One of the most complicated aspects of the equipment rental business is that of pricing of rentals and the agreements you have with customers (current, prospective, vendors). Imagine a situation where a customer changes a rental asset in the middle of his rental period.
Or if the equipment a prospect customer requires is not available with you, which means you sub-rent it from a third-party vendor and rent it out to your customer. Such a situation can become more complicated when the customer in question is renting for its group companies. The sheer number of agreements, pricing arrangements that you need to make would go up.
At STAEDEAN, we have customers seeking help in managing their pricing and agreements. Our advice to them is to find the right equipment rental software for all their needs. Your equipment rental ERP software solution can help you at this stage and throw light on how to manage the increasingly complex situation due to pricing and agreements.
How does equipment rental software help you manage rental agreements?
Your equipment rental software will offer a wide range of features and functionalities, proven to be critical for any rental business and its operations, out-of-the-box, including rental agreements.
It is well-known in the rental industry, that keeping track of all the ‘special’ rental agreements, that you enter with customers, can be a challenging endeavour. However, once you have an agreement with a customer, this rental agreement can be applied on every rental quote and rental order seamlessly.
Therefore, it is critical to have a system in place which not only allows you to store these agreements in an easy and flexible way, but also proactively derives the applicable agreements for you, when creating a rental quote or rental order.
Your equipment rental ERP can help you with rental quotes or orders. How?
Basically, your equipment rental ERP has a rental agreements feature that holds all the price information details. These price details could pertain to a prospect, vendor or customer; this information is used to derive the right price on rental quotation lines and rental order lines in the process.
This derivation is based on certain elements which can be flexibly chosen during the creation of a rental order, sub-rental order, rental quotation, or sub-rental quotation.
Based on these elements, the equipment rental software will select one of the following rental agreement types. The selection happens during the price derivation to use the correct rental agreement (price list) on the rental quote lines or rental order lines:
The priority of the rental agreement types, and therefore the sequence in which a rental agreement is derived from these rental agreements, can be defined in the rental agreement parameters.
The different types of rental price agreements are:
Finally, once you have these rental agreement types as specified above, you can set them at three rental agreement product levels, like:
These are the factors you need to look to help you with your pricing and agreement requirements:
The next steps:
Pricing for rental customers can be a gamechanger and managing rental agreements is a big part of the operations. What you need is the right equipment rental software to help you through the process. Here are some factors to consider:
Want more guidance? Our team of experts can help you in this regard.