Grow Your Fence Business with Rentals

Fence installation is a profitable segment of the construction industry. Homeowners and business owners alike need fencing to protect their property, keep workers and family members secure, and provide a clear perimeter around their property.

Fencing will forever be needed as long as there are property owners who want to protect their property and those they hold dear.

However, the fencing industry is subject to ups and downs. When property owners are on a tight budget, they're more likely to repair their old fencing instead of replacing it.

If you're a fence contractor that sells fencing and performs installations, your business may be vulnerable to dips in the economy.

Establishing a rental division to diversify your services can help your business weather these ups and downs. Temporary fencing is a requirement for many special events and large construction projects. Expanding your services to include fence rentals can help strengthen your business model, broaden your customer base, and increase revenue.

Fast ROI Business Idea

Any time you're considering a new business idea, it's important to consider the return on investment (ROI) and how quickly your business will make back the money invested in materials or products.

Temporary fencing equipment has a fast ROI because it's easy to make back the money.

The key to making fast ROI is smart pricing. Most business owners can make back their money after renting a panel four times (or less, depending).

Find the Right Cost for Rental Services

A typical chain-link fence panel starter kit costs approximately $129 for chain-link panels, stands, and all required hardware.

Set your rental prices between $30 and $50 per panel per month. At this price, you can make back the money on your investment by renting your panels just three or four times.

If you can land a longer-term rental for your temporary fence, you may make the money back even faster.

Use Materials and Products Your Business Already Owns

Save money when starting your rental division. Use materials and products your business already owns to support your rental initiatives.

When your rental business expands, you can use revenue from your rental division to invest in more tools to keep your rental activities going.

Protect Your Business With Strong Contracts

Some temp fence rental companies have trouble getting clients to pay a removal fee, especially if the event is over (or the construction project is finished).

When panels are lost, damaged, or stolen, recovering the cost to replace them can also be difficult. A strong contract that lays out your payment schedule can help protect your interests.

• Include a clause that protects your panels in the event they are lost, damaged, or stolen.
• Charge upfront for the first month of rental, the installation fee, and removal fee, so you don't have to recoup those costs later.
• Write a strong scope of work to ensure your customers know what to expect.

Create Recurring Revenue

One of the reasons typical fence installation contractors struggle is that there's very little recurring revenue. Good fences last twenty years or more, so many fence contractors see little return business. After servicing a customer one time, the contractor may never hear from that customer again.

Fence rental is a great option to create recurring business, because rental customers can come back many times for repeat service. Special events companies and construction businesses have ongoing needs and may rent from one business several times a year.

Ensure Recurring Revenue by Encouraging Customer Loyalty

There are many things your business can do to encourage customer loyalty. Take steps to save customers money or make doing business easier for your repeat customers.  
Some tips:

• Develop a rewards program. Offer customers rewards for repeat business. Use a tiered reward system, so customers who spend more money enjoy bigger discounts. The more money spent, the deeper the discount.
• Make payments easier. Work with customers that need direct bill accounts to ensure ease of use.
• Allow for flexible payment terms. Set up payment terms that meet customers' needs. Some customers may need longer payment terms than others.

Offer a Quality Service

Temporary fences have a way of falling down if not properly or well-anchored. Avoid problems by using quality fencing material. For example, you can use Anchor Weights or Anchor Blocks to keep your fences upright, instead of sandbags.

Although sandbags can work for very short-term jobs, they deteriorate quickly in the sun and look unprofessional. Anchor Bases are longer-lasting, look better, and will ensure that your installed fence panels stand the test of time and weather.

By using quality products such as Anchor Bases, you'll save money in the long run because you won't have to return to your customer's location to fix fallen fence panels. This saves money on gas and labor costs and delivers better service, which might lead to better reviews, customer recommendations -- and repeat customers.

Also, use proper installation techniques. Have your own workers perform the fence installation and tear-down, to ensure installation is done correctly. This service is good value for your customers and also ensures proper use of your rental fencing.  

Reduce the Initial Investment

The initial investment for any new entrepreneurial endeavor can be high. A tight budget especially can make starting a new business or a new rental division more difficult.

To make your rental division a success, look for ways to minimize the initial investment required to get the business off the ground.

A great option is joining SONCO’s reward club. It’s free to join, and as a member, you'll be partnered with a temporary fence specialist who will provide you with helpful information as you start your fence rental business.

The SONCO Club also rewards loyal customers with discounts and coupons. You'll receive 10% off your first purchase and earn progressive discounts the more you buy.

Additionally, SONCO offers expedited delivery. Thanks to our warehouse system, we can reach most locations in the U.S. within two days. This means you can start your business without having to make a significant investment in materials.

You can locate your initial clients, close the deal, get the first payment (including the first month of rental, installation, and removal fees), and then use this money to buy the products from SONCO. This way, you won't have to disburse as much money upfront.

SONCO can even deliver the panels directly to your client's location, and you only need to be there to do the installation.

Diversify Your Fence Installation Business

According to research conducted by McKinsey & Company, diversified companies, especially in emerging economies, have shown higher excess returns compared to focused companies. For instance, diversified companies in emerging markets reported growth rates of 3.6%, while those focusing on a single service saw a decline of 2.7%.

Broadening your customer base and increasing the number of customers you serve can strengthen your fencing company and result in faster and more stable growth.

To learn more about ways you can make your fencing business thrive, check out our list of practical tips you can start implementing right away.