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When we think of life expectancy… a chair stair lift is the furthest thing from our minds. As a matter of fact, for most of us, until just a few years ago, it probably never crossed our minds. According to experts, there are over 7.1 million persons using home accessibility features in the United States. With some of the most common features being raised toilets seats, hand rails, ramps, widened door entrances, adapted door locks, lowered counters, slip-resistant floors and chair stair lifts. With the largest segment of the population being baby boomers, we can easily understand such an astronomical number.

How long should you expect your chair stair lift to work properly before hauling it off to the city dump? Well that all depends. It depends first on if you purchased it new or if you purchased it used. Buying a chair lift is like buying a car. It is possible to buy a used car that gives you ten long wonderful years without you changing the timing belt or the oil.( if I were you I would not try that) On the other hand, you can purchase a used car and if you didn’t know any better, you would have thought that the car salesmen went down to Fred’s Sanford’s Garage, splashed on a fresh coat of paint, switched out the rims and sold it to you.

When you purchase a new product there are some benefits that may not be an option with a used lift. When purchasing a new stair lift the option of purchasing insurance and warranties are readily available. While you still will want to be sure to carefully weigh all of your options, a few more dollars in insurance or warranties could potentially save you thousands down the road.

Also, when purchasing a new lift you can customize your chair to best suit your needs. of course this goes without saying; you are the best person to make customization decisions because you know exactly what daily activities you take part in. So what is the life expectancy of a chair lift? According to manufacturers a chair stair lift [http://www.usmobilitysupplies.com/harmar-summit-stair-lifts.html] should last at least 10 years or longer. So if you are thinking of purchasing a used one, be certain it is a lot younger than 10 years old for best performance.

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Source by Deborah Pretty

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As anyone who’s ever bought a used car knows, you have to approach the project armed with your own knowledge before you even set foot on the lot. In this situation, being uninformed is tantamount to being taken to the cleaners.

The same goes for buying a sailboat. And, like automobiles, no sailboat is the same, so you should know the basics (and some particulars, as well) about the overall condition of the Sunfish sailboat you have your eye on.

The first question should always be, of course, how much cash are you willing to part with? If you plan on upgrading a used Sunfish, that alone can cost from $550 to $750 or more, depending on whether you want to use it to race. Prices also vary by location and supply; there’s no “set” price for a used Sunfish sailboat.

Then, where do you find a good used boat? Some people prefer to place their own ads (either in local newspapers or on the Internet) as opposed to responding to those already published. Many people have used Sunfish sailboats in pretty good condition but just haven’t thought of placing an ad for it. Also, check out local dealers, particularly if you’re buying out of season or if the outfit isn’t a Sunfish dealer. Also, knowing that sailboats go for less in winter and fall will put you ahead of the game.

Some obvious things that people often forget to look for are: age of the boat, which can be determined by checking the rudder, gunwales, or the serial number, if you don’t know the actual age; the weight of the hull, which should be between 115 and 130 pounds, and the resistance or lack thereof – watch out for a hull that’s too flexible.

Also, check the mast step and daggerboard trunk for hairline cracks or holes, and the condition of the bailer and storage compartment. And, the cockpit rim may be hiding some damage.

Other places to look for potential deal-breakers:

Signs of moisture in ports or drains.

Nicks or dents in the blades; splits and cracks in wooden blades.

Rudder and tiller cracks, corrosion, or pitting.

Dents or bends in the mast, near the tube.

Corrosion in the gaff and boom.

Holes or bad seams in the sail.

Never let the seller think you know as much as you do, bring plenty of cash just in case, and you’ll find a good deal on a used Sunfish sailboat.

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Source by David Dunlap

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Even though many people choose to simply put water into their radiators instead of coolant, it is not really a good idea. If you do not have any coolant on hand and must use water, then by all means do so. It is much better than nothing and will definitely keep your vehicle from overheating. Do however, make sure that you purchase some coolant and put it into your radiator at your next available moment. When asked, many people simply do not know the difference between putting water into a vehicle or coolant; so if you have been wondering about this yourself, then you are not alone.

There is a big difference between using proper coolant and water. While water does help to keep your engine cool, it does not work nearly as well as coolant does. First of all, water boils faster and at a lower temperature than does coolant. Another thing that you should keep in mind is that coolant also performs the duties of antifreeze as well. If it is winter, than you risk having your engine block crack if you run your engine with only plain water. Engine coolant also has been formulated to keep the parts in your engine from becoming corroded. Water, it goes without saying, does not possess these qualities.

Now that the importance of always having coolant in your vehicle has been established, it is important that you check your coolant level if you have not done so in awhile. Coolant is very easy to check, and you should probably do so every time you check your oil. First, you should check your overflow tank. This is a clear tank and you can check the level without even taking off the cap. There is a fill line on the side, go ahead and fill it with 50/50 coolant to this point if you need to. If you have unmixed coolant, then you need to mix it with 50 percent water beforehand. Make sure your radiator is filled as well.

