5 Ways to Increase Revenue in Your Heavy Equipment Rental Operations
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The movers and the shakers in the heavy equipment rental industry are the intrepid ones who try new initiatives and new business models. As a result, they become more successful and eventually increase rental revenue. However, IT systems are often overlooked, even though a good IT system accelerates business, boosts efficiency and helps you gain insight to become more successful.
Many well-intended IT initiatives fail if it doesn’t support business-critical processes. Heavy equipment rental processes are often complex and use the full extended capabilities of any system.
HSO Innovation’s Dynamics Rental Management can help organizations to streamline their internal processes to be ready for the future. When the base rental processes like purchasing, availability, periodic invoicing and maintenance are supported, an organization can truly focus on becoming more successful. This blog post describes how HSO Innovation’s Rental Management solution can help companies increase their rental revenue.
360-degree customer view
To give customers the best possible service it is key to have a 360-degree customer overview to be able to look at a customer from all angles. Heavy equipment rental companies often sell multiple services, often sold by different departments within the organization. To make sure everybody within the organization knows what is happening, it is hugely beneficial to store all transactions within one system. This is vital to assure that the rental department sees if sales recently made an offer, or that the service department sees that a customer has a number of unpaid invoices. Besides a clearer insight, this overview will also help to tailor the offering to your customers. Every heavy equipment rental organization wants to be as customer-focused as possible, but this can only be achieved if you have a clear insight in all activities.
Increase your average rental revenue with up and cross-selling
An easy way of increase rental revenue is to achieve greater success in up-selling and cross-selling. A good heavy equipment rental system is vital to offer your customers up and cross-selling options on your online customer service platform (think: Recommendations & Popular Items section on Amazon when you’re looking at buying a specific item); if the suggested items don`t make sense, then it will not be successful. Giving your sales reps good up and cross-selling information increases the revenue potential.
Maximize utilization with clear insight in availability
Many heavy equipment rental organizations work with a multi-depot structure, so rental equipment is assigned to different locations. The key challenge of every asset manager is to assign the right equipment to the right location. Looking at the available units, while also looking at expected customer demand is key to have the optimal mix of equipment in a location. At the same time, when a depot gets a request for an item that isn’t in stock, a good solution can identify where this equipment is available so that the customer can be served. Asset Managers need to continuously monitor and compare the utilization rates of different depots to assure the available equipment is used as efficiently as possible.
Sell additional services to unburden your customers
Another way of increasing the rental revenue is by providing new and/or additional services to customers. Examples of additional services you can offer are breakdown repairs, preventative maintenance, periodic reports, and a regularly scheduled call or meeting with the customer to discuss how the rented equipment is used and how it could be optimized. With the latest available technology like IoT and remote monitoring, heavy equipment rental companies can see how the rented equipment is being used. Combining IoT with information from the customer determines the optimum usage of the rented equipment. With this analysis of data, rental companies can make the shift from being just a rental equipment company to a full-service provider that can fully unburden the customer.
Full insight in periodic invoicing
One of the most complex processes for any rental organization is definitely the periodic invoicing of rental equipment. Due to this complexity, rental companies lose revenue simply by not invoicing the correct amount. With HSO Innovation’s Dynamics Rental Management, organizations have full control over the amount that gets invoiced. With both a flexible pricing engine and flexible invoicing periods, the system automatically creates the right invoices to bill customers for the use of equipment.
These are just a couple of examples showing that the right rental software can make a big impact on your business. Every rental market has its own unique characteristics, so a stable but adaptable rental solution is key to success. To learn more about how HSO Innovation can help you conquer common business challenges in your industry, watch our on-demand webinar, Conquer Common Business Challenges with HSO Innovation.