Opening a second plant hire depot

When a second depot makes sense

• A large share of enquiries comes from an area beyond your delivery radius.
• Delivery costs and driver hours to that area are eating margin.
• Your first depot runs smoothly without you being there every day.
• Your KPIs and cash flow show you can fund it.

Choosing the location

• Map enquiries and hires by postcode to find the cluster.
• Good road access to that cluster.
• Space, security and planning use as for your first yard; see finding a yard.
• Local labour for drivers and a fitter.

Operator licence

If goods vehicles will be kept at the new site, it needs to be authorised as an operating centre on your O-licence, usually by applying to vary the licence. You may also need to increase the number of vehicles and trailers authorised. Apply well ahead: variations take time and may be advertised for objections.

People

• A depot manager you trust to run hires, staff and customers.
• Local drivers and fitter cover.
• Clear authority: what the manager can decide (prices, credit, purchases) and what needs approval.
• Regular visits and a weekly call with numbers.

Splitting the fleet

Start the new depot with machines that are in demand in its area, moved from the first depot or bought new. Allow machines to move between depots when one is busier; your booking system should show availability across both.

Systems for two sites

• One booking system showing all machines and both depots.
• Shared phone number or call routing so customers don't need to know which depot to call.
• Same procedures and paperwork at both sites.
• Reporting by depot: utilisation, revenue, margin.

The numbers

Budget for rent, rates, security, set-up, vehicles, staff and machines, plus several months of running costs before the depot pays its way. Compare it with the alternative: charging more for long-distance deliveries or cross-hiring locally.