How to Grow Your Rental Business

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Insight for Industrial and Capital Equipment Industries

How to Grow Your Rental Business

Dan Salerno / Director of Sales | October 15, 2013

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How to Grow Your Rental Business

Construction equipment market analysts and industry surveys show a shift from contractor’s buying equipment to renting. Several reasons for the shift have been reported. A fluctuating U.S. and world economy as well as EPA emissions regulations top the list. Analyst Dan Kaplan estimates that in North America rental penetration now exceeds 50 percent. Analyst Frank Manfredi is forecasting a 16 percent increase during 2013 of rental construction equipment. If one of every two machines is being rented, failure to aggressively market your rental machines may be detrimental to the overall health of your dealership.  Here are some ways you can grow your rental business.

Acknowledge rental benefits

As much as you want your customers to buy, right now contractors see the value of renting. Acknowledging the benefits of renting equipment shows you understand how their business has changed. Let them know you are ready to meet their needs with an expanded rental fleet Large capital outlay is not necessary. Renting reduces equipment storage and maintenance costs. More choices are available with the type of equipment used. Machine obsolescence is not a concern. Operating up-to-date, modern, efficient equipment increases productivity.

Market your rental options

EDA data insights can help with your marketing efforts. Target contractors whose long-term leases are expiring. Use knowledge of what equipment was purchased in the past to promote relevant rental offers to former owners. Who was unable to obtain equipment purchase financing? Make rental offers to them. With new D&B data insights added to our EDA system you can identify those customers whose credit makes them good candidates for rental.

Provide Good Selection of Machines

With good market intelligence you understand your market – You know what machines are in demand, by whom and when. Make those machines available for rent and keep them ready to go. Well-maintained machines with visible service records assure customers they won’t have any problems on the job.

Offer Great Customer Service

Make accurate cost estimates so customers can plan their budgets. Advise on the best machine for the application. Provide on-time delivery and a scheduled time for pickup. Make sure the equipment will perform well for your customer. If there is a mechanical problem or other need for assistance, respond quickly.

Keep Customers Coming Back

Don’t forget. When a customer has a good experience renting from your dealership they will keep coming back. Create a short customer feedback survey on their rental experience for them to fill out. Let them know their opinion matters.

The popularity of equipment rental isn’t going away any time soon. Make the moves you need to grow your share of the rental market.

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