For hire businesses, setting the right prices for their hire assets can mean the difference between success and failure. If pricing is too high, hire businesses stand to lose customers, but lowering prices too much could prevent them from making a profit.
Also, the hire industry is changing all the time. The demand for certain hire items can change with short notice, and when this happens, hire businesses need to adjust their pricing strategies as well.
Fortunately, managing pricing for hire assets is much easier now than ever before thanks to hire management systems that come with built-in rental pricing software.
However, even with the help of rental pricing software, also called hire pricing software, hire companies need to tailor the software to meet their needs. Let’s explore how hire businesses can get the best out of their hire pricing software.
How does hire pricing software benefit hire companies?
Before delving into how hire businesses can optimise hire pricing software for their requirements, we’ll explore how this software helps hire businesses.
Hire pricing software helps businesses determine the best prices for their hire assets based on several factors, such as demand, utilisation, the nature of the asset, and the duration of the hire.
Another benefit of this software is that it automates the pricing process, reducing the chances of human error and increasing accuracy, making the pricing process faster and more streamlined. Also, the software allows businesses to make informed decisions based on real-time hire data.
In addition, hire pricing software can give hire businesses feedback on the effectiveness of their hire asset pricing. Hire pricing software also uses very advanced artificial intelligence and algorithms to calculate the optimal pricing for hire assets based on various scenarios and criteria, such as market trends.
The software can also give hire businesses recommendations on how to adjust their pricing strategies based on their goals, constraints, and preferences.
How can hire businesses use rental pricing software effectively?
Here are a few ways hire businesses can get the maximum from their hire pricing software:
Use dynamic pricing
There are two ways hire businesses can implement pricing; competitor analysis and real-time pricing adjustments. By using the software to analyse the pricing strategies of their competitors, hire businesses can adjust their pricing accordingly to remain competitive.
With dynamic pricing, the pricing software will automatically adjust prices in real time according to changes in demand, hire asset availability, and utilisation.
Monitor customer behaviours
With hire management software and pricing software, hire businesses should track their customers’ rental histories to get a clear picture of their preferences. With this information, hire businesses can offer highly personalised prices to their customers based on the hires they procured in the past.
Also, hire businesses should monitor customer feedback. Positive feedback may allow them to justify adding premium prices on their hire assets. Alternatively, feedback regarding their current pricing may help them rethink or adjust their pricing strategies.
Carry out A/B testing
One effective way to test the success of a pricing strategy is to do A/B testing. In this case, hire businesses will implement two or more pricing strategies for a limited time and deduce which is the most effective.
Identify popular hire assets
Some hire assets will be more popular than others, and these assets may be more profitable in the long run. Using hire pricing software, hire businesses can identify which of their assets get hired out the most and adjust their pricing strategies to match the popularity of the said assets.
Get the best out of your rental pricing software solution
The hire industry is more competitive than ever before and one way to stay ahead of the competition is to use clever yet reasonable pricing strategies to win customers over. With the help of hire pricing software, hire businesses can now try various pricing strategies and identify which of these strategies works best for them.
At MCS Rental Software, we offer highly customised rental software solutions. If you’re curious about how to get the best out of the pricing function of your hire management software, our team of hire management experts is here to guide you every step of the way.