Rental Management 301: Advanced Rental-Module 3: Financial Management

Video Transcription

Video Summary

As a rental fleet manager, it is important to monitor your own business and understand the industry. The AED cost of doing business survey can help you compare your business to others and drive gross profit margin. A high performance dealer has lower depreciation as a percentage of rent-to-rent revenues, indicating better revenue generation and reasonable depreciation. They also have lower maintenance and repair costs, potentially due to using dedicated technicians. The high performance dealer's payroll of the rent-to-rent department as a percentage of total revenues is higher, indicating the use of their own technicians. Gross profit, financial utilization, and absorption factor are higher for high performance dealers. When deciding to sell rental machines, consider historical sales, local demand, price points, machine utilization, and maintenance costs. Holding machines for a minimum of 36-48 months can maximize gross profit margins and rental revenue.

Keywords

rental fleet manager

AED cost of doing business survey

gross profit margin

high performance dealer

rent-to-rent revenues