Why The Tool, Party & Equipment Rental Business is Booming. Location & Inventory Tips for Success
Holmes Publications
August 18, 2009
www.nation-widerental.com
Nationwide General Rental Centers provides a solid business opportunity for entrepreneurs of all ages and backgrounds. Its turnkey programs help owners succeed. – Hanna Aronovick
Not just for business veterans, Ike Goodvin says the equipment rental business is attracting a younger entrepreneur. The owner of Georgia based Nation-Wide General Rental Centers (NGRC) Inc. says the typical business owner used to be over 50 years old, but now people in their 20´s are joining the business. "More homeowners and contractors are renting equipment than ever before," Goodvin says. "The industry has been growing at about 20 percent annually for the last 40 years. There is lots of demand, and we are seeing growth in the general contractor and homeowner market. However, the party market is the fastest-growing segment."
The main challenge, Goodvin notes, is finding the correct location for a new NGRC center. The company conducts a free on-site evaluation and analysis for each owner to determine the best location.
"The freestanding buildings may be unavailable or too expensive in the desired location" he explains. "So many owners start in a strip center and move in three or four years to build their own 6,000 to 10,000 square-foot freestanding facility."
Different regions have different equipment rental needs and NGRC customizes the equipment package to fit the needs of each market. "Rental inventory is the key to success and if we provide them with a piece of equipment that doesn´t get rented, we give them a refund. This assures the owner that we don´t just want to sell equipment but we want to make sure their center has the right equipment for the right job."
NGRC purchases new equipment every year; Goodvin says this is essential to ensuring each location has leading-edge, high-quality, high performance equipment. A customized program helps owners identify what type of equipment they need, as well as when it´s time to purchase new equipment. "This helps owners save money on maintenance and allows maximum utilization of each piece of equipment" he says. "It also means we are always providing dependable equipment to our customers."
In addition to equipment, NGRC supplies accessories and other products used in conjunction with the equipment. "We´re a one-stop shop," Goodvin says. "Many of our stores also offer truck and trailer rental, and small engine tune-ups and repairs. In certain markets, we will offer delivery services, too."
NGRC is not a franchise, "and no franchise fee and no royalties mean´s more profit for each center at the end of the year," Goodvin says. Owners have a variety of backgrounds from professional individuals to those who desire to own their own business, "It´s nice if owners have a mechanical background but it´s not necessary," he notes.
The company provides a complete turn-key program. "From securing an exclusive area to 100 percent financing for growth inventory, we do the business plan and go to the banks for the owners, " Goodvin explains.
Owners within the same market will work together on advertising initiatives and refer customers to other NGRCs when necessary. "The owners have good relationships with each other because they don´t infringe on each other´s markets," he says.
"I get feedback from new owners and receive satisfaction form hearing about the pride they have in their business," he continues. "The rental center business provides a service to the owner´s community with the opportunity for security and profitability. This industry is one that lends itself to having the whole family getting involved. We provide a low –stress total package to get the owners started, but it´s up to them to put in the effort and reap the rewards."
Goodvin says equipment rental is one of the fastest growing industries. There is no discounting in the business so their relationship with competitors is friendly.
"It´s a stable business" he notes. "We don´t fight the competition to offer lower prices. We all have similar rates. There are not coupons or sales. It´s all straightforward pricing.
The rental industry has "one of the lowest mortality rates," Goodvin says. "You seldom see a rental center for sale and there must be a good reason."
He attributes most of the unsuccessful stores to over purchasing and not maintaining the equipment. "But if the owners follow our programs they won´t overbuy and will have a schedule for maintenance on all the equipment," he says. Equipment rental business is the type of business that stays in the family."
Goodvin says NGRC plans to grow at a rate where personal relationships can still be maintained. "We want to personally know each NGRC owner and we do not want to lose that on-on-one relationship," he states.
