Pricing

See our Rental Income Calculator to help you determine what price to charge.

Value Pricing

You can price your rentals for maximum rentals. Simply set your prices slightly below the prices of your competitors or at the same price. This may be the only strategy you have available, if you are in a highly competitive area.

High/Low Pricing

Think about how you are going to advertise. Are you going to offer specials or coupons? If so, price your services above that of your competitors and advertise your deals at or below their prices.

Your services will have a higher perceived value to the customer; they will feel like they are getting a better deal by going with you. Just make sure not to abuse the coupon/special thing and run it all of the time. You will lose credibility with repeat customers if the "deal" offered is always the same.

Thoughts on Pricing

If you have little or no competition, charge whatever the market will bear. The ideal situation is to get the most money for the least rentals, extending the life of your equipment while bringing in the maximum profit. This can be achieved with an aggressive marketing campaign that establishes your company as the standard for the area. Or it can be achieved through long-term word-of-mouth referrals if you can afford to wait.

Just remember, even though you may not have competitors today, you might tomorrow. This doesn't have to be a bad thing (see Strategic Alliances) but with a hostile competitor, you will need to stay on your toes to keep your share of the market.