More co-ordination for rental success

Bob Carlstedt , managing director of consultant Ducker Worldwide’s Chinese operation, said a study into Chinese rental companies and equipment dealers revealed greater co-ordination between the two groups was required.

Speaking at the International Rental Conference Asia in Shanghai, China, on 24 November, Mr Carlstedt said that among the core issues which the study raised were concerns over addressing debt chains that build up from customers renting equipment.

Mr Carlstedt said the two essential factors for the industry remained the quality and durability of machines and other equipment, with the latest study’s results showing that dealers believed the provision of OEM parts is of core importance.

Other issues that were flagged up from the investigation included concerns over product delivery and availability, with Western China in particular experiencing challenges on this issue.

Rental companies also raised the issue of warranty claims, feeling that they were often caught up between customers and dealers in respect of claims that are made.

Opportunities

Mr Carlstedt said, “The key point which came out of the study is that there are opportunities for dealerships to better support the rental market and likewise for rental companies to support dealers.

“I think that rental companies recognise their issues with cash flow and they are asking for help on how to handle that in terms of improving trade –in values of equipment.”

He added that the survey revealed there was “a relatively good alignment” between rental companies’ needs and the dealers’ service offering.

However, the research found that rental companies would like more assistance with selling their customers the features and benefits of specific products, beyond general marketing promotional material that offered basic information.

It also emerged that smaller and medium-sized companies needed a greater level of overall sales and repair training as a key driver to improve their business.

The one-day IRC conference took place on 24 November at the Double Tree Hilton hotel in Shanghai, China. The event was attended by 280 industry executives.

www.khl-group.com/events/irc