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Going Beyond Diversity: Star Equipment's Rental Advantage

Tue April 23, 2024 - Midwest Edition #9
Kennedy Phillips - SPECIAL TO CEG


With more than 90 brands of machines, tools and systems available for sale or rent, the team at Star Equipment goes the extra mile to ensure its customers have access to the right tools for their job site needs.
Photo courtesy of Vermeer Corporation
With more than 90 brands of machines, tools and systems available for sale or rent, the team at Star Equipment goes the extra mile to ensure its customers have access to the right tools for their job site needs.
With more than 90 brands of machines, tools and systems available for sale or rent, the team at Star Equipment goes the extra mile to ensure its customers have access to the right tools for their job site needs.   (Photo courtesy of Vermeer Corporation 
) For decades, compact and full-size skid steer loaders and compact track loaders were the staple of Star Equipment’s rental fleet.   (Photo courtesy of Vermeer Corporation ) Star Equipment’s customers have discovered that there are so many more applications they can use these machines for, especially when equipped with different attachments.   (Photo courtesy of Vermeer Corporation ) Excellent customer service is a cornerstone of Star Equipment’s business strategy, particularly in its rental operations.   (Photo courtesy of Vermeer Corporation ) Rem Lawyer, Star Equipment’s rental manager at the Des Moines, Iowa, branch and a third-generation family member.   (Photo courtesy of Vermeer Corporation )

Many equipment dealers claim to be diverse, but Star Equipment in Iowa takes it to another level by offering abundance. With more than 90 brands of machines, tools and systems available for sale or rent, the team at Star Equipment goes the extra mile to ensure its customers have access to the right tools for their job site needs.

According to Rem Lawyer, Star Equipment's rental manager at the Des Moines, Iowa, branch and a third-generation family member, their business philosophy is to work with different manufacturers and become dealers for them. While rental has become a significant part of the business, it started primarily as a dealership.

Photo courtesy of Vermeer Corporation

Rem Lawyer

The story of Star Equipment dates begins in 1968 when founder Max Bowman left his job at a small construction equipment rental and sales outfit in Des Moines to start his own company. He aimed to create a company that could fulfill all its customers' equipment needs. With the support of his wife, Bev, and their three sons, Bruce, Brett and Brad, the company grew to cover the entire state of Iowa.

Star Equipment now operates branches in Des Moines, Cedar Rapids (opened in 1987), Waterloo (opened in 1985) and Ames (opened in 2008).

The decision to venture into rental came in the 1980s to expand the equipment sales business.

"The thought was that rental would breed sales," Lawyer said.

Many contractors wanted skid steer loaders but couldn't afford to buy them outright. Bowman recognized an opportunity and opened the rental side of the business, allowing contractors to get their jobs done before they could invest in purchasing equipment. This approach proved successful, as customers realized they could access the tools they needed from Star Equipment without the burden of ownership.

Having the right tool for the job is crucial for success, Lawyer emphasized. While smaller machines are often the right choice, there are times when larger machines are necessary. However, most customers cannot afford to own both. Rental provides an excellent option for sourcing the required equipment when needed.

Many customers find it more convenient to rent instead of buying because they can include rental costs in their bids and avoid maintenance or ownership expenses. Additionally, they can access a variety of different types and sizes of equipment to find the best match for their specific tasks.

"We're not your average rental store by any means," Lawyer said.

Star Equipment's rental business has grown significantly over the years. While it was initially created to drive equipment sales, the majority of their rentals are now rent-to-rent rather than rent-to-sell. Currently, 90 percent of Star Equipment's rental customers are contractors involved in concrete work, landscaping, hardscaping, fencing and general construction applications.

Getting Into Mini-Skid Steers

For decades, compact and full-size skid steer loaders and compact track loaders were the staple of Star Equipment's rental fleet. Recognizing the need for expansion and options, Star Equipment introduced mini-skid steers to its rental fleet about eight years ago.

Initially hesitant, they soon realized that general contractors were regular renters of these machines for smaller jobs. The versatility of mini-skid steer loaders, equipped with various attachments, proved beneficial in different applications.

