November Podcast Digs Into Rental Realities
Hear the lively discussion covering rental fleet replenishment challenges, labor retention and even some predictions about winter auctions. While equipment shortages continue, what are the biggest pain points from a rental perspective? Is anyone letting go of low-hour machines from their rental fleets these days? Jarrett Harris, director of Cyclicals Research, OTR, rejoins host Kim Phelan for a Part 2 dialogue about the present markets and their supply chains––and what it all means for IEDA equipment dealers. There might not be answers yet, but Jarrett’s insights will help you see the bigger picture and think strategically for 2022. CLICK HERE to hear the conversation.
Taxes That Can Hurt You
By Garry Bartecki I had the privilege to make a presentation with my Dealer, Rental, and Equipment team for IEDA in September. It was similar to what we did for the MHW One-Day Dealer Conference two years ago. With the new proposed tax law and the remaining ways to get government funding, we had plenty to cover in 60 minutes. I made my presentation regarding the state of the never-ending moving target of the economy, the COVID-19 impact, interest rates, the inflation/deflation possibility, supply chain issues, and let us not forget China because when China sneezes the rest of us catch a cold. And I am sure you can add to the list if you stop to think about it. There was one sobering fact I heard from the former head of the Dallas Fed who stated that his review of the supply chain issue and the inability of U.S. ports of entry to manage the flow, along with conversations with port authorities and union leaders leads him to surmise that it will take another two years before things get back to normal. Not good news if a major portion of your inventories come in by boat from another country. READ FULL STORY
The State of the Construction Equipment Economy
Report Excerpt: Biggest Business Challenges for Equipment Owners We asked what equipment owners felt were the biggest challenges they are facing today. It is not surprising, considering how many challenges equipment owners face, that most selected more than one issue they consider to be a top concern. The biggest challenge cited was aligning equipment management goals with preconstruction and operational goals. Disposing of assets at the right time was a close second. READ FULL CONSTRUCTION REPORT
Third Quarter in Review
For the first time since Q1 2020, all of the average rental rates increased. Seven of the ten equipment types experienced quarter-over-quarter weekly rental rate increases between one and two percent. Only crawler mounted hydraulic excavators saw an increase of less than one percent (increasing 0.48% quarter-over-quarter) and both single drum vibratory compactors and crawler mounted compact excavators saw increases above three percent. This quarter’s rate increases are in stark contrast to one year ago, when in Q3 2020 all daily and weekly rates (and nearly all monthly rates) decreased. READ FULL REPORT
How to Reduce Your Business Risk with In-House Financing
By Andrew Paulson | Triton Capital Uncertainty has become the norm since the global pandemic and, unfortunately, the pain of supply chain and labor shortages is likely to continue for the foreseeable future. As a result, everyone is focused on reducing their business risk. For equipment dealers that means meeting sales quotas and ensuring positive cash flow. For customers, that means maintaining business operations and minimizing cash outflow. As an equipment dealer, you can help lower business risk for both yourself and your customers simply by offering in-house financing. The concept of in-house financing isn’t new. Car dealers have long offered customers the option to get financing on-site. However, in-house financing is taking on increasing popularity with the more recent Buy Now Pay Later (BNPL) trend that’s proliferating across e-commerce. These days it seems you can finance virtually anything on the spot – without the hassle or stress that you’ve probably experienced at a car dealer. Businesses and their customers have good reasons for embracing financing. Similarly, in-house financing offers a number of benefits that help lower business risk for both equipment dealers and their customers. READ FULL STORY
The Get-Real Factor. Your Service Builds or Destroys Your Business
By Jeffrey Gitomer Customers don’t make up stories about you or your business – it is you who creates them. The customer simply retells them. How the story is told, and what the content is, is up to you. It’s based on your actions or reactions, combined with their interpretations and perceptions. These stories create the basis for the most powerful form of advertising known to mankind. Word-of-mouth. It is estimated that more than 50% of American business is based on this ad form. When people ask each other for a referral, or a business reference it’s given based on their past personal experience or what they “heard” from others. Other stories. Here’s an example: “Hey Jeffrey, you fly all the time. I’m going to Dallas. What airlines should I fly?” Three options will occur. You will either get… 1. A referral: USAir is the greatest. 2. Nothing: Well, I dunno, they’re all about the same. 3. A reverse referral: Anyone BUT USAir. Here’s an example of the whisper down the lane version: “Hey Bill, I’m going to Dallas. Do you know which airlines I should fly?” Three options will occur. You will either get… 1. A referral: “You know Sally, my friend Jeffrey says USAir is the greatest, and he flies all the time.” 2. Nothing: “Well, I dunno, they’re all about the same.” 3. A reverse referral: I’ve heard all kinds of bad stories about USAir. I’d say, pick anyone but them. NOTE WELL. If the experience was good, the customer may not proactively say something, but if the experience was bad, you can bet your last dollar they’ll bring up the story in the first 5 minutes of a conversation and depending on the severity of the displeasure, sometimes in the first 5 seconds. This lesson of customer service is the most real (and valuable) I have found. First, because it shows how one front line person can speak volumes for a multi-billion-dollar company by creating an experience worth talking about. Certainly more powerful than a bunch of rhetorical ads on TV, most of which are so plastic they should be accompanied by vomit bags. READ FULL STORY