|
While Rowand’s relationship with his rental company isn’t perfect, he continues to work with them because they have the largest inventory and deliver on time. “We work with what you might call the Wal-Mart of rental companies, and although we usually give them a week’s notice, sometimes I call the day of and they have what I need,” he says. There when you need it. R & D employees ensure that their equipment arrives in good working condition by personally picking it up and using a rental checklist before it leaves the yard. “If they deliver it to you, then you’re at their mercy,” Rowand says. “So we inspect it, note any damage, check the oil level and fuel level and test it to make sure it’s running properly. That system has helped us out immensely over the years. “Probably 60 percent of the time, there is something wrong with the equipment when we go to pick it up. The equipment is not checked out properly.” Because Rowand has an established relationship with his dealer, they’ve come to expect the extra scrutiny. “They understand our process, and don’t just think we’re difficult.” Heaviland has even negotiated with his dealer to allow him to keep equipment on site for free when he’s not using it. “We’ll keep it for five days, but they’ll only charge us for three days, if we call it off during the days that we’re not using it,” he says. Gary Mallory, CEO of Heads Up Landscape Contractors in Albuquerque, N.M., says it’s important to have a company culture of using equipment efficiently. “Like a war battalion with a tank, crews love having equipment on site, just in case something comes up,” he says with a laugh. “Foster a culture of returning equipment immediately. If you have four to five pieces of equipment out and you don’t need them, in this economy it can bite you.” Mallory also tries to rent a single, multipurpose piece of equipment rather than three separate pieces, and warns landscapers to beware of extra fees. “Watch out for hidden costs like delivery charges, environmental fees and wear and tear costs.” Lawn and landscape companies should be strategic about what kind of equipment they decide to rent, says Darin Zuccaro, owner of Yardscapes in New Port Richey, Fla. “The two main items we rent for installs are front loaders and sod cutters,” he says. “Because the sod cutters are always breaking down, it’s more efficient for me to rent them, because the dealer fixes them and I don’t have to wait a week.” Doing the math can be tricky, he says, but it’s an essential part of bidding a job right and managing your costs effectively. “It can go the opposite way, too,” he says. “If a job takes longer, you could end up paying the higher daily rate.” To avoid needless rentals, Mallory sometimes barters with other contractors. “If we’re doing re-vegetative seeding, we have to rip up the ground,” he says. “Yet if another contractor is on site creating a parking lot, they can rip it up for us using equipment they have. And vice versa, we’ll also sometimes dig trenches for electricians.” Zuccaro preps his crews to do as much as they can by hand before they rent equipment. “Be smart – only rent when you need it,” he says. “ Renting vs. owning Renting equipment can actually be more cost-effective for lawn and landscape companies than buying it – even if it’s something they already own. “Ironically, most of the stuff that we rent are pieces of equipment we already have, like sod cutters,” Rowand says. “For instance, if we have three crews that are doing sod cuts on a busy day and we only have one sod cutter, we’ll rent two.” When deciding to buy instead of rent, make sure the equipment isn’t just going to sit. “A lot of people in our industry love seeing steel in their yard, but they really have to look at purchasing equipment unemotionally,” Mallory says. “I know people that own 12 skid loaders, but only need them for three months out of the year. That’s not wise. “The truth is that many companies own too much equipment, and don’t rent often enough.” On the other hand, Mallory says companies should also make sure they maintain their equipment so it doesn’t go down unexpectedly, resulting in an unplanned rental. “If you’re not able to invest in your equipment, you could end up being forced to rent,” he says. Owners should also treat rentals on a case-by-case basis. “You can have minimal downtime if you rent, but the landscaper has to be smart enough to know when to use it,” says Zuccaro.
|
Explore the August 2011 Issue
Check out more from this issue and find your next story to read.
Latest from Lawn & Landscape
- Sgro named Yanmar Compact Equipment's North American president
- Aphix acquires Curb Appeal Landscaping in Birmingham
- Project EverGreen helps revitalize Milan Park in Detroit
- Trex Company wins Product of the Year, Judges’ Choice Winner at Environment+Energy Leader Awards
- General Equipment & Supplies in Fargo adds Takeuchi equipment
- Mariani Premier Group acquires Hazeltine Nurseries
- EnP Investments adds Mark McCarel as Northeast territory sales manager
- Our April issue is now live
