How to Use Rental Equipment to Grow Your Business
How to Use Rental Equipment to Grow Your Business
Rental equipment can be a great boon for your business, regardless of whether you’re the renter or seller. If you have an equipment rental business or want to start an equipment rental business, there are several ways to increase revenue and establish yourself as a reliable, ethical distributor.
Providing high-quality service is key, but knowing how to do that successfully can be a challenge. The good news is, it doesn’t have to be.
Different Ways You Can Utilize Rental Equipment
When it comes to how to start a rental business, there are several things you need to figure out, both about your company and industry as well as your potential clientele. Once you’re in business, you’ll have to focus on keeping it running, which is best done by staying on top of industry news and consumer needs — plus how your company relates to both.
Here are five simple ways to use rental equipment to grow your business:
1. Sell Yourself Well
Marketing is everything, and successful advertising can mean the difference between an increase in business or the need to close your operation altogether. Therefore, it’s advisable to prioritize marketing since that’s how you’ll be spreading the word about your company. Investing in top-quality marketing solutions will allow you to secure a pool of renters.
Advertising your rental equipment is the best way to gain new customers. Focus on the equipment’s benefits as well as its advantages for the customer. Not all clients will understand that renting can be a better and more cost-effective option than buying outright, so your advertising needs to alert them to that reality.
2. Keep Your Rival Companies Close
Every industry faces competition, and it can get daunting to find new ways to convince people why your company is better than others. The best way to do that is to keep track of what your competitors are doing — what sort of equipment they offer, where they advertise and what, if any, promotions they provide. You don’t need to mimic what they’re doing, but understanding the competition helps you pin down your unique offerings and decide how to best market your business.
3. Avoid Keeping Secrets
Transparency about your equipment is a little-known trick — after all, who expects honesty in advertising? Being upfront and open about your machinery establishes your expertise while building your reputation as a knowledgeable and ethical distributor. Simple things like allowing potential clients to inspect your equipment before renting it and being upfront about the contract — avoiding dreaded “hidden” costs — can go a long way.
4. Put Yourself in Their Shoes
Understanding the job your clients need to do is a good way to help them pick the right equipment. Ask them questions and learn what the task is and what needs to be done. Then, suggest the machines that would work best. Showing expertise and interest in the business will cement your reputation as a knowledgeable and reliable distributor who genuinely cares about the clients. Both of these qualities are great ways to establish dedicated clients who will provide repeat business.
5. Share Your Knowledge
Rental equipment often requires experience and practice. Because not all skills are transferable, it could be a boon to your business to offer lessons on how to operate the equipment you’re renting out. This setup provides the bonus of clients being assured that they’ll be able to handle the machinery. Additionally, you can rest easy knowing your machines won’t be returned in unfavorable conditions.
Benefits of Using Rental Equipment
When you’re a business, renting out your equipment for projects can bring you many benefits. You can establish working relationships with other businesses by offering specialized machinery that would otherwise be less accessible — most often due to cost. You can also build a reputation for offering high-quality, unique and reliable machines. There are several other benefits to renting out equipment that you should consider.
Here are five common advantages of renting out equipment:
1. Higher Profit Margin
The biggest benefit of renting out your equipment is that the machinery will eventually pay for itself. Once the initial investment is paid off, the money you make renting it out becomes pure profit, which you can use to maintain or upgrade your equipment, expand your business or invest in more specialized machines.
2. Precise and Unique Machinery
Because certain projects will require more elaborate or unique machinery, you can easily broaden your prospective clientele by stocking specialized equipment. Because these machines are used less often, buying specialized machinery is often uneconomical for most companies. Providing this equipment at a fraction of the cost — to be used as often as the client needs — can be a boon to your company and reputation.
3. Latest Technology
Effective rental business solutions are key for reliable distributors, which is why your company should have a wide selection of machinery equipped with the latest technology. Working with the most up-to-date technology gives businesses a competitive edge and allows them to take advantage of expensive equipment at a lower cost.
The advanced technology and the guidance it provides businesses will allow them to also see what areas can use some improvement.
4. Increased Business Growth
Renting out construction equipment also lets you offer additional related services. Offering courses to teach clients how to handle your equipment is an excellent way to do this, as is offering setup or installation.
As you discover more about what your clients need, you can grow your business accordingly and become a one-stop shop for all your consumers’ needs.
5. Solidified Reputation
Since your equipment belongs to you and your clients are paying good money to rent it, it’s your job to keep it in tip-top condition. Investing in maintenance will end up paying for itself because you’ll establish yourself as a reputed supplier of top-tier equipment in excellent condition. This will inevitably help strengthen the relationships you have with your clients.
Instead of just buying equipment and walking away, customers who rent from you will have the advantage of talking to you and benefiting from your expertise, which will help ensure they return to you. Plus, they’re more likely to spread the word about your exceptional service, providing more potential customers and encouraging your business to flourish.
Optimize Rental Equipment by Becoming a Member of AED
Take advantage of high-quality products and services crafted to improve your company by becoming a member of Associated Equipment Distributors (AED). We offer members access to webinars, professional development, research, advocacy and events — all at a reduced rate. Everything AED provides is designed to enhance your business’s ongoing success and profits.
Consider becoming a member of AED today and get in on the industry-specific goods we offer.