It is natural for dirt and residue to clog your cooling system, so doing a full radiator flush is a good idea once in awhile. In order to do this, you will need a wrench or screwdriver, rag, radiator flush solution, funnel, and a receptacle to place the used coolant. Making sure that your engine is cool, drain the coolant that is already in the tank. There is a drain plug on your radiator tank that you’ll need to unscrew. Make sure you have your receptacle underneath for the old coolant. Do not leave the old coolant where a pet or animal may drink it.

Now you have to replace the radiator drain plug. You are ready to put in your radiator flush solution. Unscrew the cap on the top of the radiator and fill it all the way to the top. Let your car run for about 10 minutes with the heater on all the way. After your engine has cooled completely, you may drain the fluid. Now you just have to replace the plug again and fill the tank up with coolant. Do not pour the coolant or flush solution on the ground, dispose of it properly.

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Source by Everette Jamison

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Moving companies are often wrong when it comes to estimating the weight and value of your household goods shipment. Some estimators do a pretty good job, but there is such high turnover in the industry that you never know how experienced your estimator really is. If you make your contract decision based on price, you may be in for a big surprise when the driver hands you the final bill at your destination.

There are a few simple steps you can take to estimate the weight on your own. Following these steps will keep you in charge of the process and protect your rights in case you need to make a claim.

You want to start by sorting and inventorying your belongings. If this sounds like more work than you want to do, there are companies you can hire to inventory and value the contents of your home. No matter who does your inventory, you need to have an inventory done. Without it, you are at a disadvantage from the start. With it, you have a foundational document that can be used throughout your dealings with the moving companies.

Start by separating the valuable stuff from the ordinary stuff, the heavy stuff from the light stuff, and eliminate anything that the movers won’t be moving. As you go, simply list what you have. The list will help you determine the weight and value of your shipment. The best way to proceed is to start upstairs and work your way down, or start down then up if you prefer. Move around each room in a clockwise direction and write down everything you see. Write down items on the floor first, and then items on the wall, and then items in cabinets. Stay consistent from room to room so you don’t miss anything. Collections can be listed as collections, rather than individual pieces. When you are done with the house, inventory the shed and the garage in the same fashion.

You probably won’t take everything in your house. Items that won’t be moved fall into two categories: things you can’t take, and things you won’t want to take. The things you can’t take include anything that could explode, start a fire, rot, or give off toxic fumes. Such items cannot be transported or placed into storage. These are the items that are most troublesome to deal with. You can’t just throw them in the trash. Call your county department of the environment; they will tell you how to dispose of them. Have a plan for getting rid of these items. You don’t want to leave a bunch of hazardous waste in your house. Realtors frown on that. Makes the house harder to sell. Items you don’t want to take should be donated to charity, sold, or consigned to auction. Have the items picked up before you get your estimates. If it’s not in the house, it won’t contribute to an estimating mistake.

Once you know what you are going to move, there are three approaches to estimating the weight of your shipment. The first way is to take an educated guess. Add up the individual weights of the items on your inventory. For reference, I have provided a downloadable table of household weights on my website. If you are moving an item that is not on my list, find an item of similar heft and use the weight of that item. Remember, you are looking for a god estimate, not an exact number. Add up all the individual items for your total weight.

The second way to estimate the weight of your shipment is to take a wild guess. I’m not kidding; this method actually works. I’m told that the average shipment of household goods will weigh about 40 pounds per item. Remember that some items will be boxes of small goods. Total the number of items on your inventory (including boxes) and multiply by 40. If you have 150 items on your inventory, your weight will be somewhere in the 6,000 pound range. Not impressed with this method? That’s why I call it a wild guess. Still, if your wild guess came in at 6,000 pounds and your estimator gave you an estimate of 3,000 pounds, wouldn’t you want to know why?

The third way is illegal, so use it at your own risk. There are household goods weight calculators online. Most of them are on government owned websites, military and G.S.A.. They are supposed to be for authorized users. If you decide to use one, be sure to read the warnings and use good judgment. I only include this information here because I know that some of you will look online for your weights.

Beware if your estimator wants to give you an estimate based on cubic feet; i.e., how much space your shipment will take up in the truck. This is a useless number for billing purposes, since interstate carriers have to charge you based on weight and distance. Figuring cubic feet is useful, however, in determining whether you will be sharing a truck with another shipper, get a whole truck to yourself, or need two trucks. The chart on my website also lists the sizes of household items in cubic feet.

With your inventory done and your weight figured, the next thing you need to know is how to determine the value of your shipment for insurance purposes. That consideration will be the subject of my next article.

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Source by Wayne Jordan

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How and why can pipe welding pay $1,000 a day?

Can any welder weld pipe? No. Pipe welding is extremely critical because if the weld is not done correctly lives and land and the environment are at stake. Find out more about 6G welding and why it pays so well. And why the welding school industry lies prevent most welders from learning to do it.

