Five Ways Rental Center Cashes in on Bobcat Equipment
Tim Pounds knows the profit-producing potential of his Bobcat loader, excavators and attachments.
Tim Pounds, who owns Croft Rental, Inc., Kansas City, Kan., knows what it takes to make money in the rental business. After all, he grew up helping in his father’s rental store and has been working full-time in the business for more than 30 years. One line of rental equipment that makes money is his line of Bobcat® loaders and excavators.
Croft Rental has offered Bobcat compact equipment since the early 1980s. His current Bobcat fleet includes an MT50 mini track loader; five skid-steer loaders (two S130s, an S150, an S185 and an S250); three excavators (322, 325 and 430) and several attachments (augers, buckets, hydraulic breakers and pallet forks).
“Bobcat equipment has been a good line for us,” Pounds says. “They’ve always made money for us, sometimes double what we paid for them.” He points out the different ways Bobcat loaders and excavators generate money for his rental business:
1. A good return on investment
For most of his equipment, Pounds considers a return on investment of 30 to 50 percent a reasonably good payoff. His Bobcat equipment, he reports, consistently has returned about 60 to 70 percent on his investment.
2. Strong demand
Small contractors represent about 70 percent of Croft Rental’s business. Homeowners, many of whom have acreage or small farms, make up most of the rest.
“We don’t have any problems renting our Bobcat loaders or excavators,” he says.
During the spring, it’s not unusual for all nine of his Bobcat machines to be out on rental at the same time. “Even then, we may have people waiting to rent a machine when it comes back,” Pounds says. “That puts a smile on my face.”
When the construction season slows in the middle of December, his Bobcat equipment continues to go out the door. Customers may rent at least two of his loaders and two of his excavators on any given day in the winter.
3. Attractive resale value
Pounds replaces his well-maintained Bobcat machines every three to four years after they’ve accumulated about 1,200 to no more than 2,000 hours. Selling the equipment quickly and for a decent price isn’t a problem, he notes. “There’s always a contractor looking for a good used Bobcat loader or excavator.”
4. Reliable performance
Pounds reports few breakdowns with his Bobcat equipment. “I’ve seen how Bobcat machines are made in the factory and the quality that’s built into them,” he says. “They’re just an all-around good machine.”
5. Strong dealer support
Prompt service from his dealer, KC Bobcat, Olathe, Kan., adds to the money-making abilities of his Bobcat equipment. Minimizing the time needed to get parts or solve a repair problem, Pounds says, plays a key role in maintaining the productivity and profitability of his Bobcat machines.
Making money, however, isn’t the only source of Pounds’ satisfaction. Being able to serve his customers well also plays a part. “I like the variety of different people we meet in our business and helping them solve whatever problems they face in order to complete a project.”
Backed by the power, speed and versatility of his fleet of Bobcat loaders and excavators, Pounds is ready to do just that.
Flexible Financing Fits His Needs
When Tim Pounds, owner of Croft Rental, finances his purchase of Bobcat® loaders and excavators, he prefers using Ingersoll-Rand Financial Services (IRFS), a division of CitiCapital Commercial Corporation, available through his Bobcat dealer. This approach offers more financing flexibility than a bank, he reports.
“Usually, a bank will offer you one plan and interest rate,” he says. “With IRFS I can choose from several options, including one-, two- and three-year payment plans to best fit my needs at the time.”