Rental companies will incorporate online marketplaces into their business plans for many reasons. Lower costs is probably at the top of the list, but it won't be the only reason that draws them, says Kevin Costello, managing partner for digital market solutions at Arthur Andersen.
"Initially a marketplace can be successful simply by providing a lower-cost offering," Costello says. "However, if efficiency is the only value offered, a marketplace will find itself struggling as soon as nine months into its operation. To build long-term success, a marketplace must offer participants other types of value, such as the ability to approach customers directly with complex products and to offer bundles of products, services and expertise."