How can a pipe welder make $1,000 a day?

A very experienced pipe weld who can weld pipe using stick (SMAW) and TIG (GTAW) and who owns and operates his own welding rig (a truck with a motor-generator portable welder) can earn up to $150 an hour. If a Combination Pipe Rig Welder works 14 hours and is paid $71.42 an hour – 14 x $71.42 = $1,000. And yes, these rare welders can make up to $300,000 a year.

The other side of that coin is another welder.

Consider the welder who has slugged his or her way through 6 months to two years in a junior college welding lab – and now finds himself (or herself) slugging through days of robotic-like welding in a factory for as little as $80 a DAY. Both are welders. What is the big difference?

The mystery and myth about welding:

Both examples of accomplished welders (above) have worked hard for their skills. The mystery is why one makes up to $1,000 a day while the other makes as little as $80 a day.

The myth is this: “Go to welding school and you’ll make a good living.” This myth is perpetuated by an industry that has not kept up with the times. There are many reasons for this.

Welding Industry Myth Perpetuation Reason # 1:

Welding schools and instructors know that by keeping a traditional “learning chain” in place, students must spend more time in school. To become a pipe welder requires learning basic welding in at least one process. To be a “Master Welder” requires much more schooling because the student must master several processes. Typically, these include MIG, Stick, TIG, brazing, torch cutting. In addition (and along the path) welders are taught at least the basics of metal fabrication, metallurgy and often plasma cutting.

All this learning takes time and money – it is the “payday” for the welding instruction industry. Any short cuts are frowned upon as “cheating.” Yet, this “chain of learning is theft – stealing from welding students – and it has been going on for decades.

Welding Industry Myth Perpetuation Reason # 2:

The welding education industry does not want you to know how low the wages are for the skills they are teaching because they will lose students. The best aircraft TIG welders do make good money. These are structural TIG welders at a level that is difficult to achieve. However, few of these “cream of the crop” TIG welders make what an average pipe welder (a single hander – a pipe welder without a truck and welder) makes.

And the average TIG welder (who must still be an awesome TIG welder) will be offered $15 an hour in a factory… a very sad situation. The welding schools will point to pipe welding and say, “As soon as you have structural certifications, you can go to pipe school, graduate and make the big bucks.”

What they don’t tell you – you’ll be so worn out with welding school – all the time and effort and money to get structural certifications – you will give up and go get a $10 to $20 job. Often, there is no choice – students just hit the end of their money and they MUST go to work.

Now, the above starting wages for welders just out of school apply to welders who have had a “master welders” education! All that learning of all those processes and other skills still results in sickening low wages!

Welding Industry Myth Perpetuation Reason # 3:

“You must obtain your structural certifications before you can attend pipe welding school.” This myth is partially true just because the welding school industry conspires for it to be true. If you don’t have your structural certifications and you try to enroll in pipe welder’s school, you will be rejected. There may be a few exceptions in the U.S. but not many. In other words the basic structural welding schools conspire with the pipe welding schools to make this LIE a fabricated reality.

What they are NOT telling you:

There is NO LAW that says you cannot learn to weld by simply welding pipe! Imagine a school where you would be taught welding safety first. Next, you would learn to correctly strike an arc. After that, you would master stringer beads on the flat. Immediately after that, you would master stringer beads in the 6G position on pipe (the pipe is mounted in a fixed 45 degree position).

From that point forward, you would ONLY lay down stringer beads on pipe set at a 45 degree angle.

Next, you would practice open root welding on the flat. As soon as you got that down, you would practice open root welding on pipe in the 6G position. Never again would you weld anything on the flat…

Once you mastered 6G root passes, you would learn 6G hot passes. After that, 6G filler passes and after that, 6G cap passes.

Lastly the school would provide a Certified Welding Inspector (CWI) to test your best joint. If you passed, you would be ready to enter the high demand and high pay world of pipe welding.

What would be the total elapsed time – non welding to pipe welder? About 3 months! Just think about it – you could go from non-welder to pipe welder in a few months… NOT years!

Conclusion:

The USA may be the only country that does not have a structure of laws regarding pipe welding. In other words, if you can do it, you can do it – and that’s all there is to it.

In most other countries (including Canada) you must successfully complete a long chain of classes and certifications BEFORE you can become a pipe welder.

In the USA, if you can successfully pass a 6G welding test, you can find work as a pipe welder. Your first employer will require you to work as a helper to a pipe welder so they can watch you by slowly letting you weld more and more.

The reason for this is to be sure you are going to not blow joints in pipe lines – it just cost too much to rework the joints. Your time as a helper may be short or long – depending on you do – it could be a matter of weeks or a matter of months – but NOT years!

What should you do next?

