Why Is There No Damage Bill at the End of an EaaS Term?

In a traditional rental, a customer can pay hundreds of thousands of dollars over the term and then get a bill for hundreds of thousands more at the end for what happened to the machine. Bulk Equipment Corp., a brand-independent heavy equipment uptime partner serving heavy industry across the Midwest and Southeast, does not run its EaaS program that way. Bulk understands the application a machine is going into, and in a steel mill a machine gets abused quite a bit more than most. That is known going in, so when the machine comes back Bulk is not charging tens of thousands of dollars for what the mill did to it. The machine returns, and the next one is put in its place.

How Does Daily Maintenance Keep the Machine Safe and Running?

Under EaaS, Bulk keeps the machine in the best condition it can be in, and safety is number one: a machine that is maintained properly keeps its operators safe. A machine like this has to be touched every day to make sure it is taken care of and can do the job safely and properly, which is a different level of attention than a traditional dealer’s model provides. The job is to maintain the machine appropriately and keep it running so the mill can produce steel. The machine should never be the bottleneck for producing steel, because downtime costs money.

What Does Buying Hours, Not a Serial Number, Mean?

With EaaS the customer is buying a number of hours of production, not a specific machine. If the hours you need are more than one machine can deliver, a backup machine on site is part of the package so those hours get made. A traditional dealer does not offer that, and it does not offer the other half either: a machine that has been maintained appropriately throughout its life comes back at the end of the term without a big bill attached.