Thriving in the Equipment Rental Industry: Effective Pricing is the Key

The equipment rental and leasing industry is a flourishing sector. Demand is on the rise and so is competition. Customers know they have choices, and they are looking for companies that can provide the quality they demand at a price they can afford.

Because customers have more choices, businesses must offer more options. As a result, some companies in the rental segment may struggle to manage different rental pricing models. To compete in the rental industry, you need a solution that helps you manage your rental business efficiently despite the array of rental pricing models and constantly changing inventory.

What about rental options?

Some rentals are fairly straightforward. A basic model allows customers to rent equipment and pay by the hour, day, or week for the short term. In other cases, you might have a low and high day rate based on the duration. This means that when you rent for two days, you pay a higher day rate than when you are renting the same equipment for four days. Rates improve for a long-term lease. The longer you have the equipment, the lower your day rate.

Do you charge based on time or consumption? Do you have a lease-to-own option? All these variables need to be tracked.

Some rental models add other factors that could include a warranty, transportation, and insurance. A typical example is in the car rental industry where the car rental helpdesk offers the options to add extra insurances and warranties in addition to child seats and navigational devices.

It’s interesting that while renters demand transparency about the cost of individual items or add-ons,  they still want a single price for the whole package. So, your invoicing must show a single total price with a breakdown of elements included.

Your business technology must provide the tools you need to easily tailor your offerings, change schedules, and allow you to introduce new models, as well as provide accuracy and transparency into your invoicing.

Microsoft Dynamics 365 is a highly advanced and flexible ERP solution that addresses these and other challenges faced by rental firms.

Connect all of your operations with one centralized solution to transform your rental business with modern technology – powerful, integrated Microsoft Dynamics software with deep rental management functionality that can manage all aspects of your business.

If yours is an equipment rental firm and you’re ready to make the move to a modern, cloud-based ERP such as Microsoft Dynamics 365, contact our experts at Western Computer and let’s talk about how to make it happen.