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Why it’s Important to Build a Relationship with your Equipment Dealer

| Topic:

Business Advice

When you’re looking to purchase new equipment, do you pull out the phonebook, call up local dealerships and narrow your choices down by trying to find the cheapest price? If so, you might want to consider a different approach – one that will ultimately save you money in the long run.   

Developing a good and loyal relationship with one dealer is one of the most effective ways to reduce equipment costs. Here’s why: your loyalty and business is exceptionally important to your supplier. Just as you value their business, they value yours too – in this case, a good relationship is beneficial to both parties.

As you continue to bring your business to one supplier, your equipment dealer will get to know you and your business. And, armed with a better understanding of your business, your dealer will then be able to sort through the vast amount of equipment on the market and find the best, most suitable options for you, allowing you to leverage your purchases and costs and insuring you receive a good deal and quality service. In other words, it pays to develop a relationship with one dealer.

Experts insist that dealers take several considerations into account when determining equipment costs and rental rates. And while market health and machine availability are indeed factors, customer history is a determining consideration as well. Dealers will look at customer history, and if you’re a loyal customer, you can bet you’ll get a better rate and service when you go to purchase or rent equipment from them.

One more tip for reducing equipment costs – Plan ahead. Know the type of work you will be doing throughout the year and the type of equipment you’ll need to purchase or rent. If you purchase all your equipment at once, you’re likely to receive a better rate. Similarly, when you’re looking to rent equipment, know the duration of time (in total) you will need the equipment for. You’ll get a better rate if you rent the equipment for longer periods of time, rather than renting in spurts.

For instance, if you know you have three big design + build projects that will require the use of a heavy-duty backhoe loader, it’s best to rent that machine upfront for the entire duration of the three projects. Renting the equipment once for the entire duration will also ensure equipment availability. Lastly, be sure to inquire about maintenance and repair responsibilities to ensure you don’t get plagued with extra, unexpected costs in the end.

Landscape Management Network is a collection of systems, tools, and training to help great contractors build and manage great businesses.

Caterpillar is pleased to partner with the Landscape Management Network to bring you better, more productive ways of running your business.

For more information about Caterpillar Inc. or to locate a specific dealer, visit

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