Knowledge Center

Rental price management

The process where the price of rental goods are managed is called Rental price Management.

This process may result in

  • Changed set price for one or several rental goods/equipment.

  • Period price for one or several rental goods/equipment.

  • Customer specific price for one or several rental goods/equipment.

  • Order specific price for one or several rental goods/equipment.

  • Invoice specific price for one or several rental goods/equipment.

There are many ways to set the price of rental goods and equipment, depending on the customers needs and situation. Some prefer a set price for a given period, while others prefer to base the price on each seperate order. It is safe to say that the pricing structure of rental goods and equipment can be very complex and detailed, so the process to manage these prices may use a lot of resources.

A set price may be simpler and easier for a seller, but will reduce profits compared to a dynamic structure as larger customers may want reduced prices for long term periods and large orders. A periodical price structure may be beneficial, either being seasonal or reduced price for longer rental periods.

As customers are all different, some being large and others small, they often want custom offers. This may be solved by using contractual prices, where the periods are set with a start and end date. This price will usually be lower than the regular price and gives the renter a better overview of the rental plan.

Another method of differentiating the prices is to do it order-by-order basis. This gives you the opportunity to adjust all the factors involved, including price, delivery time, duration, quantum and return date.

There may also be a need for changing the price of the rental goods even when the process has come as far as invoicing. The price stated may be wrong, or any other factor may be off, and it is not obvious until this step in the process.

Tasks involved in this process

  • Pricing rental goods - Set the price, or change the price of rental goods. This may be a set price, special price, periodical price or customer specific price. May be change throughout the whole rental process.

  • Sending price list - The price list may be sent to one or several recipients using e-mail or physical copy.