If customers don't get the quality of service they expect, they
normally resort to the traditional options open to them. This
usually means making a call to complain, or waiting until the
company representative calls before emptying both barrels of
pent-up frustration into them.
The usual scenario then ensues: the company rep does a bit of
diplomatic grovelling, the customer relents (because he has been
using the supplier for many years and old habits die hard) and
everything is fine until the same thing happens again.
Sound familiar? When Warrick Reynolds, managing director of a shot
blasting company of some 20 years in Stoke-on-Trent got fed up with
his local plant hire business giving him the run-around - "Yes, the
kit you ordered will be on site at 8am tomorrow morning,"and it
arrives at 11am instead, or maybe not at all - he went one step
further.
Following a chance comment from his 21-year-old daughter, Lisa, who
said, "I think we can do better," Warrick decided to take her at
her word.
He decided to establish a new plant hire company and appointed his
daughter managing director to help set it up. A bold step in an
industry not exactly overflowing with young female
entrepreneurs.
Yet Reynolds had every confidence in his daughter. Since she
already worked in the family business running a subsidiary company,
her transition to Kanga was relatively straightforward.
But why the name Kanga? "It's just a nickname," explains Lisa
Reynolds with an impish grin, but without elaborating.
Important move
The plant hire company began life on 1 April this year and has
barely had time to draw breath since. One of its first, and most
important moves was to headhunt a sales director from one of the
UK's largest national plant hirers.
"The family used to be customers of mine and over time a personal
friendship developed," recalls Russel Moxham. "I was invited to an
informal business lunch where Warrick threw a piece of paper across
the table at me. It was the company registration document for Kanga
Plant Hire."
Moxham didn't hesitate. Since he is a man who has spent 25 years
working in the plant industry - predominately for Caterpillar, with
many of those years spent in the Middle East - and who clearly
can't resist a challenge, he agreed to join the new company as
sales director.
From the Reynolds' point of view, it made sound business sense to
get Moxham on board. They were well aware of the wealth of
experience and knowledge he could offer the new venture.
Understandably, the birth of the new company ruffled a few feathers
among some of the long-standing plant suppliers in the
region.
"Initially we knew we were never going to be taken seriously, but
now we've achieved a satisfactory level of business we must be
hurting somebody out there," says Moxham. "We don't really have a
problem with the big companies. Although they will resort to bully
tactics, and they seem to have lost the drive to provide the same
level of service to large companies as they do to small
businesses."
Rather than deter the start-up company, this reaction has made the
Kanga team all the more determined to make a success of their
business.
"Our strength is that what we lack in size, we make up for in
commitment," believes Moxham. "We have set out our stall to be
truthful and honest. On top of which, we want good, regular
business where we have a solid customer base. Our objective is to
increase our client list at the rate of one new account holder a
week."
Moxham places great emphasis on the company ethos, which is to give
customers the level of service they expect. "If this means driving
up and down the motorway four or five times a night to ensure that
kit is on site for 8am the following day, then so be it. The Kanga
team is prepared to do just that, and on more than one occasion
that is precisely what we have done," he says.
Major investment
Although the company has been running only since the spring, Kanga
has already made its first major investment in equipment.
In June it started its fleet with 15 Caterpillar excavators from
Caterpillar dealer Finning (UK). These comprise three 301.5, six
302.5 and five 304.5 mini excavators, plus one 438 backhoe
loader.
"After reviewing six manufacturers, we chose Caterpillar machines
as it shares our attitude towards quality and service," explains
Reynolds.
Caterpillar offered Kanga a complete package through a single point
of contact and this helped seal the deal. "With access to more than
500 Caterpillar service engineers we can deliver excellent
nationwide service to our customers after only seven months in
business," says Moxham.
Another member of the Kanga team is Reynolds' 22-year-old son, Lee,
who organises the transport, preparation and deliveries of all the
equipment to and from different sites up and down the
country.
"This is where Kanga Plant has scored," explains Moxham. "Reynolds
has a very high personal standard that everyone is expected to
follow. The way that he has operated his business for 20 years has
been instilled in both Lisa and Lee and it shows in their level of
commitment."
What about the pitfalls of growing too quickly? Reynolds points
out: "Kanga Plant aims to adhere rigorously to its structured
growth plan that will allow it to remain cash positive while still
being able to continuously invest in additional equipment."
Treating customers as they expect to be treated is already paying
dividends for Kanga. An example of this is that Kanga has never had
its plant hire rates questioned.
So what does the immediate future hold for the new company?
Growth in the near future includes taking on additional office
staff along with a fully equipped service van and a qualified
fitter. On top of which the company is negotiating the purchase of
a 26t plant truck to complement its existing 7.5t vehicle.
"We have got other companies that don't hire plant from us, but for
whom we undertake the transport of their kit," says Moxham, before
adding: "It is not the company's policy to become a transport
specialist."
Bearing in mind the long working hours and the demands of an
ever-growing customer base, has it all been worth it?
"The sense of achievement is greater than the level of
frustration," concludes Lisa Reynolds.
Bigger and longer established plant hire companies should keep an
eye on this new player in the market - otherwise Kanga will bounce
in and scoop business up from underneath their noses before they
realise what is happening. n