When booking an airline ticket, you know that price can vary based on demand. With Wynne's RentalResult software, you can manage your rates based on hour utilization data giving you total confidence that you really are maximizing revenue on your most utilized assets.
With simple user-defined parameters, the system automatically increases or decreases rates based on utilization of a product across a branch or division. The suggested rate for the same product code can differ based on the number of assets on rent. This allows you to increase the rates on products at times of high demand and lower the rates during quiet periods. This helps you get the most revenue from your most sought after assets while at the same time encouraging utilization of your least used assets.
This all works in conjunction with standard system rate sheets, so if a customer has their own pre-negotiated rates than those negotiated rates will take precedence over the on-demand pricing. Even when no customer specific rates exist, the system takes into account recent quotes and contracts for the customer when providing suggested rates allowing for complete control and consistency where needed.
You don’t have to switch on utilization-based pricing for all your locations or even all your equipment. Instead, you can test in specific market areas for specific groups of equipment. You can also switch the feature off at will – perhaps if a natural disaster strikes you’d prefer not to manage your rates based on utilization.
Of course, there is a question about whether you want to price based on utilization. For some rental companies this will not be a useful tool, especially if you rely on salespeople to negotiate on the fly. Automating the process even slightly can cause a great deal of tension. However, it may be an interesting experiment to try in a small, isolated marketplace to find out whether your average rates can be increased without causing trauma amongst your customers or your sales team.
With more and more businesses shifting to non-personal channels these days--whether this is via the web, mobile apps or other technologies--exploring other ways to manage your charging may well be an interesting concept for the future.
Written by Helen Sowerby, Director of Business Development
Photo by Gus Ruballo