You can also consider things like a discounted monthly rate for high-value recurring customers who rent for long term periods. So if your daily rate is $200 for a piece of machinery, and say you’d be comfortable giving a 10% discount for a monthly rental as opposed to a daily one, you’d be looking at around $5,400 for a month-long rental period – a good deal for everyone involved. There are different ways you can structure this, but daily rates – with weekly and monthly based off of the daily rate – tend to be optimal for most types of equipment rental, including heavy construction equipment.Ī good way to do this is to start with the daily rate, then set monthly rentals based on the number of calendar days total in the rental period, plus a slight discount for the longer period. Your administration and handling costs tend to be higher for shorter term rentals – keeping in mind that equipment needs to be cleaned, and undergo routine maintenance, between rentals. Targeting customers that have longer rental periods will generally make for a more profitable and sustainable business that’s easier to manage. On the other hand, higher rates for shorter term periods means you’ll make more on each rental. Longer rentals are massively valuable as they limit the number of transactions you have to make, and minimize downtime. In short, the longer the rental, the better the daily rate equivalent should be. In our calculator, you can set your rates by day, by week, or by month.
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