In today's global rental industry, there are many different ways of working, this includes numerous pricing methodologies. But how can your rental ERP solution align with your various rental rates? We spoke with Director of Product Management, Mark Taylor, to discuss how inspHire can support dynamic pricing in equipment rentals.  

What can inspHire's software solutions offer to rental companies using the dynamic pricing format?

"inspHire’s rental management solutions offer a diverse array of pricing strategies. A variety of rental rate types can be configured, tailored to global, regional, depot, product, customer or project levels. Rental companies employ numerous pricing methodologies, as there is no universal approach to managing business operations.

The complexity of pricing in the rental industry is influenced by several factors, including the size of the company, its geographic location and the types of equipment it hires out. As these variables increase in number and diversity, the intricacy of pricing strategies also escalates. Rental companies have developed a variety of pricing algorithms to maintain a competitive edge in the market.

An example would be an inspHire customer who rents out air conditioning equipment. When the weather is hot, naturally the demand for this type of equipment surges, so a higher price can be obtained. The same applies to companies who hire out pumps – during severe wet weather, pumps will be in demand, so the market pricing can be adjusted dynamically."

What key features specifically cater to the unique needs of equipment rental businesses? 

"Our teams support each customer based on the organisational structure of a rental company, there is no one-size-fits-all approach – of course, there is best practice which is applied, but flexibility is key.  

inspHire is a comprehensive solution designed to integrate seamlessly with the latest finance and ERP systems. It operates on top of these systems, handling the heavy lifting involved in finance, operations, logistics, asset management for all types of rental lifecycles.  

This true end-to-end solution offers various APIs, allowing other systems to easily connect with our platform. This includes a variety of mobile apps for drivers, yard workers, operators, workshop staff, inspection teams and more, as well as telematics providers for meter-based charging and more.  

A standout feature of inspHire is its capability to precisely predict equipment demand across different scenarios. This involves assessing whether items are scheduled for collection and will be accessible later, or if incoming purchase orders are set for delivery, making those assets available to customers once they have been received and checked.

Additionally, it requires evaluating whether quotes that convert to contracts should be included in our forecasting. The system also incorporates budgeting screens to determine what should be purchased and moved to satisfy future projects based on anticipated demand. All of this modelling increases utilisation and ROI for rental companies, ensuring the right equipment is at the right place, at the right time, at the right price."

What types of data do inspHire's algorithms rely on to adjust pricing dynamically?

"Rental companies typically prefer controlling their pricing rather than relying on dynamic adjustments due to equipment variety and charging patterns. While some systems manage specific equipment categories, our clients often have long-term agreements and resist large price hikes. Therefore, we enable quick pricing updates as needed. 

Certain customers will have special discounts based on rental duration or meter-based charging, with additional charges for extra usage. This updates dynamically via meter readings from drivers, staff or telemetry data like TrackUnit. If hours aren't timely entered, predictive tools adjust invoices for overage charges or credits. 

For construction companies, rental organizations often establish project-based pricing to align with the customer's budget. However, if equipment is rented outside the scope of that project, alternative pricing may be applied. As for price list pricing, certain equipment categories can be easily adjusted in response to increased demand. This process is managed through various reports and dashboards, allowing for straightforward changes as and when needed.

Some of our users offer net rate discounts on specific equipment and then layer additional percentage discounts on top of the price list rates, or they might combine both methods to avoid double discounting. This approach allows them to customise pricing for different products, ensuring customers receive the best rates."

How customisable and adaptable is inspHire's dynamic pricing solution for rental companies?

"inspHire users can adjust parameters based on their specific goals or fleet sizes. Customers will generally look at their ROI reports or dashboards and modify to ensure the right metrics are being achieved – it’s up to our customers to define these prices, but we give them every tool possible to take care of it easily. 

It can get complex, but the customers recipe of their success is their own and the more unique it is means it's harder for their competitors to replicate."

Thank you to Mark Taylor for speaking with us on this topic. If you would like to discuss inspHire's rental management software solutions, get in touch with the team today by clicking here.