Minnesota Family Owned Business Continues Growth & Diversification

Good things continue to happen for Nelson Sanitation and Rental as it serves a growing metro Twin Cities area.
Minnesota Family Owned Business Continues Growth & Diversification
The Nelson Sanitation & Rental Inc., team includes, from left, Randy Symanietz, Tyler Nelson, Lenny Meyer and Derrick Nelson.

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An urban-to-rural population of about 200,000 in the northern reaches of the Minneapolis-St. Paul metro area has proven the perfect location for Nelson Sanitation & Rental Inc. to take root and grow over 30 years.

Jerome Nelson started the one-man pumping business in tiny Rice, Minn., in 1979, but through hard work, shrewd decision-making and a burgeoning market for its services, the company has enjoyed substantial growth. Second-generation owner Derrick Nelson recognizes a broad base of potential markets – construction, entertainment, recreation and residential – and sees a bright future through technology and further diversification.

LONG DAYS, HARD WORK

Jerome Nelson was motivated to start the business during a layoff from his railroad job. A friend who owned a septic service company suggested he start his own business, so Jerome bought a 1959 International truck and outfitted it with a new tank and a gas-powered trash pump. His business grew by word of mouth, and for a few years he worked for both the railroad and himself. That meant many long days – and some unique requests.

“We used to pump a lot of dairy barns,” Jerome recalls. “Usually it was at 5 a.m. in the winter, and a farmer would call that a cow kicked off a water cup and the water flooded the gutters.” Barn cleaners were designed to handle solids, not liquids, so he would pump out the gutters.

The septic business grew as more people moved from city to country life – and so did the after-hours workload. And as licensing requirements and regulations mounted over the years, Nelson secured the necessary training and invested in new equipment. Portable sanitation was just starting to mature as a business model when the elder Nelson purchased four restrooms in 1994 as a way to earn extra money to put three sons through college.

Two sons went to college and on to new careers. Derrick, now 30, was the youngest and grew up with the business and stayed with it. “I started when I was 16, and we only had 40 to 50 units,” he recalls.

Jerome handled the septic side of the business. Derrick helped pump tanks in the fall and took care of the portable restrooms. Strictly providing pumping services, Nelson’s refers repairs and new system installations to other companies. Jerome retired in 2011, but continues to help out in the summer, delivering restrooms and pumping septic tanks whenever he’s needed.

GROW AND DIVERSIFY

In 2010, Derrick purchased the portable restroom division from a local rental company, and a year later he invested in new portable storage containers. By 2012, he recognized he had to cut back or grow. He grew by hiring a full-time manager to help with sales and office work. It was a good decision that boosted business.

Nelson has always been proactive. Initially the portable restroom rentals went to area parks and weekend events. “I went out there and started getting city bids, then construction companies,” Nelson says. “We were competitive with new restrooms, and we made sure we cleaned the restrooms.”

He watches for opportunities and reads local newspapers to find events and new construction. Nelson has established contracts with many construction companies, and about 60 percent of the restrooms go to construction sites. He also contracts with city celebrations and large events. With all the marketing, the company has grown to keep an inventory of 900 restrooms.

GOOD WORKERS, CLEAN FLEET

Quality starts with good equipment and clean equipment, according to Nelson. And employees understand the company’s high standard for personal and equipment appearance, timeliness and quality work. Nelson makes random checks to make sure standards are met. By offering competitive wages, along with health and retirement benefits, the company has little turnover. The full-time workers have been with the company five years or more.

To make their work easier Nelson invests in up-to-date equipment.

Most of the company’s restrooms are Satellite Industries Tufway models equipped with hand sanitizers. They also carry High Tech II restrooms, sinks including The Breeze, The Wave, and Handistand, and 300-gallon holding tanks, all from Satellite. The used restrooms he purchased from the rental business are all green – PolyJohn Enterprises and Satellite units.

Nelson and employees fabricated frames to transform standard units into what they call the “Flyer.” The Flyer units are moved by crane and used by roofing and construction companies working on multistory buildings. The St. Cloud Hospital rented 25 units during a remodel/expansion project.

Nelson’s has an inventory of 20-foot and 40-foot storage containers. Contractors use them to keep construction sites clean and to prevent thefts of tools and materials such as copper. A 2003 Landoll Corporation trailer and 2003 Volvo semi tractor transport the containers. He also uses the trailer to move skid-steers and large construction equipment as an extra service.

The fleet of vacuum trucks includes two for septic pumping: a 2004 International 4300 with a 2,800-gallon steel tank from Engle Fabrication LLC, and a 1999 International 4900 with a Satellite 2,000-gallon steel tank, both with Masport pumps.

“I plan to buy another truck to cut back on overtime,” Nelson adds. With one more route, workers will have more reasonable hours, and customers will have their septic tanks pumped in a timely manner.

The trucks for portable sanitation service include: three 2008 Ford F-550 trucks from Satellite with 650-gallon waste/300-gallon freshwater steel tanks, and a 2004 Isuzu truck with a 650-gallon slide-in, steel tank from Imperial Industries. All the trucks have Masport pumps.

An assortment of locally fabricated trailers transport four, eight, 14 and 20 portable restrooms.

The fleet will have a new home on 5 acres in Rice, just off the main highway. The business is outgrowing the current shop on its 1 1/2-acre lot. Nelson purchased the larger acreage and plans to build a much larger shop and office.

HIGH TECH

Besides cleanliness, Nelson appreciates technology. In 2005, he purchased laptop computers and installed a GPS program developed by his computer programmer brother Chris for the restroom service trucks, so drivers have each day’s routes mapped in front of them. More recently he upgraded with Clear Computing to benefit from the software’s full range of services.

“You think you know the fastest route, but when we switched over to GPS we saved 30 to 40 miles on every route,” he says. “I was surprised.”

To promote the business, he and Chris designed a website in 2005. In 2011 they made several upgrades, including a user-friendly shopping cart. Potential customers can view the restrooms, sinks and storage containers and click on the models and numbers they want to get an itemized quote.

“It works really well and gives us the edge a little more,” he says. Besides the company’s presence online, Nelson continues with traditional advertising in the phone book and newspapers.

BUILDING PROFESSIONALISM

The business has changed greatly since Jerome Nelson started out nearly 35 years ago.

“Back 20 or 30 years ago, people had old, rickety trucks and they just pulled in and pumped septics,” Derrick Nelson says. “Now everything is treated. We’ve got clean, knowledgeable people out there. We’ve got good trucks. We give people pointers on water use and everything else.”

Between quality service, technology and office help, Nelson expects the company to continue to grow and “to change the way people view the septic service business.”



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