Zilliant, an optimization company that helps businesses make better pricing and sales decisions announced a new simplified approach to rental rate optimization, called Rational Pricing, designed to help equipment rental companies to improve utilization and revenue by better aligning rates with market and customer relationship dynamics.
Rational Pricing ensures a logical alignment across factors that influence rates, such as rental duration, geography and customer spend, then determines rational, discrete term-based rates – daily, weekly and monthly – and delivers rate guidance to sales teams in real time through their existing quoting systems. Customers who spend more and rent for longer durations reap the benefits through additional price breaks. The result is increased transparency for sales reps and customers at the branch to help both parties understand how to get the appropriate duration and best rate for customer needs.
“Zilliant has provided price optimization to leading equipment rental companies in the United States and Europe for years,” said Eric Hills, Zilliant’s senior vice president of sales and marketing. “Through this experience, we have developed a strategic approach we call Rational Pricing to help rental businesses align pricing with overall market and customer-specific strategies. With Rational Pricing deployed on our MarginMax solution, rental companies can incent their customers to do more business with them, achieving higher utilization and revenue, while increasing rate transparency, consistency and fairness, which is a win-win for rental companies and their customers.”
Finland-based Cramo, which operates in 15 European countries, has used the program and increased its average rental duration by more than 6 percent and increased business by more than 15 percent in the countries participating in its program. Cramo’s top-line revenue growth increased 2 to 3 percent and the company expects more growth as customers are brought into the program.
“Zilliant’s rate optimization application helps our sales reps strengthen their relationships with key accounts by giving them and our customers absolute confidence that they are getting the Right Price for each and every transaction,” said Erik Bengsston, Cramo’s executive vice president, Scandinavia.
Rational Pricing was showcased at the International Rental Exhibition in Amsterdam this week.