The equipment rental sector is in the middle of a boom, with more companies going for rental rather than an outright purchase. Servitization is the buzzword where goods are being sold as services, which is the case with the rental industry. Companies would rather opt for renting equipment, which is a service than block their capital with an outright purchase.
As an equipment rental company, you need to capitalize on this burgeoning market. Now that the demand aspect has been taken care of due to market forces, you need to focus your energies on gearing your business towards meeting customer needs.
At To-Increase, we often have equipment rental companies seeking our advice on the way forward. Our advice to our rental equipment customers is that they need to invest in the right equipment rental software so that they can meet all the various demands their customers place on them.
Here’s a list of pitfalls that we have seen many equipment rental companies fall victim to and ways to avoid them.
#Pitfall 1. Not considering future plans and scalability
The rental business, as we said earlier, is on the verge of exploding, which means that your business needs to keep evolving. However, many equipment rental companies select software solutions that suit their current needs.
When you do not consider your future requirements and the scalability of your business, the result can either be double expenditure or fractured systems that are not on sync requiring double entries. In the end, equipment rental companies decide that the ERP is not right for them, which is far from the truth.
#Pitfall 2. Ignoring the latest technological developments
An equipment rental software solution is more than a part of your ERP ecosystem. It is an independent solution that keeps evolving to meet the changing needs of the market. For instance, now, equipment rental software not only provides operational support but also uses technology to connect teams on the field, provide insights, and use technology like AR, MR, VR, and IoT to enable better control and reach.
#Pitfall 3. Selecting software that does not help all stakeholders
Equipment rental business is not just about the technical teams, the field personnel, the operations team; it also includes the marketing and sales folks, the finance department, the IT team, and much more. One of the necessary steps that equipment rental companies should ensure is that they discuss the purchase of the equipment rental software with all the stakeholders.
#Pitfall 4. Ignoring the ill effects of siloed information
ERP has all the operational and financial data, while your rental solution would have all the information related to equipment that is being rented out. Right? Absolutely not! This kind of information silos can be detrimental to the company and cause a disconnect between the top management strategy and the operational tactics.
Having a unified overview ensures that your financial planning and reporting is in line with rental operations. This way, you will be in a better place to make the right investment decisions and ensure that finance is conscious of the needs of the equipment rental department and vice versa.
#Pitfall 5. Not putting the customer experience first
‘Customer is king’ is a cliché we have heard so often and with good reason. There is truth in this, and all businesses would do well to ensure that they keep this dictum in mind. In the rental market, it is crucial to make all decisions, including the rental software purchase decisions based on the kind of customer experience you are hoping to offer.
How we can help you
The best way forward to make the right purchase decision for an equipment rental software is to list out all your requirements and then ensure that you evaluate any potential software against the list. Having a detailed checklist would ensure that you do not miss on any of the various features and aspects that you should check on before making the final decision.