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The Birth of Rental
Although fragments already existed, the rental industry was born in that era of boundless optimism that was post-World War II America. People were moving around the country, looking for new opportunities and it was in that era of movement that the fast growth of trailer rentals took hold. After that, as young families built new lives and bought new homes, the do-it-yourself fix-up trend took hold and the initial customer base for tool and equipment rentals was the homeowner market as well as the small contractors that were building homes, offices, bridges and roads all across America.
According to legend, the beginning of rental was during The Great Depression. Although similar things probably happened in other places around the same time, one story is that legendary rental pioneer Same Greenberg, was trying to sell trucks when a guy came up to him and said, “I need a truck for a day, can I use that truck for $5?” Greenberg said, “We haven’t see $5 for a while here. Sure we’ll rent you the truck,” and the idea was born to keep renting trucks since they weren’t selling.
Others say rental dates back to the 1890s in the French Quarter in New Orleans where companies would rent china and other party equipment.
Houston-based F.W. Gartner Co. opened for business in March 1923 as a construction distribution center. As the Gartners told RER 50 years later, in 1929 they couldn’t pay for a shipment of equipment, the suppliers couldn’t afford to ship it back to the factory and the contractors had no money to buy it with. So the Gartners began renting to bring in money to pay the manufacturer and discovered it was a good business.
In the early days of rental, it was wide-open and experimental. There were no formulas, standards or guidebooks, no established ways of doing things, no metrics to measure by, no operating systems, no rules of thumb. People in different parts of the country were developing their own rental business styles and they began to meet and talk and compare notes. People shared ideas and tips, not worried that their fellow entrepreneurs might come in one day and compete against them and use the information against them.
A young publishing entrepreneur named Jim Gartland recognized the potential of rental and devoted two years to studying the market before launching National Rental Yard Register in Oct. 1957. He painstakingly combed through hundreds of telephone directories to compile the magazine’s first mailing list.
The magazine was the first of its kind and quickly took hold. Just beginning around the same time was the American Association of Rental Operations, which later became the American Rental Association. National Rental Yard Register, later shortened to Rental Yard Register and then Rental Equipment Register, became its official publication, helping the association serve its membership and provide a voice for ideas to be exchanged and information passed on to this growing group of entrepreneurs.
The magazine provided an opportunity for rental people to share best practices, to learn about greater professionalism, image, efficiencies and systems.
In the 1950s and ’60s, “We Rent Almost Anything” seemed to be the mantra for the emerging equipment rental market. One of the principal selling points of the industry was making the general public aware of the rental concept, the fact that almost any tool or piece of equipment could be rented. In-depth analysis about whether individual items were profitable was no widespread. The primary target was the homeowner. The typical rental center rented tools and equipment as well as camping equipment, home healthcare supplies (commonly known as “sickroom” supplies), party items (commonly called “soft goods”) as well as appliances such as televisions, which were popular rental items. Even furniture, refrigerators, washing machines and rollaway beds made their way into a lot of rental centers, and baby care items, such as cribs, were popular as well.
Most rental companies were family-owned and the term “mom-and-pop” operation was accurate.
Sept. ’57
On Sept. 25, 1957, nine black students entered Little Rock Central High School under the protection of 1,000 members of the 101st Airborne Division of the United States Army.
Oct. ’57
The first issue of National Rental Yard Register is published and mailed to 4,000 rental dealers. Publisher/editor Jim Gartland obtains names of 4,000 rental businesses by searching through telephone directories from around the country and writing the addresses by hand. The magazine is published monthly beginning Jan. 1958.
1957
The first large scale American nuclear power plant goes into operation in Shippensport, Pa., in 1957 and will service Pittsburgh.
1957
In 1957, Berry Gordy Jr. invests $700 to found “Motown Records.”
Oct. ’57
Bill Grasse, co-owner of Acme Rents, begins RenTopics column, which would continue for 40 years, believed to be the longest-running column in the history of business journalism. The first issue profiles Acme Rents, founded in the 1930s by Grasse’s father Palmer Grasse as Acme Truck Rentals. When World War II broke out, obtaining tools became almost impossible. Palmer Grasse set out across the United States buying up used tools wherever he could find them to develop the rental business, eventually sold to sons Bill, Bob and Don, and daughter Peggy.
1957
Elvis Presley’s draft notice arrives in Dec. 1957. In early 1958 Elvis is inducted into the U.S. Army at the Memphis Draft Board. Pvt. Presley goes to Fort Hood, Texas, for basic training and is stationed there for six months.
1958
In 1958, Bill Grasse’ RenTopics columns become popular, usually written in the form of questions rental readers would send in with Grasse’s well-researched answer. An early sample:
Q: Many pieces of our equipment must stand out in the weather. Have you run across any simple plan or idea to keep this equipment dry?
A: Oh Yes! Take a truck inner tube. Cut around the middle on the inside, then cut in pieces 12” to 14” in length. These pieces will cover most of the small equipment. You will find they are shaped like an umbrella.
