March 1, 2003
SEEKING HIGHER RATES DEAR RER: Your point is valid in your article concerning delivering what the sales reps promise (From the Editor, December 2002 RER).



Your point is valid in your article concerning delivering what the sales reps promise (From the Editor, December 2002 RER). I have been in the equipment rental industry since 1994. I have been in outside sales since 1995. When I think back to when rates were high over the last few years I can associate high quality with the higher rates. Sales reps who have the backing of high quality and good service always get higher rates. No sales rep enjoys walking into a rental store knowing people are looking at them because they had called in orders with low rates.

Another issue is utilization. When an emphasis on utilization is pushed from the corporate level down through the regional levels to the sales reps, the reps are going to forget about what rate the equipment goes out at and will concern themselves more with getting the equipment on rent no matter what. Of course the downside to this game is a point you made as well, without good equipment and good quality service does it really save the contractor money to take your equipment at a highly discounted rate ? NO !!!!
Jamie Engle
Plano, Texas


My name is Jon Smith, sales & marketing for Plug-It Products. We manufacture inflatable rubber pipe plugs used in the sewer and storm collection systems. Many rental companies rent and sell our products to their customers.

I was glad to see you speak up against slashing rental rates in From the Editor, December 2002 RER, we see this practice all too often, as well as the aftermath. But where does the ability to offer large discounts start?

How about the companies that manufacture the products? If we offer large discounts to the rental companies, who can blame the rental companies for offering large discounts?

We have to sell the value of our products to the rental companies. Sure, once a rental company has purchased a product, they can rent it for whatever they want, but what if we begin to promote a culture of selling the value of the products we make to the rental salespeople?

I wonder what would happen if you did an article about manufacturing companies and the effect we can have on the companies that sell and rent products!
Jon Smith
Director of Sales and Marketing
Plug-It Products
Lockeford, Calif.



First of all, I want to thank you for your kind comments about me and Multiquip in your December issue of RER. It certainly is traumatic for me to leave the industry; however I feel certain that I'll surface somewhere in the near future.

Since you published the interview, I received word from some of my good customers that Multiquip's competitors are elated with my retirement. That is a great compliment in itself, but they should continue to look over their shoulders because Multiquip's management team, made up of Tom Yasuda, Roger Euliss and Bob Graydon, is truly excellent and I foresee continued growth along with aggressiveness and flexibility for the company. In addition, I neglected to state that my son, Michael, is now part of the Multiquip team and for his 24 years, he is a lot smarter and aggressive than I ever was, so there's another reason for the competition to worry.

Best wishes to all my friends in the industry and my sincere thanks for their support over the years.
Irving M. Levine
Rancho Palos Verdes, Calif.


Dear RER:

A note of thanks for your article on Louisiana Rents. I believe you captured the true essence of why we have been successful in building a new company in the midst of all of the consolidators — our people. Experienced, hard working and dedicated is what I and Lee Price were looking for, and found in building Louisiana Rents/The CAT Rental Store just three short years ago.

I also regret to inform you that at press time, I, along with Price, were told our services were no longer needed at Louisiana Rents, and that our positions would be handled by people within the dealership.

Again, thanks for a great article, we've had nothing but compliments about it to date.
Donald Charbonnet
Metairie, La.

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