The equipment rental industry is more complex than you might imagine. It’s unique in that you always get your product back, creating a complex set of challenges. Additional challenges stem from decentralized pricing environments, demand tied to the business cycles of different customer types, and a discount-driven market economy where customers expect to negotiate from the published gross-price lists. And, the industry is relatively immature, dominated by many small-regional players who are prone to over-discount and compete solely on price.
For Cramo, the second-largest equipment rental company in Europe, massive complexity made delivering market-aligned prices to its 150,000 customers in 15 countries nearly impossible. Delivering manual pricing reports was ultimately ineffective, and both rental rates and duration were falling. Ultimately, the executive team at Cramo pivoted to a more strategic pricing approach which boosted rental duration by six percent and lifted revenue by more than 15 percent. Read the full case study and learn how they did it.
No Previous Flipbooks
Make Pricing a Win-Win-Win for Rental Companies and Customers
A fundamental change in how rental rates are set and communicated to customers is long overdue for many com...