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Source by Scott R. Linden

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Many states and counties require your vehicle to pass an emissions test every couple of years. Your car, truck or van cannot be driven or sold without a clean bill of health. Here are ten top tips to make sure your vehicle will pass the inspection.

1. If the “check engine” light is on, you will not pass the emissions test.

If it just recently came on, maybe the problem is something short-term and will go away after several driving trips. But if not, you will have to take care of whatever is causing the problem (see below).

2. Get an oil change if you haven’t got one in the past couple of months.

Sometimes gasoline can contaminate your oil in the crankcase which increases carbon monoxide emissions.

3. Change the air filter while you’re at it.

A dirty air filter can also increase carbon monoxide emissions and you can fail the emissions test.

4. Put in new spark plugs, properly gapped.

5. Check your gas cap to make sure it has no cracks, and that it fits and closes tight.

If there’s any problem with it, get a new one. Make sure the gas cap is tightly closed with three clicks before you go for the test.

6. Fill the tank with premium gasoline.

You don’t want unburned gas anywhere but in the gas tank. Higher octane gas will burn better. You can go back to the “cheap stuff” after the inspection.

7. Add some “dry gas” or other gas additive to your tank.

When you drive the car to warm it up for the test, the additive should help clean the catalytic converter and exhaust system.

Note: Be sure to read the labels for the right additive and follow the instructions.

8. Make sure your tires are at their full air pressure.

The emissions test may include putting your car on the dynamometer. The tester will check it for emissions while driving your car on a spinning cylinder at various speeds. Properly-filled tires will help maintain a more even performance and lower the risk of failure.

9. Arrive at the inspection site with half a tank or less of gasoline.

This can also help prevent any gas getting in places you don’t want it during the emissions inspection. You may want to keep this point in mind when you “gas up” according to tip number six.

10. Drive the car for about half an hour before the test and idle the engine while waiting in line.

The idea is to have the engine warm and operating at its peak fuel-burning efficiency. This will also help mix your additive and get it into the fuel system.

If the “check engine” light stays on, or if following these tips doesn’t get you through the emissions inspection, there are still a couple of things you can do.

A handheld diagnostic scanner can easily turn off the check engine light. Even if the light is off, your vehicle’s computer may still hold diagnostic trouble codes. A decent scanner will also be able to reset these codes.

However, your vehicle may trigger those same codes on the way to the inspection site. Even if it does not trigger the check engine light, you will fail the emissions test when they hook up their scanner to your car’s computer. Your scanner can detect and read trouble codes whether the check engine light is on or not.

The scanner tool can tell you where to look for emissions and engine-performance problems. With it you can check your car engine’s oxygen sensors and many other parameters to find the system and sub-system where the problem lies. Fix the problem and you will be sure to clear the emissions test.

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Source by Mike McArno

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Most of us don’t buy new cars all that often, so it’s no surprise that some people get confused over the descriptions of the various types of cars that are available on the market. Most of the terms used to describe a type of car refer to its body shape, rather than its performance, or other features. If you are thinking of buying a new car, then arm yourself with the facts before you hit the showrooms with this simple and easy to follow guide to the various types of cars and their body shapes.

Sedan

A sedan, which is sometimes called a saloon, is the standard passenger car that has a bonnet at the front, a boot for luggage in the back, and usually four doors. This is one of the most popular types of car and they are ideal for families, as they usually seat four or five people comfortably.

Hatch-back

Hatch-backs are the types of cars that have no rear boot, but they have a rear compartment that can be accessed via a door that swings open at the back. The other feature of this type of car is that rear luggage compartment is not sealed off from the passenger compartment. Hatch-backs are usually smaller cars and they often have only three doors, including the swing door at the back.

Estate

Estate cars, or wagons, are like a larger version of a hatchback with an extended rear compartment for storing luggage. Like a hatchback, this type of cars luggage area is not separated from the passenger compartment and, usually, the rear seats can be folded down to accommodate a greater amount of luggage when it is required. Due to the extended rear compartment, estate cars are normally quite long.

Coupe

A coupe will be quite a small, two door car, and they are usually quite sporty in style too. They will normally only seat two people comfortably, but they might have two very small seats in the rear, but with very limited leg room.

Convertible

Convertibles, sometimes called cabriolets, are the types of cars where the roof can be removed so that it can be driven with the roof open in the summer. They are usually a similar sized car to a coupe style car and they too generally have limited room inside and are not suitable for any more than two people. The roof is often made of soft fabric; hence the term soft top, but more expensive convertibles might have hard tops that are folded back by hydraulics.

M.P.V

The term M.P.V, or multi-purpose vehicle, is usually applied to vehicles that have large bodies, like a van, but it still has both rear and side doors. Examples of M.P.V’s are people carriers, minivans, and multi utility vehicles (M.U.V’s). They can often seat as many as seven people and they are also characterised by being higher off the ground than a saloon type of car.

