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Every day, equipment rental companies help builders, contractors and homeowners get the job done — and propane helps them do it. From towable generators and forklifts to space heaters, marketers can connect with local rental companies to showcase propane’s benefits and the business potential of becoming a refueling and cylinder sales site.
The Rental Service Market:
The rental service market includes companies that rent tools and small- to medium-sized equipment, primarily to contractors and builders but also to homeowners for DIY home construction and maintenance. Equipment is rented year-round from companies ranging in size from local service companies to large corporate rental service providers with many divisions. Some rental companies have hundreds of thousands of pieces of equipment, while others specialize in a few specific products. In 2021, the construction equipment rental market was valued at $118 billion, and is expected to reach $180 billion by 2027, presenting potentially significant growth opportunities for propane marketers who leverage their services.
Whether a project is big or small, construction costs add up quickly. Contractors and other construction professionals rent equipment to help lower fixed costs, reduce the financial risks of owning and maintaining equipment, minimize the size of their equipment fleet, and avoid purchasing situational tools or pieces of equipment they would rarely use. Renting equipment also saves time and money for the contractor because the rental companies bear the responsibility for all regulatory compliance, maintenance, and repairs.
Propane’s Benefits in the Rental Service Market:
Propane is synergistic with the needs of the rental companies and their customers. Propane already fuels many tools and equipment from generators, heating, and small engines across a wide range of market segments and applications, making their integration into a rental company’s inventory straightforward.
Propane’s economic and environmental benefits are even more attractive to rental companies given the large scale of their operations and the responsibility that comes with managing so much equipment. Propane equipment often has less capital costs, requires less maintenance, and can significantly reduce fuel expenditure compared to gasoline and diesel.
The clean energy of propane is another benefit for both renters and their customers. Propane offers much lower emissions than diesel which benefits contractors working in areas with stringent air quality control measures or indoor projects. Renting equipment also encourages more sustainable business practices through the consistent reuse of the equipment, which adds up to significant carbon reductions.
Build Connections:
The best way for propane marketers to build relationships with rental services is to leverage their existing business relationships. If a marketer is already providing propane to construction professionals through power, heat, or lighting solutions, they can continue to build on those relationships to form strategic partnerships.
Propane marketers should identify audiences including roofers, contractors and concrete finishers in their area and how they can serve those needs and focus messaging to make it more effective.
A cost-effective way to distribute this messaging is through websites and social media. Whether its sharing customer testimonials or sharing informational content, active websites perform better in search rankings, increasing reach. Web content supplemented with videos performs the best. Sharing new content on social media is another great way to reach target audiences.
In addition to messaging new audiences, propane marketers should communicate with existing customers as well. Studies have shown companies are up to 14 times more likely to sell something to an existing customer than a new one. Reaching out to past customers, especially if they’ve been inactive, might be all it takes to encourage repeat business.
In-person networking events should also be considered. Bringing together current customers, rental companies that serve their target markets, and equipment providers with an open house, helps them find opportunities to complement their needs and abilities. If rental service companies see what propane has to offer and see the interest from trades customers, they will be more interested in offering propane equipment.
Conclusion:
The rental service market represents a great opportunity for the propane industry and marketers. Partnering with rental houses provides customers with reliable, clean, efficient propane power solutions and ensures customers get the dependable energy they need. Learn how rental houses, like Ohio Temporary Heating and Air and Evergreen Mobile Power, are already benefitting themselves and their customers by providing propane solutions.
Learn more about the benefits of propane construction equipment at propane.com
