When Dan Domey, general manager for Eastern Oregon Rental and Sales in Baker City, OR, was asked what the key to survival in his market is, he answered with one word: “retail.”
“A typical rental store probably generates 90 percent of its revenue from rental sales and the other 10 percent from retail sales," he said. "Our stores are about 50/50. Borrowing a cliché, the mix makes us a one-stop shop and helps to even out our cash flow during the slower rental seasons.”
Eastern Oregon Rental and Sales has three rental locations in eastern Oregon and one retail store in neighboring Washington. On the rental side, the stores rent everything from large earthmoving equipment like excavators and dozers to sewer snakes and paint sprayers. Said Domey, “We rent to DIYers and other homeowners, nearly every size contractor, and even the commercial market.” The stores also carry a sizeable inventory of party and events goods.
On the retail side, Domey divides the store’s inventory into five categories, concrete tools and accessories, pipes and accessories, hardscape materials, stucco, and Hilti and Husqvarna tools for the general contractor.
Another word the general manager might use to help explain survival strategies is "diversity.’‘
“Our stores are not located in large metropolitan areas where contractors and subcontractors would likely be constructing huge housing developments and dealing with stores that specialize in renting dozers, excavators, aerial lifts, and other equipment used primarily in the housing market. When our phones ring, a customer might very well ask about renting a large piece of iron. Or he or she may be inquiring about a pressure washer, hand grinder, or even a barbeque grill or PA system.”
Still another word is “service,” he added. “It probably goes without saying, but stores that over promise and under deliver have a lower survival rate than stores that rent and sell top quality equipment, keep it maintained, and excel in providing excellent service.”
Domey said the latter, along with strong retail sales and a diverse customer mix, will help Eastern Oregon Rental and Sales take advantage of economic trends that look to remain very favorable for the next two or three years.
