It's Survival of the Fittest for Independents

it's potentially dangerous to the health of your company to not prepare now for the national giants becoming much hungrier, and less particular about the type of customers they seek.

Dick Detmer

I thought I’d follow up on Editor Jenny Lescohier’s column in last month’s issue of this magazine, which reported on a panel discussion where industry veteran Dan Kaplan predicted the soon-to-be extinction of independent rental businesses. Jenny stated her disagreement with his position and I certainly agree with her view. I believe there will always be a need for independent rental companies in many or most markets, for several reasons.

To begin with, independents are often much more focused on the local community. They also tend to be more nimble and since they are a lot less “corporate," they can often adapt more quickly to the changing needs of their customers. Their “independence” from the large corporate culture has advantages that help to partially offset the enormous, obvious advantages the large national companies enjoy. 

I'm not suggesting we take the big national companies lightly; it’s not wise to underestimate one’s competitors. These giant companies are getting much more of a voracious appetite for greater total income – often including the independents' relatively meager “bread and butter." In my opinion, there are many independent business owners who are still thinking the giants will continue to be satisfied with their usual diet of “big iron” (and big commercial and industrial customers). But it's potentially dangerous to the health of your company to not prepare now for the national giants becoming much hungrier, and less particular about the type of customers they seek. I believe their appetite will grow, not diminish, as they feed – and they will become more assertive in wanting the business from your customers.

Eat or be eaten

Independent rental companies need to become even hungrier for more business. They should also nurture the innovation that being hungry often brings. Part of that innovative spirit should revolve around strengthening the customer’s awareness of the benefits of renting from an independent rental business. Another aspect of innovation could include offering products and services that might be outside the giants' offerings.

It would be nice if there could be harmony and helpfulness in the relationship between all of the competitors in the communities that these rental companies serve. One never wants to bash their competitors and getting along usually has some nice benefits.

Sometimes change can bring great opportunities. I have seen several examples of small rental businesses seizing huge opportunities in the wake of big competitors that left the market area for greener pastures. Some independents might look forward to a time when a large national competitor decides to leave their community because the market is not a large enough revenue generator. This is possible and has happened, but because of the financial strength of the large national companies, it doesn’t happen very often. So, the point is, don’t count on this happening in your community.

It's very important to not just stand by and wait to see what happens. Once you see what happens, it's often too late to do anything about it. It's best to be proactive by strengthening your business now. 

Stay strong

There are many different ways to strengthen a rental company’s foothold in the market area. Of course, the ones best suited to a company’s particular need depends on a wide variety of factors. Here are just a few examples that could be a good fit for almost all independently owned rental businesses:

  • Promote management education, as it's almost always needed and remains a great investment when it's properly planned and implemented.
  • Prepare your entire staff to really excel in the area of customer relations, rental salesmanship and efficiency. Some independent rental businesses are not as dominant in these areas as they think.
  • Use the latest and best forms of advertising to promote more business. It’s important that independent rental companies become more skilled in getting their message out.

Finally, don’t become complacent. The giants have certain advantages, but being an independent has certain advantages too. As long as business owners continue to adapt to changes and are committed to excellence, there will continue to be a strong need for independently owned and operated rental companies.

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