What mistakes do people make when acquiring equipment?

Ian: This is really a choice rather than a mistake, but I think the most important area where people go wrong is considering their machines as commodities rather than strategic assets. In my experience, some companies look at the acquisition cost of a piece of equipment, which leads to short-term decisions that aren't necessarily good overall. Our most successful customers understand that when buying a piece of equipment, you're buying it for years to come. So, you have to look at the ownership cost per hour for, say, a ten-year period.

Of course, being able to do that depends on having a vendor that can help you keep the equipment performing at its optimum level year after year. We have a very strong maintenance team and an equally knowledgeable technology team to ensure we can deliver on that.
 

What kinds of commitments do companies look for from vendors?

Ian: When working with larger companies, our approach varies depending on whether the company is private or publicly traded. Public companies tend to formalize everything, requiring detailed documentation upfront, including labour rates and parts discounts. For these clients, we develop comprehensive master service agreements that outline our long-term relationship—essentially, these are partnership agreements.

In contrast, private companies, many of which are large and family-owned, strongly emphasize their values. Their family name and reputation are often at stake, so they are particularly interested in how SMS Equipment's values align with theirs. For us, it's crucial to listen and truly understand their value system. One of the achievements I'm most proud of is how we've supported some of these companies in their growth journey.
 

What one piece of advice would you give a small customer that wanted to grow?

Ian: Don't overcommit to equipment purchases; instead, invest more, if necessary, in hiring top talent and focus on delivering quality work. Find a reliable business partner who can support your needs as you grow. I'm particularly proud of a client who began with a single skid steer and expanded to forty machines over ten years. Despite their initial financial constraints and limited credit history, our finance team and I worked closely with them to develop a realistic plan. They avoided overcommitting to equipment and prioritized hiring skilled people. I also helped them connect with skilled tradespeople through my industry contacts. I take pride in the crucial role we played in their growth.