"The company is growing and has grown every year." "We´ve been in business for over 30 years and I think we´ll be around for another 30," he says.
www.nation-widerental.com
Nationwide General Rental Centers provides a solid business opportunity for entrepreneurs of all ages and backgrounds. Its turnkey programs help owners succeed. – Hanna Aronovick
Not just for business veterans, Ike Goodvin says the equipment rental business is attracting a younger entrepreneur. The owner of Georgia based Nation-Wide General Rental Centers (NGRC) Inc. says the typical business owner used to be over 50 years old, but now people in their 20´s are joining the business. "More homeowners and contractors are renting equipment than ever before," Goodvin says. "The industry has been growing at about 20 percent annually for the last 40 years. There is lots of demand, and we are seeing growth in the general contractor and homeowner market. However, the party market is the fastest-growing segment."
The main challenge, Goodvin notes, is finding the correct location for a new NGRC center. The company conducts a free on-site evaluation and analysis for each owner to determine the best location.
"The freestanding buildings may be unavailable or too expensive in the desired location" he explains. "So many owners start in a strip center and move in three or four years to build their own 6,000 to 10,000 square-foot freestanding facility."
Different regions have different equipment rental needs and NGRC customizes the equipment package to fit the needs of each market. "Rental inventory is the key to success and if we provide them with a piece of equipment that doesn´t get rented, we give them a refund. This assures the owner that we don´t just want to sell equipment but we want to make sure their center has the right equipment for the right job."
NGRC purchases new equipment every year; Goodvin says this is essential to ensuring each location has leading-edge, high-quality, high performance equipment. A customized program helps owners identify what type of equipment they need, as well as when it´s time to purchase new equipment. "This helps owners save money on maintenance and allows maximum utilization of each piece of equipment" he says. "It also means we are always providing dependable equipment to our customers."
In addition to equipment, NGRC supplies accessories and other products used in conjunction with the equipment. "We´re a one-stop shop," Goodvin says. "Many of our stores also offer truck and trailer rental, and small engine tune-ups and repairs. In certain markets, we will offer delivery services, too."
NGRC is not a franchise, "and no franchise fee and no royalties mean´s more profit for each center at the end of the year," Goodvin says. Owners have a variety of backgrounds from professional individuals to those who desire to own their own business, "It´s nice if owners have a mechanical background but it´s not necessary," he notes.
The company provides a complete turn-key program. "From securing an exclusive area to 100 percent financing for growth inventory, we do the business plan and go to the banks for the owners, " Goodvin explains.
Owners within the same market will work together on advertising initiatives and refer customers to other NGRCs when necessary. "The owners have good relationships with each other because they don´t infringe on each other´s markets," he says.
"I get feedback from new owners and receive satisfaction form hearing about the pride they have in their business," he continues. "The rental center business provides a service to the owner´s community with the opportunity for security and profitability. This industry is one that lends itself to having the whole family getting involved. We provide a low –stress total package to get the owners started, but it´s up to them to put in the effort and reap the rewards."
Goodvin says equipment rental is one of the fastest growing industries. There is no discounting in the business so their relationship with competitors is friendly.
"It´s a stable business" he notes. "We don´t fight the competition to offer lower prices. We all have similar rates. There are not coupons or sales. It´s all straightforward pricing.
The rental industry has "one of the lowest mortality rates," Goodvin says. "You seldom see a rental center for sale and there must be a good reason."
He attributes most of the unsuccessful stores to over purchasing and not maintaining the equipment. "But if the owners follow our programs they won´t overbuy and will have a schedule for maintenance on all the equipment," he says. Equipment rental business is the type of business that stays in the family."
Goodvin says NGRC plans to grow at a rate where personal relationships can still be maintained. "We want to personally know each NGRC owner and we do not want to lose that on-on-one relationship," he states.
"The company is growing and has grown every year." "We´ve been in business for over 30 years and I think we´ll be around for another 30," he says.
www.nation-widerental.com
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