Partner Interview
Published December 18, 2023
Ashtead, Herc, & United Rentals: Equipment Rental Market Growth Prospects
inpractise.com/articles/ashtead-herc-uri-sunbelt-heavy-equipment-rental-market-growth-prospects
Executive Bio
Former CEO of Nickell Rental
Interview Transcript
Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.
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Apart from the pricing dynamic you just described, what other aspects do you think these companies handle poorly when it comes to the DIY customer?
They primarily operate through outside sales representatives who are usually heavily commissioned. If I have to choose between renting out a skid steer for a weekend or for a three-month contract to a contractor on a job site, even at a much lower rate, I would consider which one impacts my paycheck more. Which one contributes more to the store's bottom line? Which one helps us achieve our goals? It's difficult to cater to short-term, smaller rentals, and smaller contract values when there are attractive large job sites and big customers. You'd prefer to cater to the large job site, rather than the weekend warrior or the landscape contractor who only does $5,000 a year with you and is sometimes slow to pay because they handle their own billing. You'd rather have the plumber who does $250,000 a year with you. So, it's not that they don't want to serve smaller customers, it's just that they're a secondary priority to a broker company like that.
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