Rate Right

Crunch. Instincts take you only so far without accurate, timely information. A rental-specific software program can crunch the daily, weekly and monthly numbers you need to manage inventory without sacrificing profit margins. With data in hand, you still make the final call, but it'll be an educated one, not a hunch.

Share. Companies need to monitor market conditions constantly and move inventory from where it's sitting to where it's needed. Branch managers need to share information about equipment, customers and prospects. There's enough competition in the industry without creating internal battles.

Empower. The more information you give your people, the better equipped they are to make educated rate decisions that help the bottom line. A monthly meeting isn't enough. E-mail, downloads, faxes — the method doesn't matter as long as the updates are useful and used.

Adjust. Don't be afraid to shake up things in response to competitive pressures. Be prepared to add or subtract product lines, offer new services and do whatever else it takes to keep your rates healthy and your customers knocking. Sticking with the familiar is a good way to become forgotten.

Induce. Create an incentive compensation structure that rewards your key people based on profitability, not just volume. When a company's profit margins are tied to its employees' bonuses, equipment rates will get more attention and care.

Train. If your counter people understand negotiating techniques, they can probably squeeze another 1 percent or 2 percent out of the random rental in a fair manner that leaves the customer feeling fine. Good phone technique is another underestimated skill that isn't always practiced but is easily taught and monitored.