Renting my Benchtop...Need Advice

[larsen]

I moved to Indianapolis a couple years ago and my Shopbot benchtop has been sitting in storage collecting dust. I have hopes of starting up my sign business again but that could still be a ways off. A local sign shop has shown some interest in renting my bot but I have no idea where to start. I have a lightly used 1996 24"x32" benchtop with an HSD 2.2hp spindle and 2hp Grizzly dust collector. I was thinking of charging monthly rent but would like some advice as to how much to charge. Also based on the value of the equipment should I charge a security deposit...if so, how much? I would also set up the equiptment and train an employee with past CNC experience how to operate the machine. Any and all help and advice would be greatly appreciated.

Thanks!!!
Nick

[bleeth]

I would determine what I believe to be a fair market value for selling it, turn that into payments over 3-5 years with fair interest, take 2-3 months as a deposit, and then rent it to them for that amount. Make sure you have damage responsibility in the agreement.
I actually did rent my machine to a company I was working for some years back. I was still making payments on it and I rented it to them for slightly more than the payments plus any specific repair/upgrade costs. Worked out well for both of us.

[shilala]

I'm not at all trying to contradict Dave's advice, cause it's solid.
I just wanted to mention that in my lifetime, I've had less than stellar returns when lending tools. If it's bought and paid for and collecting dust, I 'd leave her that way.
I understand it's not a hand tool and it's probably costing storage fees, and it's a thorn, but if you want to use it in the future for your sign business, it may end up requiring considerable capital to bring it back up to specs for your needs.
All depends how those folks would care for it. I'd think they'd just buy a machine if they're going to lay out the kind of rent that's fair.
Ideally, you'd set it up, run it, and charge them a fair rate for the work need done.

[larsen]

Thanks for all the advice. After careful consideration I've decided to sell it instead of rent it...I really don't know when I would start up the business again. When that time comes I will be considering purchasing something new, but in the interim selling mine is the best course of action. Thanks again for the advice.

Nick