Like most rental stores, Grant’s Rental in Bridgewater, MA has experienced several changes over the last decade. Chief among them, according to company owner Brian Grant, involve three mainstays of his business: equipment, rates, and utilization.
Social Media is Not Always So Social for Indiana Rental Company
Maryland Rental Company Serves an Unusual Market with Usual Challenges
Tennessee Rental Company Supplies Equipment to Ease Customers' Labor Shortage
“We reevaluated and sold off some equipment like our slice seeders, which typically are in high demand. But they are awkward for customers to use and their belts, blades and chain are high maintenance for us,” said Grant. “Under-performing equipment has suffered the same fate as we strive to keep our time utilization for equipment at 60 percent.
“Tier 4 has been a struggle," he continued. "Equipment with Tier 4 engines has seen a price increase of roughly 30 percent, yet our annual rate increase has not exceeded five percent over the last several years. We are taking three-year notes on equipment in anticipation of having no payments for two years, but we seem to be experiencing higher maintenance costs. I’m unsure if it’s a quality or customer issue.
“For our lawn and garden equipment we now promote a two-hour rate and are booking some equipment three times a day," he continued. "This has increased revenue and, yes, maintenance costs, but we are still profitable. Our counter people do a good job tracking the rentals, but from time-to-time we overbook and have a breakdown issue. We’ve also introduced a new 24-hour rate, which, too, has helped generate more daily store traffic.
Grant indicated the company has also increased delivery rates, added personnel to its yard and shop operation, and improved communication with customers to ensure daily rental items are returned promptly, as scheduled.
In business since 1986, Grant’s Rental also sustains a healthy party and events operation, which represents approximately 30 percent of the company’s annual revenue.
“Through our busy season - June through August - canopies, tables and chairs continue to have an 80-percent utilization,” he noted. “Food and fun machines also do well then, although we have downsized to two inflatables/moonwalks. Cleaning, storage, and delivery of them have all become more of an issue over time."