"We were a little apprehensive at first," said Lawyer. "But once we tried them out, we quickly realized that general contractors were coming in regularly to rent these machines when they had smaller jobs to do."

Photo courtesy of Vermeer Corporation

"We started with one mini-skid steer at each store, and in the last couple of years, we've grown our fleet significantly," he added, including adding 16 Vermeer S925TX units.

The growth can be attributed to their customers being open to trying new machines at the company's recommendations. Through consultations, Star Equipment's contractors are now realizing this size of loader is the right tool for a lot of the jobs where they had been using a full-size skid steer loader.

Star Equipment's customers have discovered that there are so many more applications they can use these machines for, especially when equipped with different attachments.

"For example, in a fencing application where before they'd use a two-person auger to drill holes, they'd end up wearing two people out. Now, they can put an auger on a Vermeer machine and don't have two people tied up all day — or exhausted at the end of it. Using different attachments, there are so many jobs our customers can do with a mini-skid steer."

For instance, he said, the same fencers can also put forks on one of Star Equipment's Vermeer mini-skid steers to stage the posts in specific spots and then switch out attachments to drill the holes.

This tactic works especially well for Star Equipment when inventory is thin in the yard, like in the middle of the summer when customers are busy working, and they don't have unlimited iron to rent. "If we're out of full-sized skid loaders when the customer calls in, our sales team asks what the machine is needed for, and then we work to find other tool options to get the job done."

He added: "A lot of times, if they're looking for a smaller skid steer loader and we're out, we can steer them into a mini-skid steer, and they often find out that that's the better tool for the job anyway. It's all about partnering with them to find the right tool."

Focusing On One Size, One Brand

To ensure customer satisfaction and convenience, Star Equipment standardized its rental fleet to stock only one size of Vermeer min-skid steer. This approach eliminates any confusion or disappointment for customers who want the same model they previously rented.

Photo courtesy of Vermeer Corporation

The Vermeer S925TX boasts 24.5 hp (18.6 kW) of productive performance; 15.5 gpm (58.7 L/min) of hydraulic flow; 6 in. (15.2 cm) of ground clearance; dual axis lift/steer/curl functionality; a universal mounting plate and an option of 7-in. or 9-in. (17.8-cm or 22.9-cm) tracks. It has the features to increase productivity on the job.

"We found that this Vermeer model is kind of the middle-of-the-road size, and if we have one size every time a contractor comes in for one, they always get the one that they want," said Lawyer. "Our customers know that they're going to get the exact model they had before, and that makes a huge difference for them."

Also, Lawyer said, having Vermeer mini skid-steers in their fleet has helped drive repeat business.

"Our customers like having the consistency, and it is a solid, reliable machine, which certainly helps."

Importance of Dealer Relationship

Maintaining strong relationships with equipment dealers is another key aspect of Star Equipment's success. Instead of viewing them as competition, they collaborate with other dealers to meet their customers' needs. For instance, they work closely with Vermeer Iowa, which supplies their Vermeer mini-skid steer loaders. The proximity of the Vermeer Iowa and N. Missouri location to Star Equipment's Des Moines branch allows for quick and efficient communication and support.

Photo courtesy of Vermeer Corporation

"They pick up the phone and talk to us about what's going on with our equipment. And because they're right across town," said Lawyer. "They're quick to swing over and take a look at something in person if we need them to."

Excellent customer service is a cornerstone of Star Equipment's business strategy, particularly in their rental operations. They appreciate the commitment that Vermeer Iowa and N. Missouri have made to stay connected with them.

"Communication is important for great customer service, and as their customer, we appreciate that they have somebody available to answer our calls and that their service department is always ready to answer our questions," he finished.

Star Equipment's long-standing success stems from its diverse equipment fleet, as well as its dedication to customers and the staff's ability to partner with them. While sales remain their core business model, according to Lawyer, who is part of the company's succession plan, rental will continue to play a significant role in the company's future.

(This article was provided by Vermeer Corporation, Pella, Iowa.)




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