Renting vs Purchasing IBC Containers: Exploring The Benefits
In today’s competitive market, businesses across various industries face the challenge of managing their assets efficiently, especially when it comes to Intermediate Bulk Containers (IBCs). These containers play a crucial role in storage and transportation. In this blog post, we’ll explore the benefits of renting vs. purchasing IBC containers outright.
COST-EFFECTIVENESS OF RENTING IBCS:
First and foremost, let’s highlight the cost-effectiveness of renting versus purchasing IBC containers. Purchasing new assets can be quite a significant investment, with the cost of a single IBC typically ranging from $3,000 to $5,000. When you multiply that many times over for a fleet of IBCs, the capital outlay can be substantial. Conversely, renting offers a cost-effective alternative, with payments spread over the life of the contract, often being tax-deductible. For more information on the tax benefits of renting, see IRS guidelines.
FLEXIBLE RENTAL PLANS AND INDUSTRY APPLICATIONS:
Precision IBC serves a wide range of industries including chemicals, oil and gas, food grade, pharmaceutical, paints and coatings, and distilling. Our containers range in size from 126 gallons to 793 gallons and are governed by 49 CFR UN/DOT requirements. To learn more about 49 CFR UN/DOT requirements, visit Department of Transportation. Much of our business revolves around rentals, with over 50,000 assets currently in circulation. Therefore, we offer flexible short- and long-term rental plans, allowing customers to lock in their packaging costs for the duration of their projects. The demand for rented tote tanks is booming, driven partly by soaring costs for reusable containers and extended lead times.
Flexibility and Adaptability:
Flexibility is one of the primary reasons customers opt for renting over buying outright. Companies often purchase IBCs to fulfill specific contracts. However, once the contract ends, they’re left with expensive assets sitting idle, consuming, or taking up valuable space. By partnering with a best-in-class IBC rental company like Precision IBC, businesses can mitigate some of this risk. Renting from us costs less than buying, and you can return the tank when the job is done. Additionally, our customers benefit from 24/7 support and the reassurance that the containers are safe and well maintained.
ADAPTING TO MARKET CONDITIONS:
In recent years, we’ve seen oil prices slump from over $100/bbl to around $20/bbl. As a result, our rental customers were able to adapt to this shift in market conditions and return their containers or replenish stock when prices rallied. We’ve also encountered scenarios where our customers initially utilized a fleet of 550-gallon tanks, only to acquire new business opportunities that demanded 350-gallon containers instead. Instead of buying new IBCs, customers adjusted rental specs, swapped assets for smaller IBCs, thus avoiding expenses and maximizing efficiency.
SUSTAINABILITY BENEFITS:
Furthermore, sustainability is another driving factor behind the preference for renting. For businesses committed to reducing their carbon footprint, efficient use of IBCs and their return, rather than disposal in landfills, presents an environmentally friendly solution.
ASSET TRACKING:
To help you manage your IBCs more effectively, we recommend implementing asset tracking software to ensure you’re maximizing tank usage and preventing loss of these assets. Responding to customer demand for container tracking, Precision IBC partnered with TrackAbout to offer a comprehensive tracking solution. TrackAbout’s best-in-class software helps to monitor these valuable assets and manage your fleet with real-time tracking, so you instantly know where your product is, its handling history, and more. Consequently, with accurate tracking in place, businesses can minimize revenue loss from misplaced or delayed returns. It also resolves customer issues quickly and allows businesses to implement late return penalties if they choose.
Learn More About Our Services:
Finally, Precision IBC supplies new and reconditioned stainless steel and poly tanks nationwide, your one-stop shop for Intermediate Bulk Containers. To find out more about our rental services and tracking solutions, visit Precision IBC.
This blog post is in partnership with TrackAbout.