Pickup

Pickup trucks are the type of vehicle that has a flat-bed open space at the rear of the vehicle for carrying luggage and equipment. They are usually large vehicles, often 4×4, and they are designed to carry heavy loads, as well as people.

Off-Road

An off-road vehicle, such as a Land Rover, or a Jeep, will have been designed to be driven on the roads as well as off them. Typically, they will have a 4×4 drive, and the ability to be driven in very low gears, so that they can cope with muddy and difficult terrain.

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Source by Neil Savin

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For many, contacting a junk car removal service is the best car disposal solution. You can contact a local towing company but you’ll have better results using a nationwide car removal service. Not only is it fast and hassle free this way, but they buy junk cars and pay top dollar for them. Even car scrap yards will not pay as much.

Most local car towing companies are picky and may not accept vehicles in any condition or every make and model. A national service is also more able to help you through the process. They have arrangements with towing companies throughout the United States and Canada. They will buy any vehicle, in absolutely any condition at any location no questions asked.

The main benefit of going with a national car removal company is their ability to pay top dollar for your junk vehicle. Not only do they buy cars and pay well, but you’ll receive a quote for your car over the phone before a car pick up is even scheduled. They’ll line up a buyer for your vehicle, line up vehicle towing to meet your schedule, then pay you.

Here are the main benefits of a national car removal service.

• Fast and reliable service. You know they’re not too busy to pickup your vehicle.
• Any condition, year, make and model are accepted and paid for.
• A title is not required before 1995.
• There’s no charge for pickup or disposal, you actually get paid well.

Here’s how it works. First you have a problem and need to arrange some form of car disposal to get rid of your junk or used car that won’t work, or won’t sell. Next you’re going to look for a junk car removal company that pays cash for junk cars such as the one at the bottom of this article. Once you contact them they’ll ask you a few questions about your car or truck and give you a quote right over the phone. If you accept the quote they’ll send over a car towing company to tow your car and you’ll get paid.

Now that you know how it works, don’t worry about how to get your car to the vehicle salvage yard. Contact the Junk Car Removal service below today and get paid for your car that doesn’t work or won’t sell in any condition.

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Source by Adam D Roy

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The thrill of getting a new car, especially if it is your first one, is definitely incomparable and inexplicable. But the burden of paying for the car is not. This is why many people rely on car financing. Car financing or car loans are perhaps the most common kind of loan today. But despite this, many people still do not know how to shop for these types of loan plans. Here are some ways to get great auto financing plans to help you enjoy your car even more, knowing that you bought your car getting the best deal available.

Know where to shop:

In order to get the lowest interest rates, you need a good credit history. But what if you do not have the best credit history? Worse, what if your credit history is actually bad? Fortunately, there are car financing plans for people with bad credit or no credit history at all. The interest rates may be higher than the standard plans, and the financing plan may require a down payment, but it is definitely better than nothing. Of course, not all dealers allow people with bad credit to get this type of car finance plan, so it is best to look around. The best place to shop for bad credit car financing plans is on the Internet, where you can easily compare prices. Even if your car dealer has an in-house financing department that can accommodate your needs, it is best to search before you settle.

Foresee future cost

Many buyers choose cheap car financing plans upfront, without checking if the plan is indeed cheap. This is because the total cost of the plan may be more than the actual worth of the car, even if you consider interest rates. When shopping for auto financing plans, it is best to go for loans that may not seem so cheap now but can actually help you save money in the long run.

Know your limits

Of course, since we are talking about car financing plans you are not going to pay for the car in full. However, are you sure you can really pay for the car in the long run? It is always best to know your limits financially. Track your budget to see if how much your car finance plan payments would be for the car you would purchase. In a way, this tip compliments the previous one. You should know your financial limits for the long run, possibly until you are done paying for the car loan.

Avoid penalties

Some car financing plans have penalties, but they are often not called “penalties” in the fine print. To understand the contract better, employ the help of a legal expert. Also, choose plans that give you the option to pay extra payments, or pay the entire loan without any penalties of any sort. When choosing a car financing deal, go for the most flexible plans. Your budget is not static, and your financial status can change, for better or worse. You need the flexibility to keep up with your payments.

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Source by Robert Worley

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Market Overview

The car rental industry is a multi-billion dollar sector of the US economy. The US segment of the industry averages about $18.5 billion in revenue a year. Today, there are approximately 1.9 million rental vehicles that service the US segment of the market. In addition, there are many rental agencies besides the industry leaders that subdivide the total revenue, namely Dollar Thrifty, Budget and Vanguard. Unlike other mature service industries, the rental car industry is highly consolidated which naturally puts potential new comers at a cost-disadvantage since they face high input costs with reduced possibility of economies of scale. Moreover, most of the profit is generated by a few firms including Enterprise, Hertz and Avis. For the fiscal year of 2004, Enterprise generated $7.4 billion in total revenue. Hertz came in second position with about $5.2 billion and Avis with $2.97 in revenue.

