There are many costs associated with operating a rental company. To ensure that you recoup these costs and maximize revenue streams, it’s important that your rental software has the ability to track and report these expenses. Furthermore, you want it to be able to assign the appropriate ancillary fees to an invoice so that your customers understand what they’re paying for, and why they’re paying for it.
Here are a few examples of how you can use this type of small business inventory software to boost your bottom line…
1. Charge by Customer Type
Depending on the type of rental equipment you deal in, your traffic will likely come from a mix of contractors and walk-up sales. When it comes to the former, you can encourage repeat business by providing recurring customers with a discounted rate. Rental software will allow you to do this easily by choosing the type of customer you’re renting to on the invoice.
Easier still, you can assign the customer type or discount level to an individual account. When that client walks through your doors, you can quickly find them in your system and the price level will automatically be set.
2. Damage Waivers
It is inevitable that your rental equipment will come back in worse shape than it left your shop. Equipment damage can be the result of several factors:
- Ongoing wear and tear
- Accidental damage
- Operator inexperience
- Misuse of equipment
A damage waiver is an effective means of generating revenue to offset the costs associated with repairing and/or replacing your equipment. It also provides customers peace of mind that, if something goes wrong during the rental period, they’ll be covered (so long as they’re using the equipment improperly, and for its intended purpose).
3. Add-on Sales
Also known as upselling, this is an opportunity for your staff to increase profits at the sales counter. Whenever you’re renting out a piece of equipment, you can configure your small business inventory software to prompt staff to suggest additional items that might be of use to the customer. This could include:
- Larger, more feature-laden equipment models
- Consumables (fuel, lubricants etc.)
- Protective gear (safety glasses, gloves etc.)
If you offer an equipment delivery service, your transportation costs can really start to add up due to things like:
- Fuel costs
- Vehicle maintenance and depreciation
- Vehicle insurance
Rental software allows you to incorporate delivery fees to account for these costs based on:
- Distance travelled
- Size of vehicle
- Type of vehicle
- Time in the field
You could also levy additional delivery fees for customers who require emergency or after-hours drop-offs.
If you’re a retailer looking to incorporate equipment rentals into your business operation, read: Using Inventory Management Software to Add Rentals to Your Business.
For rental software that helps you manage your expenses and maximize profitability, talk to Windward Software. From user-friendly point of sale to stringent inventory control, our System Five program does it all.