Growth in the Spring

Feb. 1, 1999
I recently rented a Peter Sellers movie called Being There. He plays a simple-minded gardener named Chance who, through strange twists of fate, becomes

I recently rented a Peter Sellers movie called Being There. He plays a simple-minded gardener named Chance who, through strange twists of fate, becomes a trusted adviser to the president of the United States. While Chance remains the simple and innocent gardener he's always been, everyone else in the movie believes him to be a cultured man of the world who has great wisdom and insights about human, political and economic issues.

At one point in the film, the concerned president asks Chance what he thinks the future will bring. Chance thinks for a moment, and then responds as only a gardener could. "There will be growth in the spring," he quietly states. Not knowing Chance is talking about plants, the president interprets this reply to be a positive and encouraging vision of the country's economic condition.

I relate the story of this movie because it seems our industry often seeks a "Chance the Gardener" who will tell us that it's OK to be optimistic about the future. That despite consolidation, the global economy, increased competition and changing market demographics, there will still be growth in the spring.

The movie Being There has dozens of meanings, but one of its themes was especially clear to me: It's important to rely less on what people tell us about the future and more on our own ability to turn challenges into opportunities.

It really doesn't matter whether someone predicts there will or won't be growth in the spring. What matters is that we focus on opportunity instead of security. As a manufacturer, the ability to focus on new opportunities is critical to our success. Unless we constantly try to do something beyond what we've already mastered, we'll never grow. The same is true in any business.

So whether you're building equipment or renting it, it seems to me the problem in the immediate future will be not the lack of opportunities for the really motivated, but the lack of motivated people ready and able to take adva ntage of the opportunities.

This said, here are some opportunities that exist for anyone in the equipment rental industry - from locally owned stores to multi-location chains, from manufacturers to distributors:

Service sells As competition increases, the one thing that will ultimately differentiate you from your competitors is customer service. Rental companies that find a way to make this a real and tangible part of their business - rather than just a lofty cliche - will earn the kind of customer loyalty that helps a business grow and succeed. It's a matter of focusing totally on the customer.

Raising the service standards of your business is something that requires the everyday involvement of your entire organization. It's a big challenge, but it's an ever bigger opportunity you can capitalize on immediately.

Teach your customers I believe the rental industry has an enormous opportunity to educate its customers. Every time your employees interact with a customer, they have a golden opportunity to teach the benefits of doing business with you instead of your competitors. For example:

* Explain to your customer the inherent benefits of the brand he's renting and why you've chosen this particular high-quality machine to put into your rental fleet.

* Demonstrate ways for your customer to save money or to get his work done more quickly.

* Inform the customer about all the ways your company will help him have a hassle-free rental experience.

* Advise your customer about new ideas, opportunities or products that might help him grow his business, or make his work a little easier.

* Inquire about the customer's level of satisfaction with your business.

Ask for suggestions on how to improve your service.

The list goes on and on. Just remember that a good teacher is a good leader. Today's consumers are looking for a strong sense of commitment from you and your employees. It's simply a matter of being knowledgeable about your products and services. Being available. Being firm and clear. And being truthful.

Act now I once heard Ed Malzahn, the founder and president of The Charles Machine Works Inc., tell a group of engineers that "nothing will ever get started if all possible objections must be overcome first."

Obviously, there are risks and costs to any new plan or program. But most of the time, they are far less than the long-range risk of doing nothing. That's why, to stay ahead of your competitors, you must not only act, but act now.

Go ahead and put into motion any ideas - big or small - that can give your business a competitive edge. Maybe it's simply a goal to learn more about your market. Maybe it's getting to know your customers better. Or improving your quality-control processes. Or implementing a more aggressive advertising effort. Or devising a plan to get more business from existing customers. Or creating methods for empowering your employees at every single point of customer contact. Just go ahead and take the first step.

A lot of people have ideas, but few decide to do something about them now. Opportunities exist now. The successful entrepreneur is a doer, not a dreamer.

Relationship-building Many times companies focus on beating the competition, rather than nurturing the customer. This inevitably leads to doing the wrong things for the wrong reasons. Instead, you should ask your customers the right questions, which in turn will help you focus on the right issues.

There's nothing fancy or sophisticated about the process of building relationships with your customers. For the most part, it's a matter of going into the field and pressing the flesh, talking less and listening more. Consider trying what I call "The 10 Be's" for building quality customer relationships:

1. Be dependable.

2. Be knowledgeable about your company's resources.

3. Be knowledgeable about your customer's business.

4. Be honest.

5. Be a problem-solver, not a problem-maker.

6. Be proactive and show initiative.

7. Be friends with your customers.

8. Be enthusiastic.

9. Be perceptive.

10. Be yourself.

Also keep in mind that you and your team should focus on developing relationships with not only the owners of the companies you do business with, but also their managers, foremen and operators as well. Much of this is just pure common sense. But, unfortunately, common sense is what we often overlook in our relationships with one another.

If you didn't notice, the four opportunities I identified above form the acronym STAR - Serve, Teach, Act and Relate. This is appropriate because the stars have always been a symbol for unlimited potential.

Right now, our industry has more opportunities than we can act upon. When we imagine the possibilities, our vision expands, we capture opportunities, and we create the future.

So will there be growth in the spring? I believe the answer to this question is something we each have the ability to determine for ourselves.

To subscribe: Call us at 800/543-4116 or 310/317-4522, ext. 480. Sub-scriptions are free to qualified rental professionals and are available at $75 a year (U.S.) to others.

Fax to 310/317-9533.

Mail your request to RER Customer Service, P.O. Box 8987, Malibu, CA 90287-8987.

RER back issues (except special issues) are available at $7 per copy; Calif. residents add 8.25%. Visit our Web site for our archive of available back issues, or call for more information.

To change your address: Please send your new and previous address to RER, P.O. Box 16748, North Hollywood, CA 91615-6748.

Special Issues and Products

The RER Rate Guide features hundreds of types of construction, industrial and homeowner equipment, complete with suggested rental rates.

RER Reports is the industry's only weekly fax newsletter. Faxed directly to you every Monday morning, you'll receive breaking news and information, equipment classifieds and the latest economic indicators.

The RER 100 (May 1998 issue) features a wealth of information on the rental industry and the top 100 rental companies, including rank by rental revenue, officers, total volume and locations.

The RER Buyers' Guide contains a complete listing of products, manufacturers, distributors and suppliers for the equipment rental industry.

The 1999 Equipment Rental Industry Consolidation Report contains the most comprehensive summary and analysis available of all the major consolidation activity in the equipment rental industry.

RER P.O. Box 8987 Malibu, CA 90265-8987 800/543-4116 310/317-4522, ext. 480 fax: 310/317-9533 www.rermag.com www.equipexpo.com