Rental Financial Utilization Rate

solutions insights
rental financial utilization rate

HEAVY EQUIPMENT

The actual revenue earned by the rental fleet against the potential revenue the fleet could have earned.

BI and Analytics designed for the heavy equipment industry.

Empowering Rental Operations Managers, Fleet Managers, and Billing Coordinators to process data.

Make the right investments.

Know if you are making the right investments or not. If you are not making the right investments, track your weak areas, and where to improve.

Track your expenses.

We know when it’s not producing any revenue, it’s creating a cost for you instead. Track your expenses - whether it’s because the machine is in maintenance, repair, or waiting on the lot to be rented.

Improve your inventory management.

Overdemand or sudden reduction in demand for equipment can affect your profit margins. Have a clearer vision of how to improve your inventory management.

Track changes due to seasonal changes.

The utilization of fleet assets directly impacts fleet margins. Seasonal factors as weather and economic factors can influence these changes.

Improve your rental financial utilization rate

Rental equipment age.

The cost of maintaining equipment that ages need to be accounted for, especially if not replaced. Have an eye on the rental equipment age to avoid overspending on aged equipment versus the quality of new.

Changes in customer demands.

Make sure to stay up-to-date with industry trends and product innovations to ensure you are offering the products your customers demand.

Rental rate trends.

Benchmark rental rates against your competitors and start analyzing trends to help you understand the market. If you know the market, you’ll be able to be in front of your competitors.

World economy.

Track what’s going on outside of your dealership. External threads that you can’t control, but would prevent you from utilizing the equipment of your company well.

Available government data.

Track all possible Government information that’s available for your company to expand your business and to have equipment available for future projects.

External business.

Be aware of what your competitors do. What are their rental rates and how much equipment is available and make sure to have visibility into service and parts departments - they play a massive role to ensure your fleet is up-to-date.

Track in real-time.

Track 24/7 for an accurate and in sync overview. Track time when the fleet is rented, when it’s not, and when it’s in for repair or maintenance. Your fleet is always on – even when you are off. Leverage on the power of the data your fleet is constantly producing.

TARGIT has enabled us to easily pinpoint areas of weakness and increase ROI.

- Katherine Kelly, Manager and Owner, Kelly Tractor Co.

Success Story

Know your interest rates, the value of machines, and buying and selling when it’s appropriate to help you reach your KPI’s

Maintain the industry standards of at least 20% of the rental-ready fleet
Keep no more than 8% of the non-rental ready fleet
Achieve physical utilization rates of at least 70%
Keep expenses less than 8% of the total rental revenue