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Re: xZx post# 37239

Tuesday, 11/20/2007 5:20:27 PM

Tuesday, November 20, 2007 5:20:27 PM

Post# of 107353
Brikk, another phenomenon in the rental business down here on the GOM is the existence of hurricane season contracts. Take, for instance, industrial strength generators. Try renting one once a hurricane has been modeled to hit your neck of the woods. All gone. Ergo, the hurricane rental contract. For a price paid in the offseason, your company can guarantee itself the availability of that generator (or LARS???) during hurricane season. So, in reality, the rental company still generates income on the equipment in the offseason and in season even when its not in use. BTW, those contracts aren't as cheap as you might think. Apparently, being without necessary equipment is not a price worth paying.
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