CED

October 2014

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October 2014 | Construction Equipment Distribution | www.cedmag.com | 55 Rental service calls have been more respon- sive than a typical rental company. In addition to the machine owners' mechanics, Yard Club also has access to a network of third-party mechanics if needed. Insurance is handled similarly to a traditional rental operation. "We're most proud that almost all of our new customers come to us via a referral," said Evran. "This gives us an indication that things are working. It helps create this Yard Club community where owners know one another, respect each other and treat each other's equipment with care." Specialized Equipment is a Unique Niche Yard Club is also providing access to machines that typically aren't rented through traditional channels, such as scrapers, large dozers and specialized pieces like a Shuttle Buggy. Being able to find unique pieces of equip- ment is a benefit, and the fact that it increases the overall utilization for those machines might be a plus for a dealership's equipment sales. "For specialized equipment, I think we are giving end-users access to a new supply channel, so from that perspective I don't think we pose any threat to dealerships," explained Evran. "Our mission is trying to put millions of dollars back into the hands of contrac- tors and give them a lot more certainty that they will be able to manage their business effectively. We want to help companies better utilize their assets." Yard Club has been in talks with dealers about including a Yard Club membership with an equipment purchase. "We'd love to guarantee a customer a certain level of utilization from their machine," added Evran. Yard Club could also potentially fill a need for additional inventory among rental fleets, and this is something the company is currently experimenting with. So far the biggest challenge for Yard Club has been getting contractors to try the service. Of those who have tried it, there is a 100 percent repeat order rate. Yard Club customers tend to own mid-size to large fleets ($5 million to $50 million) and many are involved in highway/heavy construction and pipeline. The Yard Club website boasts a $200 million inventory and Evran says they are able to fill orders approxi- mately 80-85 percent of the time. It was just within the last month that Yard Club added the option to rent equipment with an operator. According to Evran, rentals with operators benefit both equipment renters and owners. Owners get the security of having their own personnel on the machine. They can also offer qualified operators steadier employment, instead of losing them to another company when times are slow. For renters, an operator that knows the machine will be able to get more productivity out of it. Being able to access an operator as well as a machine might also allow a contractor to bid on different types of jobs with more confidence. JOANNE COSTIN is a freelance writer and marketing consultant focusing on the construc- tion industry. She can be reached at (847) 358-1413 or jcostin@costincustom.com. ADVERTISERS' INDEX Association of Equipment Management Professionals . . . . . 48 BidSpotter.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 BOKF Equipment Finance Inc. . . . . . . . . . . . . . . . . . . . . . . . 41 DIS Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 EPG Insurance, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Glynn General Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 11 Hydrema Exports A/S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Infor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Knapheide Manufacturing Company, The . . . . . . . . . . . . . . 53 Leading Edge Attachments . . . . . . . . . . . . . . . . . . . . . . . . . 27 LiuGong Construction Machinery . . . . . . . . . . . . . . . . . . . . 44 PFW Systems Corporation . . . . . . . . . . . . . . . . . . . Cover Wrap Pierce-Pacific Manufacturing Co. Inc. . . . . . . . . . . . . . . . . . 23 PriSim Business War Games, Inc. . . . . . . . . . . . . . . . . . . . . . 15 Ritchie Bros. Auctioneers . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SANY Heavy Industry Co., LTD . . . . . . . . . . . . . . . . . . . . . . IFC Sentry Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Sullivan-Palatek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IBC Terex Construction Americas . . . . . . . . . . . . . . . . . . . . . . . . 46 Unified Purchasing Group . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Wells Fargo Equipment Finance . . . . . . . . . . . . . . . . . . . . . . . 9 XAPT Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OBC As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2013 by Associated Equipment Distribu- tors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate — $39 per year for members; $79 per year for nonmembers. Office of publication: 600 W. 22nd St., Suite 220, Oak Brook, Ill. Phone: 630-574-0650. Periodicals postage at Hinsdale, Ill. 60521 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 600 W. 22nd St., Suite 220, Oak Brook, Ill. 60523 ("Who and What Are Shaking Up the Rental Model" continued from page 27)

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