Kate Cline is editor-in-chief of WQP. Cline can be reached at firstname.lastname@example.org or 847.391.1007.
During tough economic times, recurring income can be the crucial factor in helping a dealership stay afloat. For the May Dealer of the Month, Peacock Water in Lima, Ohio, monthly income from a rental program was key – according to co-owner Andy Peacock, it helped the company ride out the economic storm.
Many dealers have differing opinions about rentals. Andy and his brother and co-owner, Tim Peacock, said they have run across many dealers who view rentals as an old-school, outdated way of doing business. But for Peacock Water, that recurring income source is a key part of the business plan. “When my dad first started, exchange tanks are what they were dealing with,” Andy explained. “So that sort of monthly income idea was always deeply ingrained in him.”
Andy and Tim carried on their father’s philosophy, and that recurring income proved to be a boon to Peacock Water during the recession. And it is certainly not the only dealership that has found this to be true – other dealers Water Quality Products has featured in recent months have cited recurring income sources, such as rentals, soap and bottled water deliveries and more, as helping them to make it through the recession.
What is your take on rental programs? What other sources of recurring income does your business benefit from? Let us know in the comments below, or e-mail us at email@example.com.
Read more about Peacock Water in the May Dealer of the Month feature.