Level of Integration

The rental car industry faces a completely different environment than it did five years ago. According to Business Travel News, vehicles are being rented until they have accumulated 20,000 to 30,000 miles until they are relegated to the used car industry whereas the turn-around mileage was 12,000 to 15,000 miles five years ago. Because of slow industry growth and narrow profit margin, there is no imminent threat to backward integration within the industry. In fact, among the industry players only Hertz is vertically integrated through Ford.

Scope of Competition

There are many factors that shape the competitive landscape of the car rental industry. Competition comes from two main sources throughout the chain. On the vacation consumer’s end of the spectrum, competition is fierce not only because the market is saturated and well guarded by industry leader Enterprise, but competitors operate at a cost disadvantage along with smaller market shares since Enterprise has established a network of dealers over 90 percent the leisure segment. On the corporate segment, on the other hand, competition is very strong at the airports since that segment is under tight supervision by Hertz. Because the industry underwent a massive economic downfall in recent years, it has upgraded the scale of competition within most of the companies that survived. Competitively speaking, the rental car industry is a war-zone as most rental agencies including Enterprise, Hertz and Avis among the major players engage in a battle of the fittest.

Growth

Over the past five years, most firms have been working towards enhancing their fleet sizes and increasing the level of profitability. Enterprise currently the company with the largest fleet in the US has added 75,000 vehicles to its fleet since 2002 which help increase its number of facilities to 170 at the airports. Hertz, on the other hand, has added 25,000 vehicles and broadened its international presence in 150 counties as opposed to 140 in 2002. In addition, Avis has increased its fleet from 210,000 in 2002 to 220,000 despite recent economic adversities. Over the years following the economic downturn, although most companies throughout the industry were struggling, Enterprise among the industry leaders had been growing steadily. For example, annual sales reached $6.3 in 2001, $6.5 in 2002, $6.9 in 2003 and $7.4 billion in 2004 which translated into a growth rate of 7.2 percent a year for the past four years. Since 2002, the industry has started to regain its footing in the sector as overall sales grew from $17.9 billion to $18.2 billion in 2003. According to industry analysts, the better days of the rental car industry have yet to come. Over the course of the next several years, the industry is expected to experience accelerated growth valued at $20.89 billion each year following 2008 “which equates to a CAGR of 2.7 % [increase] in the 2003-2008 period.”

Distribution

Over the past few years the rental car industry has made a great deal of progress to facilitate it distribution processes. Today, there are approximately 19,000 rental locations yielding about 1.9 million rental cars in the US. Because of the increasingly abundant number of car rental locations in the US, strategic and tactical approaches are taken into account in order to insure proper distribution throughout the industry. Distribution takes place within two interrelated segments. On the corporate market, the cars are distributed to airports and hotel surroundings. On the leisure segment, on the other hand, cars are distributed to agency owned facilities that are conveniently located within most major roads and metropolitan areas.

In the past, managers of rental car companies used to rely on gut-feelings or intuitive guesses to make decisions about how many cars to have in a particular fleet or the utilization level and performance standards of keeping certain cars in one fleet. With that methodology, it was very difficult to maintain a level of balance that would satisfy consumer demand and the desired level of profitability. The distribution process is fairly simple throughout the industry. To begin with, managers must determine the number of cars that must be on inventory on a daily basis. Because a very noticeable problem arises when too many or not enough cars are available, most car rental companies including Hertz, Enterprise and Avis, use a “pool” which is a group of independent rental facilities that share a fleet of vehicles. Basically, with the pools in place, rental locations operate more efficiently since they reduce the risk of low inventory if not eliminate rental car shortages.

Market Segmentation

Most companies throughout the chain make a profit based of the type of cars that are rented. The rental cars are categorized into economy, compact, intermediate, premium and luxury. Among the five categories, the economy sector yields the most profit. For instance, the economy segment by itself is responsible for 37.7 percent of the total market revenue in 2004. In addition, the compact segment accounted for 32.3 percent of overall revenue. The rest of the other categories covers the remaining 30 percent for the US segment.

Historical Levels of Profitability

The overall profitability of the car rental industry has been shrinking in recent years. Over the past five years, the industry has been struggling just like the rest of the travel industry. In fact, between the years 2001 and 2003 the US market has experienced a moderate reduction in the level of profitability. Specifically, revenue fell from $19.4 billion in 2000 to $18.2 billion in 2001. Subsequently, the overall industry revenue eroded further to $17.9 billion in 2002; an amount that is minimally higher than $17.7 billion which is the overall revenue for the year 1999. In 2003, the industry experienced a barely noticeable increase which brought profit to $18.2 billion. As a result of the economic downturn in recent years, some of the smaller players that were highly dependent on the airline industry have done a great deal of strategy realignments as a way of preparing their companies to cope with eventual economic adversities that may surround the industry. For the year 2004, on the other hand, the economic situation of most firms have gradually improved throughout the industry since most rental agencies have returned far greater profits relative to the anterior years. For instance, Enterprise realized revenues of $7.4 billion; Hertz returned revenues of $5.2 billion and Avis with $2.9 billion in revenue for the fiscal year of 2004. According to industry analysts, the rental car industry is expected to experience steady growth of 2.6 percent in revenue over the next several years which translates into an increase in profit.

