The rental business can be both rewarding and lucrative if managed properly. However, in order to become a premier rental business, you have to ask yourself if you can do this without the use of comprehensive asset management. The short answer is no, as it’s virtually impossible to be successful long-term in the rental industry without a comprehensive asset management solution. Read on to learn why:
Struggles of Asset Management for Enterprise-Level Rental Business
When you don’t have comprehensive asset management in place through software, you are opening up your business to several struggles:
- Lost items or theft. It’s easy to lose track of items if you don’t have software keeping track of everything. You need to track when it goes out and when it comes back in, and make sure that it doesn’t just wander off.
- Double booking. You and someone who works with you can rent out an item to a client. Without software to catch this error and how that the item isn’t available, double bookings can and will happen.
- Scheduled Maintenance. The most expensive event in rental is a breakdown. For every dollar it costs you to repair a piece of equipment, it costs even more in customer goodwill. Keep up with preventive maintenance, track unscheduled maintenance, and utilize telematics to intercept failures.
- Tracking assets. As a rental business owner, you need to be able to track your equipment assets and determine what items are profitable to rent and which items might be losing you money. Software will help you produce an accurate P&L on each piece of equipment.
What is Asset Management Software? Why It’s Important for Tracking Inventory
Asset management software is a management system that allows you to track, categorize and monitor all your rental equipment. It’s important to track inventory so you know what’s available, what is in need of repair, and what is the most profitable.
Software also helps you track equipment assets to prevent theft, which incidentally is more common for rental companies. It can also cut down on the mountain of paperwork you have to do to keep all your assets or equipment organized, which will save you time and man hours.
Risks of Not Having Management Software
If you choose to forgo having management software or inventory management, you might be able to stay on top of it, especially, if your business isn’t that large and you only have a few assets. However, if you don’t have management software and your assets become too numerous, you can find yourself facing the following:
- Increased downtime when your business isn’t renting.
- Lost sales. If a client contacts you, and you don’t know if you have a particular piece of equipment available, this can look bad and lead to lost sales.
- Diminished profitability. Over time this disorganization will likely lead to less profitability overall.
Take Your Business to the Next Level
Thankfully, it is your ability to take your business to the next level and become a premier rental business by embracing comprehensive rental asset management solutions.