Equipment Rental

Below are just a few of the functions and services that we have helped dealers & distributors with over the years. We enable our clients to reduce costs, improve performance, and boost operational efficiency! Let’s mention a few departmental issues here.

Billing Multiple (ROA – Return on Asset Value) – If you bought the equipment at $25,000 or $50,000, what should you be getting in annual or monthly revenue for that investment. We’ll discuss with you the value of the acquisition, the risk you put out there, and what you want to get back.

Maintenance & Interest Costs – In this department, these two items are part of your Cost of Goods, along with your monthly depreciation. The accounting is a little different, but there are ways to track what you are doing. We’ve spent years working with dealers on these issues.

Abuse Billing – When customers rent equipment from you, how you handle abuse repair can be the difference between profits and a losing department.

Balancing Rental Fleet Debt – During good-times or bad-times, you need to watch your risk in financing the rental fleet. Having a fully-owned fleet would be nice, but if that means the fleet is old and frequently costing you money to repair it, it is not worth being debt-free. But if the fleet is entirely new and you owe the bank on everything, your return on the acquisition will not be outstanding (unless it is 100% utilized). It would help if you established a balance of debt to maintenance expense to get the most return out of your investment.

These are some of the subjects we could be helping you with, in your rental department.

Contacting Us: If you would like to discuss how we can help, we will be pleased to talk to you, please call the number below, send us an email at george@wisewolfconsulting.com or use our Contact Form.