Competitive Rivalry Among Sellers

There are many factors that drive competition within the car rental industry. Over the past few years, broadening fleet sizes and increasing profitability has been the focus of most companies within the car rental industry. Enterprise, Hertz and Avis among the leaders have been growing both in sales and fleet sizes. In addition, competition intensifies as firms are constantly trying to improve their current conditions and offer more to consumers. Enterprise has nearly doubled its fleet size since 1993 to approximately 600,000 cars today. Because the industry operates on such narrow profit margins, price competition is not a factor; however, most companies are actively involved in creating values and providing a range of amenities from technological gadgets to even free rental to satisfy customers. Hertz, for example, integrates its Never-Lost GPS system within its cars. Enterprise, on the other hand, uses sophisticated yield management software to manage its fleets.

Finally, Avis uses its OnStar and Skynet system to better serve the consumer base and offers free weekend rental if a customer rents a car for five consecutive days Moreover, the consumer base of the rental car industry has relatively low to no switching cost. Conversely, rental agencies face high fixed operating costs including property rental, insurance and maintenance. Consequently, rental agencies are sensitively pricing there rental cars just to recover operating costs and adequately meet their customers demands. Furthermore, because the industry experienced slow growth in recent years due to economic stagnation that resulted in a massive decline in both corporate travel and the leisure sector, most companies including the industry leaders are aggressively trying to reposition their firms by gradually lessening the dependency level on the airline industry and regaining their footing in the leisure competitive arena.

The Potential Entry of new Competitors

Entering the car rental industry puts new comers at a serious disadvantage. Over the past few years following the economic downturn of 2001, most major rental companies have started increasing their market shares in the vacation sector of the industry as a way of insuring stability and lowering the level of dependency between the airline and the car rental industry. While this trend has engendered long term success for the existing firms, it has heightened the competitive landscape for new comers. Because of the severity of competition, existing firms such as Enterprise, Hertz and Avis carefully monitor their competitive radars to anticipate Sharpe retaliatory strikes against new entrants. Another barrier to entry is created because of the saturation level of the industry.

For example, Enterprise has taken the first mover advantage with its 6000 facilities by saturating the leisure segment thereby placing not only high restrictions on the most common distribution channels, but also high resource requirements for new firms. Today, Enterprise has a rental location within 15 miles of 90 percent of the US population. Because of the network of dealers Enterprise has established around the nation, it has become relatively stable, more recession proof and most importantly, less reliant on the airline industry compared to its competitors. Hertz, on the other hand, is utilizing the full spectrum of its 7200 stores to secure its position in the marketplace. Basically, the emergence of most of the industry leaders into the leisure market not only drives rivalry, but also it varies directly with the level of complexity of entering the car rental industry.

The Threat of Substitute

There are many substitutes available for the car rental industry. From a technological standpoint, renting a car to go the distance for a meeting is a less attractive alternative as opposed to video conferencing, virtual teams and collaboration software with which a company can immediately setup a meeting with its employees from anywhere around the world at a cheaper cost. In addition, there are other alternatives including taking a cab which is a satisfactory substitute relative to quality and switching cost, but it may not be as attractively priced as a rental car for the course of a day or more. While public transportation is the most cost efficient of the alternatives, it is more costly in terms of the process and time it takes to reach one’s destination. Finally, because flying offers convenience, speed and performance, it is a very enticing substitute; however, it is an unattractive alternative in terms of price relative to renting a car. On the business segment, car rental agencies have more protection against substitutes since many companies have implemented travel policies that establish the parameters of when renting a car or using a substitute is the best course of action.

According to Tracy Esch, an Advantage director of marketing operations, her company rents cars up to a 200-mile trip before considering an alternative. Basically, the threat of substitute is reasonably low in the car rental industry since the effects the substitute products have do not pose a significant threat of profit erosion throughout the industry.

The Bargaining Power of Suppliers

Supplier power is low in the car rental industry. Because of the availability of substitutes and the level of competition, suppliers do not have a great deal of influence in the terms and conditions of supplying the rental cars. Because the rental cars are usually purchased in bulk, rental car agents have significant influence over the terms of the sale since they possess the ability to play one supplier against another to lower the sales price. Another factor that reduces supplier power is the absence of switching cost. That is, buyers are not affected from purchasing from one supplier over another and most importantly, changing to different supplier’s products is barely noticeable and does not affect consumer’s rental choices.

