Asset Intelligence and Management

Asset Intelligence and Management

EZRentOut Blogs Usage Based Pricing

Offer Customers Flexible Pricing: Set Rental Rates Based On Item Usage

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Offer your customers flexible pricing by calculating exactly how much they have used a certain Item based on hours or mileage and charge them accordingly. Apply the usage tracking capability in EZRentOut and simplify rental calculations.

For example, suppose a customer rents out a forklift for 24 hours. While they would have the machine for a full day, they plan to only use it for eight hours. You can set an eight hour usage limit, define a rate, and easily calculate the final charges. 

Here’s how to get started.

Getting started with usage-based pricing

Go to Settings    Add Ons   Track Usage for Assets and click Enabled. To charge rent based on exact usage click ‘Charge Usage on assets based on the units used’

Now you can choose to track usage based on multiple metrics as shown below. 

Usage-based pricing

Set usage-based pricing while creating Assets

You can also set a pricing metric when you first create an Asset. On the Create Asset form choose from the dropdown menu shown below.

Now let’s create a pre-decided usage-based rental rate. Let’s say you rent out a truck for a week with an Allowed Usage of 100 hours per week and set a $10/hour price on the usage of the truck. This is what the form will look like:

Usage-based pricing

If your customer exceeds the 100-hour usage, you can set an Overage Charge Rate for additional hours used. You can choose to set flat Usage/Overage Charge rate as well. 

Setting a metric and calculating price based on it

Before renting out the Order, you can set an initial reading. In the example below we are using hours. New Assets will have a zero meter start reading. Older Assets’ last returned usage reading will be the starting point for new Orders. In the example above, we will be starting at 125 hours.  

Usage-based pricing

When the Order is returned, you can add an end reading to charge as per the usage of Asset. In the example below, the end reading is 225 hours. The Allowed Usage was 100 hours and the customer used the Asset for that exact amount of time. They will be charged $1,000 as per the usage charge rate. 

Usage-based pricing

If the customer exceeds usage hours then an Overage Charge will apply. In the case below, the customer went over by 25 hours and is being charged $375 on an overage rate of $15 an hour. 

Usage-based pricing

View usage-based pricing on the Order Details page

To show usage-based pricing as a line item you need to add the following columns. Go to Orders → Add Items → Item Details and click on the horizontal ellipsis to add columns. This will open up an overlay as shown below.

This is how the information will appear on the Order Details page.

Usage-based pricing

Usage-based tracking in Printout Templates

Go to Printout Templates Orders New Printout Template and choose from the following new elements from the Add button

Reports on usage-based tracking

For Reports on usage-based tracking, go to Reports Asset Reports. Here you can generate Usage Meter History and Assets Overage Reports. 

About EZRentOut

EZRentOut, a cloud-based equipment rental software can help. EZRentOut offers companies in numerous industries seamless rental management along with a host of other features. You can integrate your website with our EZR plug to keep track of all your rental Assets and operations. 

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