The Machine May Not Be the Real Issue

A request for equipment may begin with a machine, rate or delivery date. Brownie Foster explains why understanding the pressure behind that request matters.

Why Rental Rates Have Stayed Flat

Rental rates have stayed flat or gone backward because our industry has trained customers to believe that equipment is a commodity and price is all that matters.
Equipment costs more. Parts cost more. Labor, insurance, transportation and maintenance all cost more. Yet too many companies are still afraid to ask for a rate that reflects those increases.
Why?
Because we are more afraid of an idle machine than an unprofitable rental.
Salespeople are pressured to “get it on rent,” so they discount before they ever explain the value of their equipment, service or team. Every time we immediately lower a rate, we teach the customer that our first price was not real.
If you believe in your equipment, your mechanics, your drivers and your service team, then you must believe they are worth more than the cheapest rate in town.
The lowest rate does not always save the customer money. Reliable equipment, on-time delivery and fast service keep the job moving. Downtime costs far more than a few extra dollars on the rental rate.
The rental industry does not just have a pricing problem.
It has a confidence problem.
Stop apologizing for the rate. Explain the value, stand behind your team and ask for what your service is worth.

CCN Takeaway

Equipment needs often reflect a larger jobsite issue—production, access, scheduling or downtime. Listening for that context helps rental professionals understand what the customer is actually trying to accomplish.

Credit

Shared with permission from Brownie Foster, Market Vice President at Opifex-Synergy Equipment Rentals and author of Million Dollar Days in the Construction Rental Equipment Business.

View Brownie Foster’s original post on LinkedIn.⁠

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