3 tips to increase your rental revenue
Most equipment dealers have realized that trend in renting equipment has increased significantly in the past few years and is still growing at a drastic rate. So, the big question arises: “Are you geared up for riding this new wave and increase your profitability?” Let me sketch a picture first on how the traditional or manual rental business processes are currently working in most of these equipment organizations.
The old-fashioned way
In a daily routine, rental departments receive multiple inquiries via phone calls and e-mails, the representative notes the customer’s requirements like which equipment they need, what is the timeline of expected delivery and where does it need to be delivered. Usually, after the call, its determined that the rental asset they require is either already rented or currently available at a different location, therefore requiring additional time to deliver. In some cases, the company ends up sub-renting to fulfill customer expectations.
The other issue that they commonly face is the billing cycle. Keeping a manual track is difficult, time consuming with increased chances of error. There are many cases in which the equipment is staying over the contract date, maintenance records are missing or not updated and that there isn’t complete detail on how much revenue each asset is generating.
Today, I will highlight a few tips derived of Dysel’s Equipment Life Cycle software functionalities. These can increase your business profitability significantly and make your rental department more efficient.
1. Real-time asset management:
Imagine the accurate real-time data of your rental assets. When your representatives receive a call for equipment rental, they can access the equipment’s exact status from all locations, fleet telematics and customer information. With a few clicks, they can convert that inquiry into a contract. In addition, you can send the field tech to repair the equipment at a client’s location and open work orders or invoices in real-time. If sub-renting is required, the system will highlight the rental margin and also track the equipment as it does with your own inventory.
2. Optimized Equipment Utilization:
The most challenging situation that your finance department deals with is the inventory management as this disturbs the cash flow. Equipment life cycle enhances the visibility of your business and customer insight. You can track KPI’s of your equipment, make better decision on inventory, parts and maintenance. The built-in business intelligence will lead you to identify trends with equipment that is sold or rented so you can develop accurate forecasting reports and make informed investment decisions.
3. Automated Billing:
With the automation of all your rental billing, you have the choice to put billings on a daily or periodic routine. You can also configure rates for individual clients or determine a group discounted rate for your regular clients. You will get push notifications if the contract is overdue or equipment needs maintenance. With Dysel’s Equipment Life Cycle solution, your company will save time and resources, manage and maintain inventory efficiently, increase client satisfaction and grow the business.
Noor Shaikh is Marketing & Sales Executive in North America at Dysel and knows all about the challenges equipment dealerships encounter when it comes to ERP software.