Start from cost per rental day
A day rate that is copied from a competitor tells you nothing about your own business. Start from your side of the counter: what does it cost to own this item for a year, and on how many days will it realistically be out?
Add up the yearly cost of owning the item, then divide it by the days you expect it to be rented. The answer is the floor under your day rate. Margin goes on top of it.
- Purchase cost, spread over the years you expect to keep the item.
- Insurance, storage and finance costs.
- Maintenance, repairs and consumables.
- Delivery and handling time, if you deliver.
Define what a day means
Most disputes about price are really disputes about the length of a rental. Decide the rule and print it on the contract. A simple, fair rule is that each started 24-hour period counts as one rental day. A trailer taken at 9:00 on Friday and returned at 11:00 on Saturday is two days, and everyone can work that out for themselves.
Use the same rule for availability. If the system prices by 24-hour periods but the calendar blocks by calendar date, the two will disagree on a busy weekend.
Add a weekly rate
Customers who need an item for a week will not pay seven day rates, and they should not have to. A weekly rate that applies from seven days gives them a clear reason to hire for the full period, which keeps your item on rental and off your shelf.
Set the weekly rate as a multiple of the day rate that still covers your cost per rental day, and apply it automatically so staff are not negotiating it at the counter.
Keep deposits and late fees separate from the rate
The rental rate pays for use. The deposit covers loss and damage, and late fees cover a delayed return. Mixing them makes quotes hard to read and disputes hard to settle. List each one on its own line on the quote, and say when the deposit is returned.
Review prices against how often items go out
Every few months, look at how often each item was rented against the days it was available. An item that is always out is probably underpriced. An item that sits idle may be priced too high, or may be the wrong stock. Adjust one thing at a time so you can see what worked.
How Nexovil handles rates
In Nexovil, price is set per item per day. A weekly rate applies when a rental lasts seven days or longer, and each started 24-hour period counts as one rental day. Seasonal rates are not part of the current release. On Pro and Business, deposits are tracked separately on the booking, with damage deductions recorded to the cent.