Meet hire revenue challenges

7 December 2022

The importance of determining appropriate metrics to understand the performance of a hire business was discussed in a thought-provoking webinar recently. 

The Overcoming Rental Challenges series of presentations were given jointly by Guy van der Knaap, MD of MCS Rental Software and Diane Banister, MD of the Intelligent Dialogue training and personnel development consultancy which has worked with many hire organisations. Covering four topics, recordings of the seminars can now be watched online. 

In a session called Increasing Revenue, Guy said that while a metrics indicator like fleet utilisation was important, it was not the whole story: there was a big difference between, say, having 100 per cent of your equipment on hire at 50 per cent of the quoted rate, and having 50 per cent out at 100 per cent.

It was also significant to monitor customer profitability. A client might spend a lot but if they damaged equipment or request many short-term hires, overall costs could be higher. 

Diane quoted a statistic that 80 per cent of sales discussions typically require no fewer than five follow-ups after the initial meeting. Sales professionals therefore had to be persistent and CRM software could diarise regular dialogue to ensure they carried out their responsibilities. 

She also highlighted the fallacy of focusing solely on price in a sales transaction. Establishing a strong enough business relationship would help both parties achieve the best results in terms of overall quality, provision and backup service, and it should be resilient enough to withstand a valid discussion about issues like equipment damage or unexpected demands. 

This worthwhile webinar series from MCS and Intelligent Dialogue can be viewed here. The other sessions deal with Managing Costs; Increasing Customer Satisfaction; and Improving Consistency in a Multi Site Organisation. 

Photo: Rodnae Productions