Rentals Reimagined: Evolving Rentals to Adapt to Industry Changes

Whether catering to weekend DIYers tackling small projects or contractors managing tight budgets, having a robust rental program allows stores to provide access to high-quality hand and power tools without the upfront investment. Having a robust rentals department helps meet customer needs, drive repeat customers, increase revenue and build relationships.

For many operations, including Gillman Home Center, which has 18 locations in southern Indiana and Ohio, a full-service rental department with hand and power tools has evolved from a convenient add-on service to a cornerstone of the business’s success.

Forever Evolving

Robert Bond, operations manager at Gillman Home Center says the landscape for hand and power tool rentals has changed dramatically and the role of rentals in driving sales has shifted.

“With the shift toward battery-operated power tools, many of these products have become inexpensive for the consumer,”
Bond says. “A lot of the time, it makes more sense for the consumer to purchase their tools. We still offer power tool
rentals, but they have declined.”

The challenge of attracting customers to hand and power tool rentals lies in how the program is marketed. Rather than
highlighting specific tools, Bond says promoting the rental program as a whole is more effective.

“If we’re marketing a deal on a drill, that’s not going to inspire someone to rent a drill who doesn’t necessarily need one,”
Bond says. “They’re more likely to say, ‘I need this tool, where can I rent it or buy it.’”

Gillman Home Center makes the rental process straightforward for customers. Tools can be reserved in-store or over the phone, and staff members are trained to provide customers with a thorough understanding of how to use the equipment safely.

“Walking the customer through the product’s safety information, in most cases takes about five to eight minutes,
covers our liability and helps the customer know how to properly use the tool properly,” Bond says.

The Power of Rent-to-Buy

The decline in hand and power tool rentals doesn’t mark the end of opportunities in the rental market. While customers are increasingly opting to purchase affordable power tools, Bond says there’s still a strong demand for renting that
costs more to purchase.

“Across the board, our power tool sales, in every brand we carry, has grown,” he says. “One example is angle grinders. Just 15 years ago, we would have customers renting those every week, but now they will purchase that tool because the barrier for entry is much lower.”

For high-end equipment like stump grinders, air-powered tools and seasonal lawn care tools such as dethatchers and
brush cutters, rentals remain a vital service.

“Those pieces of equipment are high movers for us,” Bond says. “Everything has a season but seasonally, we see customers rent air-powered tools, as well as an assortment of lawn tools like dethatchers, cable installers and brush cutters.”

One of the key advantages of maintaining a rental program is its potential to drive sales. Offering customers the ability to
rent premium tools before making a purchase helps remove barriers to ownership, especially for more expensive items.

“Maintaining brand recognition in your rental inventory goes hand in hand with the equipment sales for that brand,” Bond says. “If a customer comes in to rent a chainsaw, being able to rent that item they see on our shelves is a great tool to
make that sale.”

This rent-to-buy model provides an effective way for customers to test a product without committing to a full purchase upfront.

“It’s a less-expensive way for them to see if they would like the tool,” Bond says. “After the rental, customers can either purchase that rental tool or purchase a different one. It’s a nice introduction for our more premier brands.”

Rev Up Your Rentals

Creating or reviving your store’s rental department can be daunting. Gillman Home Center operations manager Robert Bond shares three tips for store owners on how to succeed in rentals.

• ASK QUESTIONS

  • There are many resources to prepare a feasibility study on rentals for your area. Check with your wholesaler or the American Rental Association before developing your rental program. Bond suggests speaking with your store’s legal team and choosing an appropriate insurance company when developing this department.

• FIND A CHAMPION

  • Like any other department in your store, it is critical to tap a team member who is passionate about that category and will be able to evolve their role to suit your new department’s needs. To be successful, Bond says stores need a champion of rental to help adapt your business and coach your team.

• BUY IN

  • If you’re not in, you’re out. Rental can be intimidating if you don’t have experience, Bond says. Instill confidence in your staff for rentals to succeed.