The Rental Game is Now a Match of Wits
December 2009 Construction Equipment Distribution www.cedmag.com 33 Rental whole new group of contractors for whom rental makes sense. Cash constraints with third party leasing or funding have hurt the distributor's sales, noted Chris Pera, president of HiReach Group, based in King of Prussia, Pa. The rental busi-ness is a terrific alternative because the customer doesn't need the credit. What You should Be Doing Now This has been a stressful and demanding time for a lot of dealers, said Don Buttrey, president of Sales Professional Training, Inc. But now it's time to go back to the war room and sit around the table and come up with some new strategies. There is no denying that the market has changed, so your market position and strategy need to be re-evaluated to determine if they are still right for your business. In addition, dealers need to assess the importance of rental to their overall strategy and adjust resources accord-ingly. Your flexibility in adjusting your strategy to market conditions may be a key factor in achieving success coming out of this recession. Every market is different, and according to Buttrey, dealers need to examine their own competitive situa-tion and identify what their particular advantage is. Prospect those types of customers that best fit your strategy. Competition is fierce in the rental market, and you need to differentiate yourself from your competition. Know what you do and leverage what you have to your advantage, added Buttrey. Pera launched Hi-Reach Equipment in May of 2009, so he doesn't have many of the same problems and obligations of other dealers, who have had to adjust inventory and personnel when demand dropped off the table. He sees advantages in his narrow niche. The company rents JLG lifting equipment, including rough-terrain scissor lifts, articulated booms, tele-scopic booms, 4 x 4 telehandlers, elec-tric scissor lifts and industrial cranes. Having such a narrow view makes it so much easier and comfortable for the sales reps, explained Pera. Users are clearly defined. Our product only applies to a certain group of folks. Defining a market niche is nothing new for Volvo Rents, either. The franchise arm of Volvo Construction Equipment North America has its eye clearly focused on the 10 percent of customers who account for 80 percent of the volume. Volvo Rents has chosen a franchise model based on its belief in the concept of local ownership. With local ownership you can tailor your service offering to each and every customer, said Nick (continued on page 36) HiReach Group rents JLG lifting equipment in the King of Prussia, Pa. area. Since launching in May of 2009, the company has been successfully prospecting new accounts to grow their business. With a tight marketing budget, Volvo Rents has turned to attention-getting public relations. Volvo Rents stores are painting their machinery with the color of their chosen charity and donating a percentage of that machine's rentals to the charity. Another PR campaign, the company's Hard Hat Comedy Tour, has provided comic relief to-out-of-work construction workers 17 performances thus far. Attendees must donate three cans of food to attend.