailer and piece of equipment; the Home Depot weed eater could be 26.
There is something to be said for simplicity of operations. We offer convenience by never closing. Quality by buying top of the line equipment and not cheaper versions that contractors hate. We offer speed by being able to move equipment around 24 hours a day.
When fast food giant McDonalds began in 1955, it was simplicity, speed convenience. Dick and Mac McDonald perfected their Speedee Service System featuring a limited menu including fifteen cent hamburgers, shakes and fries. The concept works for McDonalds, and it works for us.
It takes nothing for us to open another location. All we need is a freeway and a piece of dirt with some gravel. There is no need for a fancy office, yard, shop or expensive long term commercial rental lease. This is another thing unique about our concept. Our operations can be mobile with nothing more than a job shack trailer on that piece of dirt. Our business model is not location dependent.
We have a steady customer base and we actually take steps to slow business down a bit by not using any Internet based advertising, nor advertising anymore on the sides of most of our equipment, nor using much in the way of signage. Our location and customer base currently drives all the business we can handle. If you were to buy a used dump truck for 24k, you would without question earn back at least 25k in a year on that truck, and your truck would still be worth the same 24k at the end of a year. That’s the kind of return we can offer you. On new equipment the amount of revenue is higher. If you have four items, such as trucks and equipment of some sort, after expenses, you’d expect to earn about 10k a month on 4 items. This is mentioned to give you an idea as to return on investment, and it’s a basic rule of thumb for ROI for this business.
Great passive income too.