ABCD
1
QuipliFree Template Courtesy of https://www.quipli.com
2
TAKE YOUR BUSINESS ONLINE WITH Quipli's RENTAL SOFTWARE
Manange your rentals, reservations, inventory and website all from one platform.
3
Make another copy here
4
What does this Calculator do?This calculator was designed to help rental businesses calculate their rental equipment pricing before the point where they break even on their investment and then to understand your profit after you've broken even. Once you have covered your initial costs for equipment, your ROI will increase greatly, but up to that point, you shouldn't rent out your equipment purely to cover your costs - unless for a strategic reason.

This calculator helps you understand how many days and at what price you must rent your equipment in order to stay competitive in your market while making a profit on top of your initial investment during your break even period.

You could rent your equipment out at the cheapest rate without any profit in order to recover your initial investment, or you can create a plan that over - for example - 2 years that you want to break even, you also want to profit 200% for that piece of equipment, while staying competitive.

If you price below the Gold, then you can undercut your competitor's average pricing. This might impact how long it takes to hit your profitability goal, but you can ensure you are at least staying above what you need to price your equipment at in order to stay on course to break even during your Break Even Goal time period.
5
6
Step #1 - Make a Copy:

A) Select File
B) Select Make a Copy
7
8
Step #2 - Input Information:

A) In Your Copied Version, begin inputting information for your calculator
9
10
Step #2A - Input Costs:

A) Input the costs of your equipment
11
12
Step #2B - Input Goals:

A) Input your goals

What ROI you want during your break-even period?

How long do you want to take in order to recover your equipment costs - aka Break Even.

Utilization Rate: What type of period do you rent your equipment for? Day, Week, Month?

Utilization Rate Percentage: What percentage of time do you expect your equipment to be rented for? 15 days per month would mean 50% Utilization Rate Percentage.

To view plainly how many days you need to rent in order to hit your goals, Select Day with 100% utilization rate.
13
14
Step #2C - Competitor Pricing:

A) Input the costs of 3 competitors and the cost they are renting their equipment
15
16
Step #3 - View Your Results in the Output Tab

A) Input the costs of 3 competitor's and the cost they are renting their equipment
17
18
Step #4 - View Your Results in the Output Tab

Gold marks the spot. Scroll Till You Find it. Where the chart lines up with Gold is the place to start for pricing your equipment.

This is where your ROI Goals line up with Your Competitor's Rates. This is where you can view the number of days, weeks, or months at your utilization rate percentage you need to rent out your equipment in order to reach your goals.

If you price your equipment above the Gold, you are pricing your equipment above the market rate, but will need to rent less often in order to hit your ROI goal.

If you price below, you are undercutting your competitors, but taking a hit in ROI. If you are new to the market, this may be what you will want to do in order to build a customer base.
19
20
Step #5 - Review Post Break Even ROI
Once you've established the number of days you aim to rent your equipment for during your Break Even Period, and have an idea how you should price your equipment, you can begin thinking of what your post-profit will look like.

Once you've completely covered your costs, you will be renting almost purely for profit.