Running an equipment rental business takes hard work and dedication just like any other business. However, there are several unique requirements to become successful and profitable. Unlike some other industries, renting large equipment, like tractors, excavators, and backhoes, comes with financial and physical risks to the customer.
To build a profitable equipment rental business, you’ll need to account for several factors unique to your business.
Here’s a list of five tips to get started.
1. Use auxiliary hydraulics
If you’re renting excavators, you’ll get more customers with auxiliary hydraulics. This will give your excavators the ability to perform optimally with heavy-duty attachments. For instance, the following attachments require auxiliary hydraulics:
· Excavator grapple. This attachment has jaws that aid in loading and sorting.
· Hydraulic thumb. This attachment helps with sorting through debris.
· Hydraulic breakers and hammers. These attachments make it easy to demolish concrete fast.
Having auxiliary hydraulics can be a deal-breaker for many customers who need the above attachments. If you don’t have the right equipment, those customers will go to the first business they find that has what they need.
You don’t need to get new equipment to get auxiliary hydraulics. If you’ve already got a fleet of excavators, you can get conversion kits and diverters for your existing equipment. From there, you can get the heavy-duty attachments you know your customers want. Combined with high-quality, leak-free couplers, offering heavy-duty attachments will help you get more business.
2. Market using die-cut cards
Whether it’s a die-cut business card or cardstock flyer, you’ll capture more attention when your marketing materials are shaped like a piece of equipment. People will immediately know what your business is about when they see your card or flyer.
Since die-cut materials cost more than standard materials, be intentional with your marketing efforts. Don’t just hand them out to everyone. Hand them out to people who are most likely to use your services.
For instance, leave a stack of die-cut business cards on your service counter so your customers can take a card when they leave. You can also pin them to community bulletin boards in rural areas where most people are likely to need equipment for private projects.
3. Create a business listing on Google
Having a Google business listing is essential. Most people will search online for equipment rentals, and having a business listing will help them find you even if you don’t have a website. In fact, many local businesses rely on their Google business listing for customers because it’s easier than competing for keywords in the search engines.
With a little optimization, your business listing will show up on the first page of Google’s search results high above the organic search results. This makes it easy to capture customers before they start scrolling down the page.
If you don’t see much traffic from your business listing, it’s probably not optimized or you need more positive reviews to establish a basic level of trust. It might be slow at first, but with enough positive reviews, you’ll get more clicks from your Google business listing.
4. Publish videos to social media
Video marketing is one of the best ways to market your equipment rental business. Start a YouTube channel and post videos about topics related to the equipment you rent or the projects people work on with your equipment. If you can create interesting content, you’ll build an audience and increase your brand awareness.
Publish your videos to Twitter, Facebook, Instagram, and any other social media network you use.
5. Allow your customers to inspect the equipment
Some consumers will know exactly what to look for in equipment, so make sure you allow them to inspect your machinery. Some customers will want to inspect machines for mechanical, hydraulic, or structural issues. They’ll also want to inspect the tires, check the fluids, and inspect the cab. Always create a transparent and honest experience for your customers.
If you’re going to advertise your equipment as high-quality, allow your customers to verify that your services live up to that claim.
Before you reach maximum profitability, consider scaling
There will come a time when you’ll max out your profitability with your current operations, so consider scaling your business. Rather than being the owner-operator, consider building additional locations and either hiring others to manage your business or selling them as franchises.
The less you have to work, the more free time you’ll have to continue expanding your business, start new projects, or spend time with friends and family.