No two equipment rental companies are the same. Different companies operate using different business models that determine what they require from their processes and systems.
Equipment rental companies that leverage “Rental as a Service” scenarios need business management systems that can process those transactions seamlessly.
Rental as a Service as a business model can be tricky to define. Here are few examples of scenarios in which equipment rental is delivered as a service more than a traditional rental transaction:
- A heavy equipment rental company may be renting out equipment for a large-scale construction project in which the equipment would come and go as needed by the contractor. In this case, the rental company may offer the construction company a flat fee per month based on the value of the equipment.
- A scaffolding company may wish to charge a flat fee per month, which is essentially a kit amount so that they may add or subtract different components.
The key to managing Rental as a Service transactions is to execute correct and timely billing while tracking the equipment, in spite of the fact that the equipment on site is no longer directly correlated to the billing.
A modern rental management system, like the Software as a Service (SaaS) ERP platform, Rental360, should provide equipment rental companies the ability to track the service and rental items separately so that they can support their business model.
In Rental360, you can not only track the service and rental items separately, but you can also charge for one particular service, but still have multiple rental items attached to that one service.
See how it works:
Although Rental as a Service is not a traditional rental model that you may not be using today, it is a supported capability within Rental360 that can be helpful if you find that it makes sense for your business to adopt a Rental as a Service model in the future.