How does a shipping container sales and rental business make money?

Sellers describe a container business in a sentence, but the books usually show several kinds of income that behave differently. Some come in once and are gone. Others repeat every month. Knowing which is which tells you what you would be taking over. Ask the seller to split the income by line before you read anything else about the business.

Sales

A sale is a one-off. The business buys a container, holds it for a while and sells it, often with delivery. Ask how the seller finds containers, how long they sit in the yard before they sell, and whether customers come back. Ask for a run of ordinary months as well as the best one.

Leases

Leases bring in income on a schedule, as long as the container stays out. Ask how many are on lease, how long customers usually keep them and what happens when a lease ends. Look for containers that are rented but not being paid for, and for containers that nobody can locate. Read the lease terms for who carries damage and loss.

Delivery, modifications and storage

Delivery and pickup earn money, but they also cost trucks, fuel, drivers and time. Ask whether the seller charges enough to cover them or uses them to win the sale. Modification work, such as doors, windows or shelving, is a skilled trade inside the business, so ask who does it. Storage in the yard depends on space and the yard’s terms.

What to ask the seller

• Which lines grew, shrank or stayed flat over recent years?
• Which customers return, and which buy once?
• What costs sit behind each line?

The checklist for buying a container business covers the fleet, yard and trucks in more detail.