Guest Advice
John Campanelli

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Leading a nationwide business was not new to me, but the rental business was, and I knew I needed to understand the personalities and history that drove this industry. I hit the ground running at Classic Party Rentals, and that helped the learning process. Classic, and the industry in which it operates, is growing at a rapid pace, largely due to the effects of emerging ‘Centers of Excellence’ and the party planning profession. The last 24 months have been an amazing adventure. Hopefully learning about our struggles and successes will give insight into the state of the rental industry and its future.

Growing Pains

One of my first tasks at Classic was to ensure the full integration of Regal Rents and Tri-Rentals – our newest locations – into the existing Classic Party Rentals network. As we quickly learned, this first task was accomplished by following the strategies outlined below.

We were also intent on growing Classic’s tent and structure inventory and capabilities, as we knew that component of the industry was tremendously important. With tents and other semi-permanent structures, open areas such as parking lots, grass fields or otherwise unusable land can be identified as worthy alternatives for affordable, first-class event facilities. We began looking at how we could accomplish that goal, and now – two years later – Classic Tents and Prime Event Group are significant contributors to our network. Having structural divisions on both coasts allow us to more effectively serve our clients around the country.

Secrets of Success

Ultimately, success in this industry hinges upon inventory and service. With a deep and broad product offering and knowledgeable sales, installation and management personnel, nearly any challenge can be surmounted. Last-minute changes or inclement weather are easier to overcome when creativity, flexibility and adaptability are on your side.

At Classic, we’ve identified three important guidelines for successful growth. First, we’ve placed importance on retaining geographic roots and maintaining local market knowledge and expertise, meaning all our locations have stayed loyal to their original, local customer base. Second, we’ve strived to be the most accessible rental company in each market we serve, and for each customer in that market. In order to do that, we’ve provided support for each location with a nation-wide network of resources so that we can meet or exceed our commitments (this is what we call a ‘Center of Excellence’). Finally, we’ve held our standards of expansion to an extremely high level. We’ll only grow our network by adding exemplary rental companies that take pride in their trade and possess a reputation for great service.

Accordingly, we’ve made it a priority to retain management, sales consultants, customer service representatives, drivers and operations personnel at each of our new locations. This has led to high customer retention. Once the service is in place, we focus our attention on the product itself.

Looking Ahead

As the growth continues, a major challenge facing our company and industry is communication. With more and more employees, clients and business partners, the need for effective communication is imperative in order to maintain our high standards of success. In other words, the spotlight has gotten bigger, and now the challenge is keeping it bright. One of our solutions was a central marketing agency, to help streamline and professionalize communications between our 18 locations and our customers.

In the last year alone, the company has grown by over $80 million, seven locations and four states, and the rest of the industry has boomed as well. The trend will continue. The industry is largely driven by the celebration of life events; and as Baby Boomers – the planet’s largest generation – continue to age and have their own children, the need for weddings, birthday parties, retirement gatherings and other milestone celebrations increases.

There are several very natural population trends that favor our industry right now, and our major markets – the South and Southwest U.S. – are seeing the most significant growth. A thriving economy, more disposable income and the emergence of the extravagant party planner will continue to allow people to celebrate more lavishly than ever.

In September, John Campanelli celebrated his two-year anniversary as CEO of El Segundo, Calif.-based Classic Party Rentals. During his 24 months at the helm of the organization, Campanelli has guided Classic through the acquisitions of six competitors, and, with the Classic team, won Event Solutions’ 2006 Rental Company of the Year award. Contact: jcampanelli@classicpartyrentals.com.

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