Spring 2013 Hardlines Strategies

STORE PROGRAMS

Cashing in on Rental How Blish-Mize Can Keep Your Rental Business Profitable

They will also tell you rental is one of the best investments they have ever made. It was easy for the brothers to get started, too, thanks to the partnership their wholesaler Blish-Mize has with MTA Distributors. MTA offers complete product selection, support and training; everything the brothers needed when they added rental to their store. If you’re just starting out in rental or you need help building the category, Blish-Mize and MTA offer big advantages over other rental programs. Make sure you are taking advantage of all they have to offer. Rental is a Hot Category By getting into the rental business, you’re tapping into one of the hottest categories in retailing today. Rental can increase your margins, increase customer traffic and bring new customers into your store. “Given the state of the economy in the past few years, a lot of stand-alone rental stores have gone away because Hill, Mo., and you quickly realize brothers Frank and Brian Dinges have invested a lot of money in the rental business. Rental items are on display anywhere they can find a place for them: upstairs in the showroom, downstairs in the basement and outside the store in another building. L ook around Dinges Hardware and Rental in Pleasant

Frank Dinges of Dinges Hardware and Rental started offering rental five years ago. Now his selection includes everything from hand tools to large construction equipment.

Start at Your Own Pace As you’re getting started in rental, MTA allows you to make as big or as small of an investment as you want. Some retailers start small and gradually add more. The program with MTA is completely customizable. It does offer a suggested start-up package applicable for just about any hardware or lumber retailer; however, you can pick and choose the items you can afford and for which you have space. “We’ve had many retailers start out with just a pressure washer, then the next month add another tool,” Ammerman says. “That saves them from laying out a lot of money all at once. Some customers

they weren’t diverse enough,” says Mark Ammerman, sales development at MTA. “Hardware and rental is a perfect fit. Customers looking for rental items are coming to your store anyway.” The rate of rental is increasing, too. The American Rental Association (ARA) fore- casts revenue growth for the rental equip- ment industry will outperform the general economy in 2013. It predicts industry rev- enue from rental will grow 7.6 percent to reach $33.5 billion this year. In addition, homeowners looking to save money are doing more jobs around the house themselves, which means they will likely need more tools. Contractors looking to save money may also be renting tools instead of buying them.

10 Spring 2013 • Hardlines Strategies