There was a time in the not-to-distant past when Waterloo, IA was synonymous with the name John Deere. But that’s changed dramatically over the years and since 1997, when Vern Snitker opened Allstate Rentals, the city has welcomed even more diversification.
“Today, we have telemarketing, advertising/media, distribution centers, and more in addition to John Deere, said the store president and owner. “We also have many smaller farm communities nearby, within 20, 30, and 40 miles, that generate rental sales for us.”
Hence, his store targets a wide variety of homeowner and professional customers. “Our weekends are busy with farmers and other DIYers undertaking building and remodeling projects, said Snitker, who was a Navy diesel and hydraulic mechanic. “The majority of our business, though, comes from area contractors who work on construction projects.
“One of our contractor customers, for example, installs grain bins and pole barns for farmers. He’s been busy most of the late summer and fall and anticipates there’s another 50 or so pole barns yet to be built. His work generates rental sales for auger systems, compactors, and Bomag rollers, among other items and equipment in our store.
“High-reach equipment, power buggies, and mini excavators are also in demand for the contractor and commercial market, whereas tillers, power rakes, log splitters and Toro Dingos with a variety of attachments are popular with homeowners.”
Snitker said he’s optimistic about 2019. Fall rental sales were strong and customers seem to be optimistic. “Even an area manufacturer executive isn’t overly concerned about rising steel prices,” he remarked. “Instead, he told me he’s taking a wait-and-see attitude and so are we.”
This store owner is not anxious about competition from big national companies. He noted those in the area do a good job, but primarily target larger contractors who are not his customers. Labor, he mentioned, is always a challenge and technology and innovation will keep large and small rental store owners alike on their toes, from keeping up with the latest equipment on the market to how they can best repair it. The latter is less of a challenge for Allstate. Three of its seven employees, including the owner, are comfortable in the repair shop, one reason why the store also offers repair services to customers.
“You have to stay up with technology,” added Snitker. “I’ve never missed an ARA show and always look for innovations and improvements there. For the coming show, I’m especially interested in new ways to help customers reduce their exposure to silica.”
He’s also leveraging technology to reduce repair costs, by shopping around for better deals on replacement parts. The key to continued growth for 2019, Snitker emphasized, has less to do with competition, costs or innovation, and more to do with service and being able to stay on top of it for all his customers.
