6 Critical Things to Consider When Comparing Rental Quotes

6 Critical Things to Consider When Comparing Rental Quotes

Compare Rental Quotes

Any experienced renter of equipment will share that when considering quotes between Suppliers, never select a Supplier based off the rate, alone. It’s critical to look at the total Supplier experience – surcharges, service response commitments and more.

Never select a Supplier based off the rate, alone.

When considering quotes from multiple Suppliers, it’s best to:

  1. Digitally Compare Structured Quotes
  2. Compare Total Cost Including Tax
  3. Itemized Surcharges
  4. Comparative Asset Availability
  5. Service Time Commitments
  6. Overhours Use / Rate Multipliers

Next, we’ll dive deeper into each of these aspects of Supplier quotes.

Digitally Compare Structured Quotes

Do you attempt to “compare” quotes by reviewing separate documents, in completely different formats? You’re already at a disadvantage. To successfully compare rental quotes, the old adage of “apples to apples” is a must. The starting point for a good comparison of rental quotes is a digital format that:

  • Easily displays all Suppliers in a comparative, tabular format
  • Indicates quote supplied status (e.g. “Not Supplied”, “In Review”)
  • For each quote, breaks down each input of the quote into easily compared values (apples to apples)

Compare Total Cost Including Tax

The rental rate is just part of the total cost of a rental. Beyond the rental rate, total cost includes surcharges, fees and taxes. All of this leads to often surprising total costs in your quotes. Make sure total costs are transparent and comparable.

  • Quickly and clearly see total costs for each Supplier
  • Ensure this includes tax
  • Ensure this includes surcharges

Itemized Surcharges

Too often, low rental rates (look great, right?) are offset by higher surcharges. Common surcharges include environmental fees or delivery fees. Make sure you don’t miss these surcharges and are surprised later with a higher invoice.

  • Itemizes Surcharges from each Supplier
  • View total surcharge expense during the expected rental period
  • Identify % of total cost connected to Surcharges
Rental Surcharge Expense

Compare Asset Availability

Equipment rental, with its high diversity and small machine population, makes having the exact machine type you want, when you need it, challenging. Proactively, as part of your RFQ (request for quote), you can include alternative asset types that you are willing to accept. If doing this, it’s critical to compare the asset availability of each quote.

  • The larger the rental agreement, the more likely an asset type isn’t available. Make sure to compare total asset availability, in % terms.
  • Are you willing to accept alternative asset types? Make sure that’s clear.
Quote alternative asset types

Service Time Commitments

Great. You’ve got a sense of costs and asset availability. But what about service time commitments? In the equipment world, even with new equipment, break downs and service issues happen. Experienced equipment renters understand that the opportunity cost of down time is significant. With that in mind, it’s critical to know what kind of service commitment your potential Supplier is willing to make before you say “yes” to the quote.

  • For each Supplier, easily see their response time commitments in the case of a service issue / downed machine
  • Identify response time to the initial response from a downed machine, in hours
  • Identify response time to the final resolution from a downed machine, in hours
  • Easily identify which Supplier is offering the best terms for both

Overhours Use / Rate Multipliers

So far, you’ve broken down each quote into rate/costs, asset availability and service time commitment. Last, you need to be aware of the hidden contract terms in the small font. Practically speaking, this is impossible for the average renter to identify, which is why you must ask your Supplier to itemize these when supplying quotes. For them, it’s easy.

One of the most important contract terms, especially for longer term rentals (2 or more weeks), is the Rate Multipliers which drive an arears billing based on above allowed usage (or “Overhours”). When saying yes to a quote, you are committing to an average assumption of 8 or less hours per day. Should you hit an average of 9 hours per day, normally your rental expense increases by 50%. Knowing Rate Multipliers before you rent is critical.

IronUp Marketing
IronUp Marketing
All things marketing at IronUp.

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