Lately, we have witnessed contractors and project owners seeking to calculate rates with more and better accuracy. To arrive at actual and substantiated ownership and operating costs, project owners often use multiple sources of data to benchmark rates. This means sometimes using EquipmentWatch’s AED Green Book, now known as our Retail Rental Rates, as a substitute for or in combination with our Rental Rate Blue Book.
The decision to utilize multiple data sources such as these often comes into play when deciding whether to rent or purchase equipment. In a recent blog post, we examined this trend, and noted that accurate data is important to provide sound criteria for making this decision. Using EquipmentWatch’s Rental Decision Point guide can help determine clear organizational standards for when machines should rented or owned, based on annual utilization expectations. As a critical input to decision-making, utilization can be used to identify the corresponding rental and ownership costs. With that understanding, an equipment manager can then easily find the point at which it makes sense to rent or use owned.
EquipmentWatch’s Retail Rental, used with our Internal Charge Rate Calculator, provides a solid foundation to make the choice whether to rent or use owned. As equipment rental has become more commonplace and is a trend that dealers and rental houses alike have capitalized upon, you can accurately update critical ownership factors like original price and annual use hours to understand your exact costs per month, and make decisions with more confidence, such as whether to switch to an ownership model, or whether to enter into agreements with rental companies or dealers. As we noted in another recent article, if rates are not updated and benchmarked frequently and accurately, contractors and project owners will find themselves losing money due to rates that are one (or more) steps behind.
To learn more about how we can provide the optimal combination of accurate data sources to make better decisions, schedule a free demo with us! Learn more.