Old Lyme business that leases generators gives customers power, 'peace of mind'

February 28, 2015 11:00 pm • Last Updated: February 28, 2015 12:48 am

By By LEE HOWARD Day Staff Writer

Irving Steel, director of digital marketing for Generators on Demand in Old Lyme, talks about the 3-year-old company while in the warehouse where the generators that they have in stock are stored.

Old Lyme - Ron Swaney ran a lawn-care company for many years, but he always had in the back of his mind other business opportunities.

Swaney eventually became known as well for renting out equipment, including backup generators to power a home in case of a power outage. But he didn't think of equipment rental as a business by itself until a casual conversation with one of his customers planted an idea.

"Soon homes, businesses and government will all have generators," Swaney recalled his customer telling him. "It is the future."

So Swaney latched onto an idea: Why not offer backup electricity in an affordable monthly package rather than charging a large one-time fee?

Swaney's inspiration three years ago has morphed into Generators on Demand, a business that cashed in on homeowner angst after Superstorm Sandy in 2012 and a subsequent series of winter storms that cut off electricity in parts of the region for days at a time.

"It gives people peace of mind that they'll have power in a storm," said Irving Steel, director of digital marketing, during a tour of the company's headquarters off Buttonball Road, not far from The Black Hall Club golf course. "It's like an insurance policy."

Business owners, the government and the elderly have been particularly inclined to sign up for the company's five-year lease program.

"It's like leasing a car," Steel said.

Only in the case of Generators on Demand, customers essentially have the car driven for them because the company does all the installation and maintenance work as well as pulling all the proper permits. For most residential properties, the cost is $95 a month, Steel said, and service calls are available 24/7 every day of the year if there are any problems.

"Lease is our specialty," Steel said. "It's our niche that other companies are not providing."

One of the company's most important attributes, he added, is that Generators on Demand keeps a large number of machines in stock. During a tour of its warehouse last month right after one in a series of winter storms, Steel showed off dozens of stationary units piled high in boxes but only about a half dozen portable machines that are the most popular for last-minute installations - many of which had occurred in the days leading up to the snowstorm.

"If anything happens, we have everything in stock," Steel said.

He said this has proved a godsend for homeowners during the past few storms when places like Home Depot and Lowe's have had to direct customers to Generators on Demand for quick installations.

"It's like life and death for these people," Steel said, pointing to some elderly folks who need power for oxygen machines and other critical equipment.

And, he added, if a generator breaks down the company has plenty of replacement parts and equipment in stock to make a quick fix - not to mention five trucks and 10 employees. The generators are warrantied for a full five years, meaning if anything happens the customer will get a new generator.

""People know us," Steel said. "We're not a big-box store. We're a generator-service company that sells generators."

Generators on Demand covers a wide geographic range, including coastal Connecticut, Long Island and Block Island. It specializes in installations in flood-plain areas, and Swaney has developed a patent-pending snow riser that the company manufactures in one of the three buildings it owns, boosting the height of generators to up to 4 feet off the ground - with customizable options up to 18 feet tall.

Steel said the company has more than 150 generator leases outstanding. About 60 percent of the company's business is with commercial or government enterprises, he said, while about 40 percent is residential.

But Steel sees much more growth ahead, figuring that 95 percent of homeowners in the region are still without generators. The generator business nationwide is projected to hit the $75 billion plateau this year, he said.

"It's still very new," he said. "But more and more governments are making it part of their emergency planning."

l.howard@theday.com

Twitter: @KingstonLeeHow

Some of the different types of generators sit in the warehouse at Generators on Demand in Old Lyme.