Rental Management 201: Intermediate Rental-Module 3: Fleet Mix

Video Transcription

Video Summary

Financial utilization is a key metric in the rental industry that measures the revenue generated by a dollar of investment. It is calculated by dividing the annual rental revenue by the original cost of the rental fleet. The goal is to maximize financial utilization by selecting equipment with high revenue-generating potential. Different equipment categories have varying financial utilization rates. Heavy equipment (over $150,000) typically has a financial utilization target of around 27%. Large equipment ($100,000-$150,000) has a target of around 29.4%. It takes about four years to pay off heavy equipment and earn back the investment.

Keywords

Financial utilization

Rental industry

Revenue generation

Investment

Equipment categories