Episode 59: Should You be Renting out Your Machines?
RENTING OUT YOUR MACHINES & SPACE. What would you do if you were approached by a company looking to rent out not only some space in your shop, but some of your machines to go along with it?
On this episode of MACHINE SHOP TALK, Ian Sandusky from Lakewood Machine & Tool is heading back into the Practical Machinist forums to tackle this sticky situation.
While unorthodox business deals can certainly be lucrative, the above situation might have some pitfalls you should be aware of. While subletting space can be a fantastic way to help a fledgling shop ease its overhead costs, you should consider the following before entering a deal:
1. Do you really want people running your machines? As Ian outlines, there is a way to run CNC machine tools that keeps them in good condition, and conversely, it is very easy to damage them if you aren’t careful. If you are renting out machines, do you trust the people running them to keep your expensive machines in good working order?
2. LIABILITY! Whether for your machines or injury to people in your shop, taking on liability is the responsibility of the shop owner. Taking appropriate steps to ensure safety protocols are followed is critical – but do you want to be responsible for a sublet’s staff as well?
3. How exactly is this scenario a benefit to you and your shop? In a trade where we already sell machine time, how could this kind of deal be more beneficial to the shop owner versus the traditional method of quoting out the work?
Have you ever been in this situation, or know of a deal like this that worked out? Let us know in the comments below!