Rental Management 301: Advanced Rental-Module 2: Fleet Management

Module 2: Fleet Management - Part 4

Video Transcription

Video Summary

In this video transcript, the speaker discusses the life cycle of different sizes of machines in a rental fleet. They explain that larger machines require more effort to generate decent income due to lower rental rates as a percentage of machine value. Over a five-year period, the speaker expects to earn more than the original cost of the machine by about 15%, with maintenance and repair costs accounting for 8-10% of rental revenue. The speaker also discusses the income and expenses associated with medium and small-sized equipment, highlighting the importance of understanding fleet mix and its impact on profitability. It is crucial to provide a range of equipment options and offer flexible rental terms for customers.

Keywords

machine life cycle

rental fleet

rental rates

maintenance and repair costs

fleet mix