Written by: Robin Currie
Everyone that knows the Currie Team understands we are history buffs. Maybe we are guided by the Boston culture, or maybe we are innately driven by our family legacy of entrepreneurs and revolutionaries (well-documented and dating back hundreds of years). Either way, history gives us clues into not only what has been, but what could be.
Evolution is an important aspect of The Currie Model©, and as we move from Currie’s Phase IV into Phase V of the Marketplace©, Pinckney’s Treaty of 1795 informs me. Led by ongoing efforts and commitments to eliminate silos within our equipment distribution companies, we seek inspiration from unlikely sources. The details of the treaty are not what’s important here, but rather the spirit.
“Led by ongoing efforts and commitments to eliminate silos within our equipment distribution companies, we seek inspiration from unlikely sources.”
Thomas Pinckney was an American Revolutionary War military officer and ambassador, known for his diplomacy skills. In 1795, Pinckney successfully negotiated an agreement with Manuel de Godoy, a representative of the government of Spain. The treaty would remediate border tensions (departmental silos) and create a more peaceful flow of goods through the Mississippi River, thus improving trade opportunities for America (Used and Rental Departments). Coincidentally (or not) the treaty included an additional win for America, as Spain agreed to repeal duties on products coming through New Orleans. Interesting.
“The Currie Team is in a unique position to help companies implement and integrate a future-
focused approach to these critical departments.”
This rich historical document provides a model for removing constraints through peaceful and collaborative means. This is Currie’s vision for the Used Equipment and Rental Departments. The goal is to create policies that forward the interests of both departments:
- Rental fleet as a more effective source for used equipment sales through more intentional fleet purchasing
- Used equipment inventory right-sized for six annual turns
- Pricing collaboration of a 6% revenue multiple for monthly rental sales, and 30% gross profit on used equipment sales
These elements are part of Currie’s larger vision for a committed alliance between Used and Rental Departments. Some dealerships have embraced this idea and are seeing success.
The Currie Team is in a unique position to help companies implement and integrate a future-focused approach to these critical departments. By working together, we can improve rental utilization, gross profit in both departments, wash out profitability, and inventory turns. These are a few of the topics that will be covered at MHEDA’s Rental and Used Conference in October.