*The Independent Variable

Aug. 1, 2000
They are the bread and butter of the rental industry. The independent contractors from Anytown, USA, who walk into your rental center, know exactly what

They are the bread and butter of the rental industry. The independent contractors from Anytown, USA, who walk into your rental center, know exactly what kind of equipment to get and how to use it and drive off in their pickup trucks with rentals lasting for days or several months. They rent all year long, in the summer and in winter, anytime people's lawns need prepping or floors need sanding.

Independent contractors look to their local rental centers to provide them the equipment on time, at a good rate and to give them product training if necessary. They also go to their local rental stores to get replacement parts and accessories or to simply check out the latest products.

These contractors have established a rental relationship with you for some time now, but how certain are you of their loyalty? Do you have what it takes to keep them coming back, or do you risk losing their business to the guy down the block or the nearest hardware superstore? If you think offering contractors the cheapest deals in town has locked in their business, think again.

Service with a smile Jay Wedeking, owner of J.J. The Handyman in Columbia, S.C., says that 90 percent of the time he rents from Thompson's Grand Rental because of its location. Thompson's is located about a mile from his house; the competition is about 8 miles away.

"I primarily use just one rental center because it is centrally located. His prices are good, and he has the equipment I need in stock," Wedeking says. "Once in a while I would go to another location if they don't have it, if it's an odd piece or for seasonal items."

Wedeking, like most small contractors, rents equipment to supplement what he owns. For instance, he owns a pressure washer but rents a $1,000 attachment to increase its effectiveness. Because he needs the attachment only a few times in a year, Wedeking says he is better off renting it for about $15 a day.

"Rates play a part about 50 percent of the time, based on the job I'm doing," he says. "If I'm doing a job where I have given the customer a price and a piece of equipment will make the job more efficient, the rates will make a difference because it is coming out of my pocket."

But price is not the only factor that contractors look for in a rental center. Outstanding customer service dictates where independent contractors go, and so do supplemental equipment such as self-storage units, trucks and trailers for rent, and the availability of used equipment.

"The personality of the staff plays a big part," Wedeking says. "The equipment has got to be number one, but when you're looking at everything being equal, as far as the equipment, maintenance and price, the staff makes a whole world of difference. If they smile at you and they call you by name, it does make a difference."

He adds, "Because we're in a small town, if they don't have a piece of equipment, they will call the other centers to ask if they carry what I'm looking for."

Deliver the goods Dave Overbeek, general manager of New Mech, Sioux Falls, S.D., also factors in service when he deals with rental companies. New Mech, which has another location in St. Paul, Minn., is one of biggest mechanical contractors in the area and specializes in industrial, sheet metal and spiro pipe fabrication and project design. New Mech has a regular account with Rental Service in Sioux Falls.

"I try to stick with one company so I can get to know them. So far, I deal mostly with one unless they don't have the equipment I'm looking for," Overbeek says. "The first thing I consider is the rental rate, if it's very competitive, but the main thing is the service."

Overbeek recalls a time when Rental Service Corp. came through for him when the company he normally worked with refused to go the distance. "I needed a portable welder, and I dealt with another company in town," he says. "I told them the work site was far and high up on a roof. The first company told me I had to pay extra for the lead, but I think they just didn't want to do it. So I called RSC - they told me they could have the welder up there, they brought more lead and didn't charge me extra."

Rental companies also need timely delivery to impress independent contractors. Time is of the essence in the contracting world, in which a contractor gets paid only when the job is done. According to Overbeek, RSC can deliver equipment within 30 minutes locally, and if it can't, it is flexible with a machine's drop-off time. "Once I rented equipment from them just before the weekend, but they couldn't deliver it until that Friday night," Overbeek says. "I had the machine for a whole weekend, and they didn't charge me extra."

Another satisfied RSC customer is Jimmy Barton, general superintendent of ABUCK Construction in Smyrna, Ga. "Most of the time I deal with RSC because they have good service and good prices," Barton says. "I once had a subcontractor who was supposed to furnish me with a lift, but they didn't have it. So I called RSC, and from the time I called to the time they unloaded the equipment, it took 15 minutes. Most companies usually need more time, so I was surprised they got it."

The extra effort often pays off with increased utilization. And contractors say they have forged solid friendships with rental personnel.

"Do I get perks doing business with them? They get perks instead of giving them away," Wedeking says. "I've given them tickets to the ballgame for their staff or the owner's family because they help me maintain the level of quality in my business. There's nothing worse than getting out to someone's home, and your equipment doesn't work."