The Bargaining Power of Buyers

While the leisure sector has little or no power, the business segment possesses a significant amount of influence in the car rental industry. An interesting trend that is currently underway throughout the industry is forcing car rental companies to adapt to the needs of corporate travelers. This trend significantly reduces supplier power or the rental firms’ power and increases corporate buyer power since the business segment is excruciatingly price sensitive, well informed about the industry’s price structure, purchase in larger quantities and they use the internet to force lower prices. Vacation buyers, on the other hand, have less influence over the rental terms. Because vacationers are usually less price sensitive, purchase in lesser amounts or purchase more infrequently, they have weak bargaining power.

Five Forces

Today the car rental industry is facing a completely different environment than it did five years ago. Competitively speaking, the revolution of the five forces around the car rental industry exerts some strong economic pressure that has significantly tarnished the competitive attractiveness of the industry. As a result of the economic downturn in recent years, many companies went under namely Budget and the Vanguard Group because their business infrastructure succumbed to the untenability of the competitive environment. Today, very few firms including Enterprise, Hertz and Avis return a slightly above-average revenue compared to the rest of the industry. Realistically speaking, the car rental sector is not a very attractive industry because of the level of competition, the barriers to entry and the competitive pressure from the substitute firms.

Strategic Group Mapping

As a moderately concentrated sector, there is a clear hierarchy in the car rental industry. From an economic standpoint, disparities exist from a number of dimensions including revenue, fleet size and the market size each firm holds in the market place. For instance, Enterprise dominates the industry with a fleet size of approximately 600,000 vehicles along with its market size and its level of profitability. Hertz comes in second position with its number of market shares and fleet volume. In addition, Avis ranks third on the map. Avis is among one of the companies that is having issues recovering its revenue margins from prior to the economic downturn. For instance, in 2000 Avis returned revenues of approximately $4.23 billion. Over the course of the next several years following 2000, the revenue of Avis has been significantly lower than that of 2000. As a way of reducing uncertainty most companies are gradually lessening the level of dependency on the airline industry and emerging the leisure market. This trend may not be in the best interest of Hertz since its business strategy is intricately linked to the airports.

Key Success Factors

There are many key success factors that drive profitability throughout the car rental industry. Capacity utilization is one of the factors that determines success in the industry. Because rental firms experience loss of revenue when there are either too few or too many cars sitting in their lots, it is of paramount importance to efficiently manage the fleets. This success factor represents a big strength for the industry since it lowers if not completely eliminates the possibly of running short on rental cars. Efficient distribution is another factor that keeps the industry profitable. Despite the positive relationship between fleet sizes and the level of profitability, firms are constantly growing their fleet sizes because of the competitive forces that surround the industry. In addition, convenience is one of the crucial attributes by which consumers select rental firms. That is, car rental consumers are more prone to renting cars from firms that have convenient rental and drop off locations. Another key success factor that is common among competing firms is the integration of technology in their business processes. Through technology, for instance, the car rental companies create ways to meet consumer demand by making renting a car a very agreeable ordeal by adding the convenience of online rental among other alternatives. Furthermore, firms have integrated navigation systems along with roadside assistance to offer customers the piece of mind when renting cars.

Industry Attractiveness

There are many factors that impact the attractiveness of the car rental industry. Because the industry is moderately concentrated, it puts new market entrants at a disadvantage. That is, its low concentration represents a natural barrier to entering the industry as it allows existing firm to anticipate sharp retaliations against new entrants. Because of the risks associated with entering the industry among other factors, it is not a very attractive sector of the marketplace. From a competitive standpoint, the leisure market is 90 percent saturated because of the active efforts of Enterprise to dominate this sector of the market. On the other hand, the airport terminals are heavily guarded by Hertz. Realistically speaking, entry in the industry offers low profitability relative to the costs and risks associated. For most consumers, the main determining factors of choosing one company over another are price and convenience. Because of this reason, rental firms are very circumspect about setting their rates and that generally force even the industry major players in the position of offering more to the consumers for less just to remain competitive. Hertz, for example, offers wireless internet to its customers just to add more convenience to their travel plans. Avis on the other hand, offers free weekend specials if a customer rents a car for five consecutive weekdays. Based on the impact of the five forces, the car rental sector is not a very attractive industry to potential new market entrants.

Conclusion

The rental car industry is in a state of recovery. Although it may seem like the industry is performing well financially, it is nonetheless gradually regaining its footing relative to its actual economic position within the last five years. As a way of insuring profitability, besides seeking market shares and stability, most companies throughout the chain have a common goal that deals with lowering the level of dependency on the airline industry and moving toward the leisure segment. This state of motion has engendered some fierce competition among industry competitors as they attempt to defend their market shares. From a futuristic perspective, the better days of the car rental industry have yet to come. As the level of profitability increases, I believe that most of the industry leaders including Enterprise, Hertz and Avis will be bounded by the economic and competitive barriers of mobility of their strategic groups and new comers will have a better chance of infiltrating and realizing success in the car rental industry.

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Source by Rodrigue Monestime