Temporary Fence Rental: Fast ROI Idea to Diversify Your Contractor Business

Diversification helps protect your business from downturns in the economy and changes in consumer behavior. When you diversify, your business develops additional revenue streams —? revenue streams that may thrive even if your original business struggles.??

If you're a fencing installation contractor, your workers are used to the fencing industry and working with fencing materials. You have tools and equipment on hand that make fencing transportation easier, and you have industry contacts you can fall back on when you need help. If you're looking for a quick way to diversify your business, why not consider temporary fence rental???

In this article, we'll talk about what you need to know to start a temporary fencing division within your business. We'll discuss?costs, pricing, return on investment, and other information you need to start your temporary fence rental division.??

How Much Does It Cost to Start Renting Temporary Fence??

Starting a fence rental division is especially affordable for a fencing contractor with storage space, labor, and some basic equipment already on hand.??

Panels?

Chain-link fence panel starter kits include a chain-link panel, stands, and hardware. These are the basic items you'll need to start renting fencing to your first customer.?

These kits are available for $129 and comprise one fence panel, one clamp, and one stand. As a rule of thumb,?you'll?need 240 panels to build a fence line up to 2,400 ft. By getting these kits in a bulk order, you can even lower the initial investment.?

Storage?

Storage is easy when you have a steel Sollage rack for stacking your chain-link panels. These galvanized storage and transportation racks can be used to secure panels for transportation to prevent panels from being damaged or lost in transit.?

If you're wondering how much storage space you'll need, a truckload of fencing covers 380 square feet —?that's an 18-wheel trailer. If you have a forklift, Sollage racks can be double stacked to take up half the space (190 square feet).?

Labor?

It takes just two people to install a standard temp fence perimeter, and if you have a forklift, the process will be even faster and easier.?That means you can easily leverage?your current team when starting temporary fence rentals.?

It takes two workers just one hour to install 250 feet of temp fencing. Three workers can install 375 feet of fencing in an hour. If your rental division grows large enough, you may choose to hire dedicated workers for installation, tear-down, and administration of fence rental.

Transportation?

You probably already have a flatbed, stake-body truck, trailer, or similar vehicle for your fence installation business.?If not, you'll need one of the above?to successfully transport your fence rental products to your customers.??

How to price a fence rental???

When you're pricing your fence rental,?do some research on industry in your area?to avoid over-or under-pricing your product. A typical fence rental is approximately $3 to $5 per linear foot.??

Costs can go up depending on many things. Will you be adding a padlock to the temp fence enclosure? Is the installation taking place on a weekend? Does the client need security temp fencing? You can increase costs based?on whatever extra features your client requires.?

What is the return on investment??

Renting at the prices mentioned above, you should be able to recover your costs in just two to four temporary fence rental contracts.?

Let’s simulate a scenario. If you get a truckload bundle consisting of 240 6'x10' panels, clamps, and stands,?you can build a fence line of up to 2,400 feet?—?for an investment?of $20,880 plus shipping. That comes down to less than $87 per panel.?

If you land a project that requires just half of your inventory — 1,200 linear feet of fencing — and you rent them out for the lower end price of $3 per linear foot, y you'll earn $3,600 in monthly revenue, totaling?$10,800 at the end of 3 months.?

That's without factoring in the extra revenue you'll earn for installation, removal and maintenance. Additionally, you could potentially raise the linear foot price, according to your region.?

?Of course, you'll need to protect yourself by writing strong contracts.??

• Lost panels. Write a clause into your contract that a addresses lost, damaged or stolen panels.?Do not make yourself?responsible for these costs.??

• Extra fees. Charge clients up front for the first month of rental, installation fees, and removal fees. Once the job is done, recovering removal costs from clients can be challenging.???

Charging clients these fees up front means you'll receive relatively large payments for the first month of rental. This can help cover some of the costs of starting a rental business.?

And since you have a larger inventory, you could have multiple projects going on simultaneously, meaning you can get your money back very fast with just?two or three simultaneous projects.?

Find an Industry Partner?

Partnering with SONCO can help you get your rental business up and running in multiple ways. ?

• We'll help you find your initial clients. We refer clients to our temp fence rental partners around the U.S. ? ?

• We facilitate payment for new businesses. When buying from us, you can join the?'Buy Now, Pay Later'?program, giving you 90 days to pay for your purchase, which helps maintain your cash flow.? ?

• We'll deliver the products to you when you need them. We guarantee expedited delivery anywhere in America.? ?

• We also deliver panels directly to clients' locations. You'll need to be there to sign for the delivery and install the product, saving you transportation costs on that project.?

An Easy Way to Diversify Your Revenue Stream??

Temporary fence rentals is a?'low-cost, high return on investment'?business model for existing fence installation contractors. You'll get a down payment for your first order and only then do you need to buy the products. The products will be delivered directly to your client's location, helping you save on transportation and storage for your initial order.??

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