In today’s economy, paying for only the things you use is quite common. An increasing number of companies use a consumption-based pricing model. However, within the rental business, you mainly pay for the number of days you rent certain equipment. What if we could change renting so that our customers pay for what they actually use, instead of the number of days they use it?
Today, in the car rental business it is quite normal to have a mileage allowance for the car you rent. This “consumption of mileage” is based on the number of days you are renting the car and can extend for a certain price. The question now is how we can use this framework for other businesses.
Image 1: The consumption-based rental model allows customers to pay-per-use
Within DynaRent, you can register multiple “meters” that record usage. For example, below is a meter that registers the mileage:
Image 2: In DynaRent you can register the mileage consumption for each fleet
By using the beginning value and the end value of these meters, you can calculate the customer’s usage. Based on this usage and the agreed price per usage, the total amount can be invoiced to the customer. Another scenario is if the customer has paid for a certain usage and either has consumed more or less than what he or she paid for. With DynaRent’s invoicing engine, it is possible to make correct calculations either by advance or arrears billing.
DynaRent can help you utilize consumption-based rental. In which customers will be billed for their usage and your equipment has a definitive usage log, so you will always know how much the equipment has been used.
If you want to know more about the possibilities the DynaRent Solutions Suite has to offer for your business, please feel free to visit our website: www.highsoftware.com, or contact us directly via firstname.lastname@example.org.
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1 thought on “Consumption-based rental: what is it and how to use it?”
Rental industry is growing exponentially and need of ERP software has become of core importance.