By 2009, the effects of the economic downturn made hitting P&L goals much tougher at Cramo, the second-largest equipment rental company in Europe. Prices were pushed downward and rental duration was getting shorter and shorter. Executives tried changing price lists and enforcing discount rules, but they quickly learned that the cost-cutting game was impossible to win.
Not only that, but customers were dissatisfied as well. Sometimes they paid too much, sometimes they paid too little, and they almost never knew how to earn more discounts by increasing rental duration. It was time to act.
Executives at Cramo knew they needed to gain control of pricing to improve margins and duration. This video case study features Erik Bengtsson, Executive VP of Cramo Scandinavia, and reveals how MarginMax delivered market-aligned price guidance that helped them reach their goals. Best of all? Cramo leverage price to lift revenue by more that 10 percent and increase rental duration by 6 to 8 percent among customers in its Right Price™ program.
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