Starting a Generator Hire business. Are we mad?

[WelshOT]

Currently run a Telecom Contracting business which means we dig roads, lay fibre etc. We're based in North-Mid Wales.
Thinking about starting a generator hire side of the business.
Roughly thinking of purchasing 5 Gen's between 60Kva-100Kva. Having one on stand-by if another fails on site and having engineer full time.
We'd be pushing for more longer term contracts say 28 days or more. Rather than the odd day or week.
Probably more on construction side but open to event hire aswell.

What is everyone's thoughts?
What margins can we roughly be expecting?
Manufactures to avoid?
Is it best we directly contact other contractors or wait for tenders, or both?

Thanks.

 

[Justme]

How will you handle the red / white fuel issue?

 

[Brendan]

How will you handle the red / white fuel issue?

Hire companies will start sending machines out empty

 

[Justme]

Hire companies will start sending machines out empty

True but they will come back with some fuel in.
Plus what happens if the hirer uses red when it should be white?
Does the hire company have any liability?
Should they give clear guidance which fuel should be used?
Seeing as its the HMRC an they seize the genny?
Will you have to flush it out & change filters after each hire?

 

[Justme]

Just spotted these questions & replies

If a customer adds red diesel before returning the equipment (after 1 April 2022) would the hire company be in breach of the regulations if it were then to hire out that machine containing the red diesel added by the previous customer? Depending on the answer, we may be required to dip and analyse every diesel machine being returned.	You will need to demonstrate to HMRC if asked that the rebated fuel was put into the engine prior to 1 April 2022 and that the vehicle/machine was entitled to use that fuel then. If rebated fuel is added after 1 April 2022, then that tank will need to be flushed. It is your responsibility to ensure that this is done and that your customer does not add fuel that they should not to the equipment they have hired from you.
	If hire companies need to dip tanks, what level of analysis is required and how is this required to be recorded?	A simple visual inspection would normally be enough to show the hire company whether or not marked fuel had been added to the engine.

HMRC Answers IPAF FAQs on End to Red Diesel Rebate - Roofing Today

SECURING ADDITIONAL GUIDANCE for the powered access industry on the upcoming end to the rebate on red diesel for plant machinery,

www.roofingtoday.co.uk

 

[Steve]

I would be surprised if margins would be enough to keep a full time engineer with only 4 machines out but on the other hand you would like to think 4 generators wouldn’t need a full time engineer.

 

[V8Druid]

True but they will come back with some fuel in.
Plus what happens if the hirer uses red when it should be white?
Does the hire company have any liability?
Should they give clear guidance which fuel should be used?
Seeing as its the HMRC an they seize the genny?
Will you have to flush it out & change filters after each hire?

stipulate white only to be used and all cleaning of red from systems will be chargeable / deductible from deposit, which'll need to be a substantial amount. could also add that all contraventions would be reported to HMRC .. might deter most.

 

[Brendan]

True but they will come back with some fuel in.
Plus what happens if the hirer uses red when it should be white?
Does the hire company have any liability?
Should they give clear guidance which fuel should be used?
Seeing as its the HMRC an they seize the genny?
Will you have to flush it out & change filters after each hire?

Free fuel for the hire company.

 

[Justme]

Free fuel for the hire company.

That they cant use in anything so a potential cost to legally record the disposal.

 

[Brendan]

That they cant use in anything so a potential cost to legally record the disposal.

Plenty of heaters/burners plus yard vehicles

 

[Mogman]

Plenty of heaters/burners plus yard vehicles

Can you use red in yard vehicles

 

[doobin]

Plenty of heaters/burners plus yard vehicles

Can’t use it in yard vehicles or for commercial heating!!

 

[Mogman]

Can’t use it in yard vehicles or for commercial heating!!

We could save it all up and burn down the House of Parliament that guy called Guy had the right idea

 

[Brendan]

You all seem to be missing the point that it won't all be red diesel coming back, there will be white brought back and machines sent out empty

 

[doobin]

You all seem to be missing the point that it won't all be red diesel coming back, there will be white brought back and machines sent out empty

That will soon loose you customers. You hire a machine, you expect it to be ready to work.

 

[V8Druid]

That will soon loose you customers. You hire a machine, you expect it to be ready to work.

know what you mean .. really needs to arrive full and ready to rock, but how do you deal with the muppets who refill it with red for use/return .... charging is going to get messy enough for the cleansing process, without the problem of charging for a fresh fill, plus cherry disposal, to boot ... to sell it on to a legit user you would need to be RDCO registered ... and that's a faff in itself and can't use it your self, legitimately

Can’t use it in yard vehicles or for commercial heating!!

going to be a complete flustercuck

 

[Shovelhands]

know what you mean .. really needs to arrive full and ready to rock, but how do you deal with the muppets who refill it with red for use/return .... charging is going to get messy enough for the cleansing process, without the problem of charging for a fresh fill, plus cherry disposal, to boot ... to sell it on to a legit user you would need to be RDCO registered ... and that's a faff in itself and can't use it your self, legitimately

going to be a complete flustercuck

But your assuming that every person hiring the kit will have red to put in it in the first place, it might be the case within the next few months, but long term most people won’t even have access to the red to use. If the purchase of red is controlled then there’s not going to be much of it floating around.
Hire firms will have to charge a fully refundable deposit, and check the fuel on return of the equipment.

 

[Danny]

The factory we do work at have x3 generators with fuel tanks for heating on rental for the winter months, I asked them what are you going to do on April 1st? They were shocked made some enquirers and because there using it for heating purposes their allowed to continue using red?

 

[JD450A]

The factory we do work at have x3 generators with fuel tanks for heating on rental for the winter months, I asked them what are you going to do on April 1st? They were shocked made some enquirers and because there using it for heating purposes their allowed to continue using red?

Yes, but not for electrical generation. Heating only.

 

[V8Druid]

The factory we do work at have x3 generators with fuel tanks for heating on rental for the winter months, I asked them what are you going to do on April 1st? They were shocked made some enquirers and because there using it for heating purposes their allowed to continue using red?

Yes, but not for electrical generation. Heating only.

commercial generating is out too ... domestic only