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

Module 2: Fleet Management - Part 7

Video Transcription

Video Summary

Financial utilization, also known as dollar utilization, is a key performance indicator that measures the revenue generated by a rental fleet against the value of the equipment. It provides insights into the market response to pricing and equipment availability. A higher financial utilization percentage indicates better revenue potential. Fleet mix plays a role in financial utilization, with larger equipment having lower utilization rates compared to smaller equipment. The target financial utilization for a fleet should be at least 40%, with 65% considered high. Time utilization, on the other hand, measures the actual time equipment is rented out and is important for understanding equipment productivity.

Keywords

Financial utilization

Dollar utilization

Key performance indicator

Revenue generated

Rental fleet