Your assets are not just valuable, they are your direct source of income. As a rental company, it’s imperative to maintain and keep track of your assets at all times, especially when you run an “asset-centric” rental business. When you start looking at your assets as the central focus of your business, your views will change – as will your profitability.
How to Define Your Rental Business’ Profitability
The goal of getting into an asset-centric rental business is to turn a profit. Therefore, you need to be able to properly define your equipment rental business’ profitability. Here are a few ways to accomplish that:
- Inventory your investment and be prepared for the ongoing cost of maintenance.
- Track the life of your rental assets and know when it’s time to sell off assets, determine what price to ask for them, and what to replace them with.
- Answer the following questions to get an idea of how much profit you can reasonably expect:
- How much do I need to charge as we start to rent our assets, break even, and then turn a profit?
- Do I need staff to manage our rentals?
- How will I store our equipment? Is this cost going into the price of renting assets?
The Road to Asset-Centricity
Good rental asset management software helps you stay on top of your business and your inventory. It also allows you to change the trajectory of your rental business to be more profitable and asset-centric.
Spreadsheets are complicated, old software is clunky, and neither is the best plan if your rental business is asset-centric. Cutting-edge software from companies like Fame Intel Rental Solutions tracks the availability of all your assets (sometimes with asset tagging), and lets you know when the equipment will be delivered and when it will be returned. The software also tracks asset location and future rental commitments. This single integrated system also allows your employees to have access to the real-time status of all assets from the office or out in the field.
Contact Fame Intel today to learn more about how such tools can increase your revenue, profitability, and allow you to provide your customers with a level of service you could never before imagine.