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Stay in the know with all of our latest

rental news, blogs and upcoming events  

Sunday, 16 June 2024

Rental businesses are highly competitive in today’s business environment. Securing the right equipment at the most cost-effective price is crucial for both contractors and rental companies. Traditionally, equipment rentals have adhered to static pricing models, limiting flexibility and potentially leading to missed opportunities for both parties. 

To keep ahead of the curve, MCS-rm/RM Web System introduced dynamic pricing with date-based grids to offer a more strategic approach to pricing equipment. This method empowers businesses to leverage real-time data and secure optimal pricing for their rental needs. 

In this blog post, we’ll explore what dynamic pricing is, how rental companies can create a date-based price list, and the benefits of applying dynamic pricing with a date-based price grid. 

What is dynamic pricing? 

Dynamic pricing is an automated system that adjusts rental rates for equipment on quotes and contracts. It can be applied at two levels: customer and equipment:

Customer-level pricing: Discounts are applied to list prices based on a percentage assigned to a customer code. Authorised users can define these codes and percentages. 

Equipment-level pricing: Prices are adjusted based on the equipment category, rental duration, and current date. This requires configuration using new menus in the MCS Rental software. Here’s a simplified breakdown of this level:

  • Group categories: Equipment is categorised in a hierarchy with levels linked to MCS-rm groups.
  • Discount levels: Percentage discounts are set for specific rental durations.
  • Discount level assignments: Discounts are assigned to equipment groups or categories based on date ranges.

The system considers these factors to determine the applicable discount for a quote or contract line:

  • Rental duration (number of days from the start of the rental date until the projected stop date)
  • Current date

The discount is then applied to the standard rental rates. This process doesn’t automatically recalculate rates on existing quotes or contracts.

How can new users set up dynamic pricing with a date-based price grid? 

Step 1: Access the price list – maintenance section 

Under the price list – maintenance section, click on ‘New’ to create a standard equipment price list. 

Step 2: Create a new price list 

Click the drop-down button beside the New button. 

From the drop-down menu, select “new date-based price list”. 

Step 3: Define price list details: 

  • Price List ID: Enter a unique identifier (up to 20 characters) for the price list. (Mandatory)
  • Price List Name: Provide a descriptive name for the price list (up to 50 characters). (Optional)
  • Date: This field automatically populates with the creation date. (Optional)
  • Inactive: Check this box to deactivate the price list, making it unavailable for selection. (Optional)

Step 4: Configure date-based validity:

Valid from date: Click on this field to manually enter the start date for the price list’s validity. Alternatively, use the calendar icon to select the date.

Step 5. Link existing equipment price lists:

In the “Equipment Price List ID…” field, right-click to access a list of existing equipment price lists.

Select the desired equipment price list(s) to be incorporated into the date-based price list.

Step 6: Save the price list:

After completing all configurations, proceed to save the newly created date-based price list.

What are the benefits of dynamic pricing with a date-based price grid? 

Rental companies can reap multiple benefits from using dynamic pricing with a date-based price grid. This includes: 

  • Increased flexibility: Static pricing strategies are not flexible as they depend on predetermined price levels. With dynamic pricing, rental firms can make changes to equipment pricing to align with current demand and supply factors.
  • Optimised pricing:  By considering factors like equipment category, rental duration, and current date, dynamic pricing helps businesses secure the most cost-effective rates for their rentals. This can lead to significant savings for both contractors and rental companies.
  • Reduced risk of missed opportunities: Static pricing might miss out on potential business. Dynamic pricing allows for adjustments based on factors like lower demand periods. Rental companies can offer targeted discounts to attract customers during slower times, maximising revenue opportunities.
  • Enhanced customer satisfaction: Dynamic pricing enables rental companies to offer competitive rates, potentially leading to more satisfied customers. Customers benefit from potentially lower prices during certain times, while rental companies can still maintain profitability.
  • Improved efficiency: The system automates price adjustments based on predefined parameters, streamlining the rental process and reducing manual calculations for rental companies.

Get in touch with MCS to learn more about dynamic pricing with date-based price grid

Dynamic pricing with date-based price grids empowers rental businesses to ditch static pricing limitations. 

By leveraging real-time data, they can optimise equipment rates, attract customers with targeted discounts, and gain a competitive edge. This approach translates to increased flexibility, cost-effectiveness, and overall efficiency for both rental companies and their customers.

To experience the benefits of rental software, get in touch with the MCS team today.


FAQs 

Is dynamic pricing with date-based price grids complex to set up? 

Not at all. Setting up dynamic pricing with a date-based price list does not require a complex setup process. It involves creating a new date-based price list, defining the price list details, configuring date-based validity, linking existing equipment price lists, and saving the new price list. 

Are there any additional costs associated with using dynamic pricing with a date-based price grid? 

No, there are no additional costs associated with using this feature. 

Can I edit a date-based price list after creating it? 

Yes, you can edit a date-based price list after creating it. Once you have saved the new price list, you can access the maintenance section and make changes as needed. This includes updating the price list details, configuring date-based validity, and linking existing equipment price lists.

Get in touch

To discover how MCS-rm hire software can empower your business, call us on +61 (2) 9477 1355 or use our enquiry form.

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