carried out research on the industries that invest the most in digitization, in which it was discovered that one of the least digitized and most reluctant sectors to incorporate new technologies in Spain is construction. If this pandemic crisis has taught us anything, it is that digitizing operations and processes is key to improving productivity and increasing profitability.
Within this sector, we find the rental market for machinery and tools. It is a very fragmented market in which some 2,000 companies specializing in machinery rental operate, of which 90% are SMEs, and where margins are very low. In addition, according to the latest studies, during the months of alarm status due to Covid, more than 50% of renters experienced reductions in billing between 25% and 75%.
Even though there is more than 60,000 searches per month on Google for transactional terms “rent + specific machine or tool”, a large part of these companies continue to use only and exclusively as a method of attracting new clients, salespeople who visit companies, construction sites and factories, leaving cards and catalogues. Taking into account salaries, travel, allowances, telephones, etc., the company cost of each commercial can be more than €30,000 per year.
The commercial, due to his personal treatment, can be an important figure for the loyalty of those recurring customers who make long-term rentals, but are not profitable in short-term rentals. But, What if there was a portal that worked for me attracting customers at a fixed cost per customer?
And that is how Corporate LAB, the division dedicated to validating new business models, decided to create a portal whose objective is help machinery rental companies improve the occupancy rate of their machines taking advantage of the great online demand unsatisfied so far.
What is Equipzilla?
is a portal that allows users to request the rental of a machine or tool in a specific location and that, with just a request for a quote, several renters contact you, the closest ones, to offer you the most suitable machine according to the work and the budget of the same.
Renters, for their part, if they have a delegation near the customer’s location and if they have the requested machine in their catalogue, receive a notification in their renter’s area with the details of the rental and the customer’s contact information.
How Equipzilla works
The operation of Equipzilla is very simple, the renter only has to register in Equipzilla and he will start receiving rental requests in his management panel. This panel allows them to see and manage all the rental requests that they receive, changing their status, leaving notes, writing down the offers made, the rentals obtained, etc.
Equipzilla for renters has a cost of only €99 for every 20 rental requestsrenewable in packs of 20 opportunities, so each opportunity costs only €4.95. Taking into account that the average rent in Equipzilla from e.g. a lifting platform is €1,300 and €700 in the case of a mini excavatorthe return on investment is more than evident.
More than 300 rentals per month and great growth during confinement
During the months of state of alarmwhile renters experienced large reductions in their billing, Equipzilla experienced a huge growth in your rental applications. While many companies stopped working and, therefore, stopped renting machines, individuals and freelancers took advantage of those months to rent machines and carry out those jobs that they never had time to do.
As you tell us Dario GonzalezEquipzilla CMO, “More than 30% of the rental requests in Equipzilla come from companiessome like Sacyr, Aena, Elecnor or LIDL They have already used it, but we must not forget the 40% of freelancers and 30% of individuals who also search for their machines on Equipzilla. The companies ask for longer rentals, but the renters recognize that more than 50% of their invoices are collected between 60 and 120 days after. The clients self-employed and individuals generate that liquidity necessary to avoid suffering cash tensions thanks to the cash payments.”
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