Is there a formula and pricing strategy that helps equipment rental agency set their rental rate?

Equipment rental agency,rental agency,heavy equipment,rental equipment agency

Actually there are many types of rental equipment services.

It may be a musical instrument, party equipment, heavy tool equipment, Construction equipment and so on.

The price will depend on which service you are given.

As I am working on Equipment Rental Agency, I can give an overview of fixing price.

Though my company is based on construction and heavy equipment.

This is the simple law when it comes to setting up the price.

Rental Rate = (Total Cost of Ownership) / (Expected Rental Lifetime) * Profit %

Or you can follow this calculation:

  1. Mid-range excavators weighing 15 to twenty tons generally home in price from $100,000 to $200,000 new (and can run up to $500,000 for larger customized models). Renting an excavator average $571 each day, $1,233 a week, and $3,433 for four weeks.
  2. According to Warehouse IQ, a new 6,000-pound forklift costs between $11,000 and $13,000. Big Rentz rents out forklifts for $196 each day, $547 every week, and $1,640 for four weeks.
  3. Need a skid loader? CostOwl estimates that a 2,000 pound Bobcat skid loader costs approximately $20,000-$30,000. Meanwhile, Big Rentz rents out equivalent skid loaders for $379 each day, $927 every week, and $2,367 for four weeks.
  4. Scissor lifts cost about $22,000 new. But if you decide on renting, an equivalent lift cuts right down to $99 each day, $287 every week, and $399 for four weeks.

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