The theory is simple: instead of buying a household item or a piece of clothing or some equipment you might use once or twice, you take it out and return it.
The theory is simple: instead of buying a household item or a piece of clothing or some equipment you might use once or twice, you take it out and return it.
This sounds neat until it’s run for profit.
There is a business in my town. There’s probably one like it in your town. They rent power equipment. Anything from pressure washers to bobcats to bouncy castles. And as a man who has needed to drill precisely 8 holes into a concrete slab in 37 years, there is a genuine value proposition in renting a hammer drill for an afternoon compared to buying one.
How would that ruin it?
Modest profit isn’t an issue, but most businesses of more than a certain size accumulate MBAs like some kind of parasitic fungus. They then proceed to wring out as much money as possible in the short term while destroying the business in the long term.
If it’s just a local guy making 5% or so a year off his one rental shop, that’s no problem.