By Tim Johnson, Director of Customer Care
When I managed a rental store out in Oceanside, California, my job boiled down to a single goal: boosting our bottom line. Since those days, I’ve helped thousands of businesses use rental software to maximize their company's profits.
In this industry, even small wins can add up over the course of the year - but you have to be proactive about identifying trends and using them to your advantage. In this blog post, I explore three reports or screens that any rental company owner or manager should monitor on at least a daily basis to do exactly that. No matter what rental software you use, making a habit of “sealing leaks” can help you make sure your money stays where it should be—in your wallet.
Giving experienced employees the latitude to perform rate overrides is important. If your customer calls and says his machine stopped working an hour after delivery, it would be the right thing to do to discount the rate for the time he was charged for a machine he couldn't use. However, while you don’t want to tighten up security so much that your employees can’t do their jobs effectively, you also don’t want them to get carried away slashing rates and eating into your revenue. In my personal experience, I found that by simply asking my employees questions about overrides they had entered through the week, they were 80% less likely to use them. Once your employees realize override reports are monitored regularly, they are likely only to provide discounts in situations when they are truly in the best interest of the business.
Keeping up with delinquencies is a no-brainer, although many rental operators let overdue rentals slip through the cracks. It’s considerably easier to recover equipment (and get it back out for rent to a paying customer!) if you contact the current renter immediately. With each passing day, you are more likely to lose the equipment and have to say goodbye to an asset you are no longer making money on. Keeping track of delinquencies should be easy—the only part that can be time-consuming is following up with your customers.
If you’ve subrented equipment, your profit margin is probably only in the ballpark of 20 to 30 percent. If you don’t keep close tabs on that equipment and return it just one day late, any profit you’ve made has already evaporated. Your rental software should make it easy for you to monitor subrentals, whether through reports or screens. Let’s say your customer rents a dozer that comes from XYZ Rentals. In your software, that piece of equipment will be tied to the contract. When that contract comes back, your system should inform you that you have subrental items that need to be returned to XYZ Rentals as soon as possible. It doesn’t take much effort and you can make sure your subrentals remain profitable.
Unnecessary rate overrides, delinquencies, and overdue subrentals can add up over the course of the year and take a real toll on your bottom line. Through reports or dedicated screens, rental software makes it easy to spot issues and take preventative action.
Ready for a better approach to equipment analytics? InTempo is designed to help you track every area of your business - from open reservations to unpaid invoices. To see how we can help you make your rental business more profitable, contact us today.