But you may need to adjust the prices to cover your other expenses for the things like rental software, website, GPS trackers, inventory management, marketing, and others. We have already included maintenance, storage, and insurance fees in our calculations. Adjust the prices based on other expenses.We calculated this number by multiplying $40 by 8 days (=320) and subtracting the $73.3 monthly cost. If we price it at $40 per day and rent it for eight days a month, our monthly profit from a single generator will be $245. Same generators rents for somewhere between $40 to $100.The lifespan of equipment is five years.Each generator costs us $73.3 per month (including maintenance, insurance, and storage).Since we have all the information, we can start putting the price tags. Since we are using generators as an example, I have researched their rental prices and found that companies rent smaller generators from $40 to $100 daily. Therefore, we need to study the market and see how others are pricing their generators or other equipment. Overvalued rental equipment will prevent you from having many customers and may dent your reputation. It means each generator needs to earn us $73.3 per month just to break even. Now, we need to divide $4400 over 60 months to come up with a monthly cost. We got this number by adding $800 initial price, $3000 (maintenance & insurance for five years), and $600 (storage for five years). Given the five years lifespan, the total cost of each generator will be $4400. Let’s say you need to spend $50 per month for maintenance & insurance and another $10 per month for storage. For example, if you acquired five small generators, paying $800 each, you should take that price and add maintenance and storage fees to cover your business expenses. The initial price of equipment determines the course of your calculations. Consider the initial price of equipment + other expenses.Therefore, you must take the most advantage of the rental equipment in the first five years. Let’s say the rental equipment you just bought gets devalued by about 20% per year, which means your item will be worth zero after five years of usage. Determine the devaluation value of the equipment.We evaluated almost all of them and came up with our own formula, it includes five simple steps: There are several ways of calculating rental equipment pricing, each having its pros and cons.
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