Why Use Equipment Rental Software for your Business

Why Use Equipment Rental Software for your Business

One can argue aside from its employees, the most valuable asset a company has is their equipment and inventory.  Businesses can become inefficient and unprofitable when they are unable to track their equipment and measure the equipment's financial impact.  Companies can think of their equipment and inventory as potential revenue sitting in their warehouse waiting to be utilized.  According to the 2015 State of Small Business Report, 46% of small businesses do not track their inventory or use a manual process.  As a business, wouldn’t you be concerned about tracking your money if it was just sitting in your warehouse?   Utilizing equipment rental software will maximize profits by keeping track of equipment and inventory; as well as, provide information to help make decisions that will impact the overall performance of the business.  This correlation leads to accurate forecasting and planning which ultimately leads to revenue growth and profitability.  Failing to do so exposes your business to potential pitfalls and can cause your company to be unsuccessful due to not having an adequate system in place.

Reasons to utilize equipment rental software:         

Inventory Control

Not having a system to track your inventory can lead to poor inventory control which can ultimately lead to diminishing capital.  Just imagine, you think your equipment is at one job-site; but in fact, it is sitting in another yard not earning revenue.  Even worse, having to write off equipment because it is either lost or stolen; all as a result of inadequate inventory control.  This can also lead to poor customer service.  Charging your customers incorrect amounts because they had the wrong equipment.  Having equipment rental software will improve inventory accuracy as well ensuring the appropriate and proper rates are being charged to your customers.        

Reportability

Companies are looking to maximize revenue.  A benefit of having equipment rental software is to track the profitability of your assets; as well as, the revenue generated from your clients.  Sometimes your biggest clients are not your best customers in terms of profitability.  In some cases, those big clients are not charged for certain things that would normally be charged or they are given huge discounts.  Equipment rental software can generate reports to show how much revenue a client truly generates versus how much revenue is written off or given back.  It will also show you which inventory items are earning the maximum revenue versus the expenditures to maintain that particular equipment.    

Accessibility

Some companies are still using antiquated methods of tracking their equipment such as hand written paper files or some manual process.  The obvious downfall of the manual method is its accessibility.  These files are most likely stored in cabinets and in a specific location.  Not everyone will have immediate access; thus quick and important decisions are impossible to make.  In the electronic age, managers can have instant access to information.  Having rental software allows for instant accessibility no matter where your managers are, and they are able to make real-time decisions based upon the most recent and pertinent information.       

Disaster Prevention

Unforeseen acts of nature such as flooding or fire can destroy physical files and company records if they are stored on site.  Also, hacking and ransomware can wreak havoc to unsuspecting company servers that are not careful with their electronic data.  Information can be potentially lost if one is not careful.  Having a solid backup plan by using rental management software allows companies the ability to store their equipment and inventory data off site and at a secure location; thereby saving years of critical transactions.  Companies can return to business in an instant by easily restoring their data if these unforeseen events occur.       

Consistency of Information

Building and maintaining relationships are key ingredients to the success of any business.  Knowing the wants, needs, and desires of your clients play a pivotal role in ensuring your clients are returning customers.  Not having a mechanism in place to streamline customer interaction impedes the ability to build long-term relationships.  Rental equipment software gives you the opportunity to run analytics and reports on your customers to help keep companies informed of their trends and preferences; thereby, creating a true partnership with your clients.