Jan. ’58
American Associated Rental Operators president Leonard Hawk announces it is making National Rental Yard Register its official publication.
Feb. ’58
Jim Gartland writes about how to assess the value of a rental business for a possible sale, a topic still written about and discussed in 2007.
Dr. Zhivago is published in the U.S. in 1958. Banned in the USSR, Dr. Zhivago won author Boris Pasternak the Nobel Prize, which he was forced to decline due to political forces at home.
Feb. ’58
AARO holds third annual convention in Denver.
Feb. ’58
On Feb. 3, 1958, Alaska is admitted to statehood, followed by Hawaii on Aug. 21.
1958
The 64-color assortment of Crayola crayons (with the built-in sharpener) debuts in 1958.
1958
In 1958, Crest toothpaste inaugurates the "Look, Ma! No cavities!" ad campaign.
April ’58
Gartland writes about the openness of rental center owners in regard to sharing information: “They honestly and frankly speak to each other. Divulging information and practices that will help the other firm. The reasoning behind this might be obvious, but briefly it is because rental men know that the future of this infant industry lies with the success of each individual rental firm. They know and sincerely believe that the more conscious the public becomes of rental services and facilities, the better off each will be in the years to come.
“It is a commendable characteristic and has proven its value in the birthplace of rentals.”
1958
Sweet n' Low is introduced as an artificial Sweetener, using saccharin instead of sugar. Sweet'N Low received U.S. trademark patent No. 1,000,000 in 1958.
1958
In 1958 Harry Winston, Inc. donates the 45.52-carat Hope Diamond to the Smithsonian Institution.
July ’58
Thief who stole more than $20,000 worth of equipment from Southern California rental yards is apprehended.
1958
The price of 1st class U.S. postage is raised in 1958 to 4 cents from 3 cents where it had been for 26 years.
1958
The first domestic jet-airline passenger service is begun in 1958 by National Airlines between New York City and Miami.
1958
Rental center owners were lobbying telephone companies for a listing in the category of rental — tools and equipment — rather than be part of dozens of vague sub-classifications.
1958
In 1958, Richard P. Knerr and Arthur K. Melin, of Wham-O, manufactured a plastic hoop in a variety of bright colors called the Hula-Hoop.
1958
Modern consumer credit is born in 1958. The American Express Company introduces a charge card meant to compete with the successful Diners Club card. The Bank of America introduces the BankAmericard, which will become the Visa card.
Dec. ’58
Dec. 28, 1958 issue of Life magazine features Sam Greenberg and his Sam’s U-Drive rental center in Van Nuys, Calif. Panoramic photo shows 38 people and 29 different types of equipment, showing scope of this new industry. Feature was focused on the do-it-yourself home repair trend helping fuel the growth of young rental industry.
1959
The American Football League (AFL) is formed with eight teams in 1959. In 1966, it merged with the NFL.
1959
In 1959, Oklahoma repeals its 51-year-old Prohibition law leaving Mississippi the only "dry" state in America.
Feb. ’59
The national business publication Changing Times, published by the Kiplinger organization, writes about the growing rental business.
Feb. ’59
The day the music died. A plane crash kills singers Buddy Holly, Ritchie Valens and J.P. Richardson (The Big Bopper) on Feb 3, 1959.
1959
Vince Lombardi signs on to coach Green Bay Packers in 1959, a job he would hold until 1968. Lombardi took the losing Packers to winning back-to-back NFL titles in 1961 and 1962, and Super Bowls I and II in 1966 and 1967.
March ’59
Rich Lanoha, Denver, Colo., is elected AARO president.
April ’59
Gartland speaks out against rate wars. “I have heard other rental men say the rate will be what the traffic will bear! It is surprising, and rather alarming, to hear this statement, for these men are letting their customers run their business by setting rental rates. True every business must be competitive and, by and large, customers do, by their purchasing power, direct price of sale items.
“The rental business is somewhat different and no rental owner in his right mind will alter carefully considered rates based on their costs and maintenance because a customer will not pay a specified amount.”
1959
The Barbie doll is invented in 1959 by Ruth Handler (co-founder of Mattel), whose own daughter was called Barbara. Barbie was introduced to the world at the American Toy Fair in New York City.
1959
In 1959, Lee Petty wins the first Daytona 500 auto race.
April ’59
RYR survey reveals 28 percent of customers are contractor, 63 percent homeowner, 9 percent retail sales.
1959
The Boston Celtics win over Minneapolis Lakers in the 1959 NBA championship. It is Boston's 8th consecutive NBA championship.
1959
The Los Angeles Dodgers beat the Chicago White Sox, 4 games to 2 in 56th World Series in 1959. The White Sox have taken their first pennant since the "Black Sox" scandal of 1919. It is also the first time a World Series game played west of St Louis.
Nov. ’59
Thousands attend grand opening of New Mexico Equipment Co. in Albuquerque.
1959
The aluminum beer can is introduced by Coors of Golden, Colo., in 1959.
1959
Bonanza and The Twilight Zone debut on television in 1959.
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