Heavy equipment are not so easy to get especially for people who are budding entrepreneurs and do not have much experience in the construction segment. Unlike the big players who can afford to buy variety of equipments as and when they are needed, small construction companies have to struggle to even get a used one on rent. For the ones who have a project in hand but no equipment, situations become a lot harsher to such individuals. Knowing the fact that how expensive heavy equipment can be and how hard it may hit their finances, it become almost impossible for them to buy a brand new one. They have the option to buy a used machine but what after the ongoing project gets over. In case, they run out of projects, the one they have bought will stay idle. Therefore, it makes more sense to take it on rent.
There are people who understand the needs of such upcoming construction companies and have started their own business where they act as a middleman and try to meet the requirement of both the giver as well as the taker. However, many see this business in deep trouble as they are not getting customers directly walking in their offices and opting for other modes to take care of their business requirements.
The web provides it all:- With the advent of internet, there are many things that took a change in their way of working. Internet was undoubtedly helpful to many but at the same time, it also became the reason for some to lose their business. People who were in the business of providing heavy equipment on rent are finding it hard to get customers as the customer manages to directly get in touch with the giver and makes a headway. This is in turn giving a hard time to people involved in these businesses and many had to shut their offices.
Now, we also have a smart bunch of people who have used the internet to develop their business. They simply put in an Ad stating people who are in need of heavy equipment on rent can contact them. They design a flashy website which incites customers to call them up or visit them and they in turn meet up with their needs.
Big fish swallows small fish:- We all know the rule of the jungle. The smartest and the fittest survive. Same is applicable in this business. There are some guys who are in this business for the last many years and have strong contacts with their clients (with both the giver and the taker). These guys ensure that they swallow the business of any new entrant in their arena. When they see a new chap making an entry, they begin giving gifts and freebies at their cost which motivates the customer to stay with them. This makes business impossible for the new entrant and he eventually has to shut his business.