The rental of refuse trucks continues to grow for many reasons beyond crisis management. Whether it is leveraging rentals for growth or consistency and reduction in maintenance costs, it can be a smart way to best manage your fleet.
By Zach Martin
Last June 2018, Waste Advantage Magazine published the editorial piece on “Rent is No Longer a ‘Four Letter’ Word in Waste Management”.1 In this article, the author addressed the outdated stigma around renting refuse trucks and divulged the components that a company should evaluate when considering your own system of fleet management. Whether you are a hard-working independent hauler or part of a larger business or municipality running on efficiency, there are long-term effects to rental that can help set up your future.
Renting as a solution goes beyond crisis management. Using truck rentals allows you to customize your business plan both ahead of time and in real time. The ability to respond and react to circumstances within a few days’ notice does add value to rental offerings, however, it is the strategic integration of this approach into the overall company landscape that is how industry leaders—and your competitors—are making larger strides.
Match Business Volume
You need a truck now, but you also need the capital. This is a costly decision you do not want to rush. Renting provides the opportunity to start using a truck immediately while you strategically conserve capital for other plans. Or maybe your company does not want to spend capital on a truck that may become less vital down the road? In that case, rent for when you need it, and return it when you do not.
Bolster Growth
Keep the option of growth on the table. Do not let truck availability control your capacity to bid on new opportunities for your business. Take control into your own hands in order to meet your business needs. Renting allows you to initiate a new contract route immediately, without the typical six to nine-month lead time on securing brand new waste hauling vehicles. If you need it now, that is when you will get it. Business growth can happen suddenly, before you are truly ready. There are trucks to buy, trucks to maintain or upgrade, and strategic decisions to make. Keeping your business stocked with a top-of-the-line rental fleet buys you time to make expensive, long-term decisions judiciously.
Make Future Plans
Renting provides the company with predictable and consistent costs from month-to-month. You can count on your budget to stay true and start making long-term plans with the capital you are holding onto.
Selecting a rental company is as an important a decision as your equipment. Support network, terms and conditions could either set you up for success or create additional unforeseen challenges. You will want to ask these questions when making a decision:
• Equipment—What is the age of the truck I am renting? Performance, image and reliability are key when renting a truck, so a young fleet age is important.
• Support—What is the rental company’s relationship with manufacturers and what local support is available should the truck have an issue? A good rental company will have strategic partnerships that will allow you to get service quickly and reliably.
• Terms and Conditions—What is the transportation cost for both delivery and return? These costs can be hidden and you should ask for it upfront. How is the condition of the vehicle tracked and what are my responsibilities? It is important that there is transparency in the process to avoid surprises.Are there mileage and hourly limits on the trucks and how is it factored into the cost of rental? This will be important in order to compare apples to apples.
The Smartest Way to Manage Your Fleet
The rental of refuse trucks continues to grow for many reasons beyond crisis management. Whether it is leveraging rental for growth or consistency and reduction in maintenance costs, truck rentals can be a smart way to best manage your fleet. Consider how long you will be needing to use the truck when deciding whether to rent, purchase, rent to purchase, or retire an older spare and replace with a rental. This time frame and asset use can help you solve the math problem behind: Is this truck rental right for me? Once you have decided rental is right, consider a company that is reputable, has a large network of support, new or like new equipment, and is transparent throughout the process. | WA
Zach Martin is Vice President of Sales, North America for Big Truck Rental (Tampa, FL). Zach joined Big Truck Rental in December 2016 and is responsible for all sales in U.S. and Canada. Prior to Big Truck Rental, Zach had a 13-year career in sales, business development and sales leadership for Rehrig Pacific Company. Zach also serves the National Waste & Recycling Association as Past Co-Chair of the Future Industry Leaders Alliance and on the Supplier Board of Governors. He can be reached at (304) 215-2929 or e-mail [email protected].
Note
1. Jaksa Panic, Big Truck Rental Canada.