Thriving in the rental industry: What you need to know about pricing

May 31 2019

The rental and lease industry is a flourishing sector, and the demand for equipment rentals is on the rise. While this demand impacts positively on the companies in the industry, it can also pose issues for customer satisfaction.  

Today the rental and lease industry includes an array of options as customer demands keep evolving. As a result, many companies in the rental segment are struggling to manage different rental pricing models. As a player in the rental industry, you need a solution that helps you manage your rental business efficiently despite the array of rental pricing models.

Rental offerings change rapidly

A basic check of the models in today's rental industry would show you most are pretty basic. One of the most basic models lets customers rent equipment and pay an hourly, daily, or weekly rate for the short term. In other cases, it's common to 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.

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 navigation devices.

Customers increasingly seek transparency while still wanting a single price for the whole package. Consequently, rentals should have a single charge but with a break-up of the pricing structure. Additionally, the rental price should include all other elements in the single price by default.

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About Michiel Toppers

Michiel Toppers is the product management director at To-Increase, a certified Microsoft ISV Partner focused on meeting end-to-end needs of equipment rental, leasing, services, manufacturing and food companies. Michiel is responsible for the development of the company’s strategy and for delivering high-quality service to partners, international clients and prospects. With more than 11 years’ experience, he is an expert in the field of IoT, business intelligence, cloud services, Microsoft Dynamics 365 (ERP) and AX. He has written several blogs about the latest ERP trends, rental and leasing industry. You can find his work here.

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