Rental market reasoning

Rental market reasoning

February 28, 2017

Easy maintenance and reduced investment generate more ROI for rental houses.

Tomball, Texas-based Motion Machinery is an equipment rental company in a very competitive market. With a fleet of more than 80 machines, the company has a wide array of equipment, including machines from several premium brands. When acquisition and maintenance costs started cutting into the company’s bottom line, they purchased a 2.5 yd3 SDLG LG938L on a recommendation from fellow Texas-based company, Conrad Construction.

The initial price of the wheel loader was significantly lower than premium machines, and the company since found that the loader’s easy-access design will reduce the amount time and money spent on upkeep.

“I have a friend from Conrad Construction who had recently purchased an SDLG wheel loader, and he loved it,” explained Don Cannon, owner of Motion Machinery. “I previously worked as a dealer, so I know that acquisition and maintenance costs are the key to making money in the rental market. The LG938L’s price was right where we needed it to be and the easy maintenance will save us money over the long haul.”

Cannon said premium brand wheel loaders are becoming increasingly complex, making it harder for small shop owners to maintain their machines. In the rental market, the quicker a machine is up and running, the quicker it can make money for its owner.

All SDLG wheel loaders feature easy access engine compartments on all sides of the machine. Most of the machine’s vital parts are accessible within seconds, reducing the amount of labor hours needed for maintenance or repairs. The LG938L also has dry disc brakes that are easy to access for changing brake pads. Cleaning and routine tasks are simpler and take less time than when working on premium machines. Cannon said that his no-frills SDLG wheel loader has been performing so well that Motion Machinery rarely sees the machine in the shop. The LG938L has reached some 80% usability in its 10 months on the fleet.

“We rarely get to see the machine at our yard,” he explained. “Even better, the renters return the machine feeling very satisfied- we’ve had no issues or complaints. The SDLG wheel loader performs just as well as any of the other premium brand equipment I’ve owned. Customers may not miss the high-end features of premium loaders but they certainly appreciate not paying for them.”

The LG938L has shown provided other benefits to Motion Machinery’s fleet, too.Its no-frills configuration is easier for rental customers to learn and operate. The features of premium brands often mean more time spent figuring out how to use them. Also, the company doesn’t have to pass on the price of those features to customers.



Motion Machinery celebrates the purchase of its SDLG LG938L.

 

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