Do You Mark Up Rental Equipment?

Do you mark up rental equipment (lifts or anything else)?

We do add a small markup. This is mainly to cover us in case the rental company raises rates, we are forced to go to a different rental company that might charge more then we are use to, or we wind up needing it for longer. 

We also charge sales tax on it because that is what California says that we have to do. 

But we just had a rental company tell us that they would not rent to us because we added a markup and charged sales tax. That they viewed that as a "re-rent" and there for couldn't rent it to us. We assured them that we would be the only ones operating the equipment and storing it on the customers' site where they dropped it off. We provided them a sales tax certificate. But they still said no. Doesn't make any sense to me. 

I would like to know if... You mark up the rental cost? Do you charge sales tax? Have you had any issues with rental companies for that?

 

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