5 More Ways to Strengthen Your Rental Company

There are many ways to strengthen and help differentiate your rental company from competitors. Last month I discussed a few ideas, but since there is so much opportunity to excel here, I wanted to continue.

Here are a few thoughts, opinions and reminders to consider.

Consider product and services diversification. Start thinking now (the sooner the better) about all the possibilities to increase income and to position your company for the future in an increasingly changing business environment. What I’m not going to do, however, is tell you that a specific avenue is right for everyone. Whether it’s expanding your rental fleet to include other specialties or delving into rental-adjacent or even completely new areas, there are lots of opportunities to look at. Keep in mind that every rental company is different and their market, competition (and opportunities) are radically different. 

However, I feel it is not wise to stray too far from what you and your team know. Many rental companies may not have the proper processes, procedures, training, or facilities to handle the new equipment or services additions. The unintended consequences might be more detrimental than helpful. Adding new major offerings without the proper due diligence could be a very unwise investment. With that said, major product and service diversification (done properly) can provide the catalyst to significantly increase growth and profitability.

Major product and service diversification (done properly) can provide the catalyst to significantly increase growth and profitability.

Consider customer type diversification. Even though this topic can be considered part of diversifying products and services, another form of differentiation involves the possible expansion of the types of customers rental companies typically target. Think about your community, and who does and doesn’t currently rent from you. Using a fishing analogy, consider casting a larger net.  

Consider consolidation. It might be wise to entertain the possibility that parts of your current business may not make sense going forward. Perhaps one or more of your product lines or services might be holding you back by draining valuable financial, space and labor resources. It may be time to strategically eliminate these unprofitable and now unnecessary portions of your business. 

Be careful not to make any of these big decisions too quickly. Get objective advice from an experienced equipment rental consultant. In these increasingly challenging business climate times, your time and the capital needed (to make sizable changes in one’s operation) are precious commodities that must be used more wisely than ever.

Develop and use a structured training program that is personalized for your company’s needs. Customers like doing business with rental companies that have employees who know what they are talking about. Having a better educated staff leads to more repeat customers and greater profitability. Remember, a “learn as they go” approach is not a program—it’s a recipe for employees being unprepared to maximize daily opportunities to make the company much more revenue and profits.

Ensure that your employees are educated on all types of equipment in your inventory; it helps them to become better solutions providers. Undereducated employees are not likely to ask the appropriate questions to match the customer’s need with the correct equipment. Also, undereducated employees are not going to have the knowledge to advise customers on the proper “do’s and don’ts” when operating the equipment. I have observed far too many employees in rental companies only know the names of the rental items and are in dire need of more education dealing with proper job applications, proper use, accessories, and all of the other valuable information that customers desperately need. In addition to having this knowledge, it is vital that your staff are highly trained to dispense this knowledge to customers in proper fashion. For example, employees should be taught to emphasize the benefits of the equipment being discussed not just the features.

Emphasize customer service. Of course, one of the categories with some of the largest potential to strengthen and differentiate one’s rental company deals with developing an even stronger culture of having the best customer relationship practices. Be the company that consistently treats customers with the most patience, kindness and respect—and is by far the finest in the art of consultation salesmanship.