We received a lot of great feedback and interesting questions last month when the ARM Dude announced the ARA Rental Market Metrics. Here at BCS Prosoft, the publishers of Automated Rental Management (ARM) rental software, we are excited as you guys are about the new metrics. That’s why we are broadcasting a 29 Minute Webcast every month on why the Rental Market Metrics should matter to you. Our next 29 Minute Webcast is scheduled for Thursday May 23rd at 2:00 PM Central and will elaborate on this blog post, 5 Ways the ARA Rental Market Metrics are Changing the Equipment Rental Industry. You can register for the webcast here.
Not only do the new metrics establish an industry standard for calculating things like fleet age and utilization, they also define some seemingly menial terms like revenue, rental days, time on rent, and the list goes on. As simple as this all sounds, most rental companies all use their own definitions and methods for calculating utilization. Having a standardized system gives real meaning to your data, allowing you to compare your numbers with others. This could also help you out when applying for a bank loan for new equipment, or even find out if you are charging too much or too little for a particular piece of equipment in your state or region. There are literally dozens of reasons these metrics are a big deal, but here are our top 5 reasons the ARA Rental Market Metrics are changing the equipment rental industry:
- They establish an industry standard for calculating utilization and fleet age.
- They define industry-wide terms like revenue, rates, days, and time on rent helps put everyone on the same page when discussing these items.
- They enable comparative analyses via the ARA’s partnership with Rouse Analytics.
- Anonymously compares your rental and utilization rates to competitors in your region.
- Not adopting the ARA Rental Market Metrics could be costing you money in the form of lost revenue or higher interest rates on loans for equipment.
As of May 12th, 2013, there are only two rental software publishers that currently support the ARA Rental Market Metrics. Not having these metrics could be costing you money in terms of higher interest rates at the bank or unearned revenue in your market! That’s why it’s so important that every rental software publisher start supporting the metrics as well. Regardless of which rental software you use, contact your account manager and start demanding to know when you can expect the benefit from the ARA Rental Market Metrics. Don’t have a dedicated account manager or 24/7 support team? Maybe it’s time you gave us a call. Start a a dialogue towards better efficiency and contact us today. Even if you’re not interested in software, we’d be more than happy to answer any questions you may have about the ARA Rental Market Metrics, the rental industry, or business management technology. Give us a call or leave a comment below.