Equipment rental pricing calculations.

[Nico Albrecht]

I was wondering how to calculate rental prices for IT equipment. About a year ago we started to rent out laptops, computer and other IT stuff on a small scale but demand is getting bigger recently. We only do short time rentals mostly B2B, 1- 14 days but getting more requests in and thinking of buying more stock. My question is how to actual calculate such rentals for daily and weekly rentals. Are there any good formulas?

 

[Lolleo]

I'm not in the hire business myself so cant advice on the magic ratio. My first stop would be looking at competitors price lists. From there you can start to work out ROI over a 3/5 year period for each piece of equipment. You will need to factor in down time and repairs into your calculation.

In general, short term hire tends to be charged at a higher rate due to handling/restocking costs.

This may be a useful place to start your search: https://www.targit.com/en/blog/2018/01/best-kpis-equipment-rental-industry