Tuesday, May 25 | 2:15 – 3:30 pm | Location: Montego A/F
Your Rental Department Needs to Grow Up!
According to the recent AED Cost of Doing Business Report, nearly 75% of dealers derive less than 10% of their revenues from Rent-to-Rent activity. Of the 75%, nearly half derive no revenues from Rent-to- Rent activities. Most of these dealers do however rent “inventory” machines managed by the sales department. Over time, this group of machines can morph into millions of dollars that is not being managed wisely. This session will focus on the WHY, WHEN and HOW dealers should segregate rental activity from the sales department. Proper management alignment within the organization along with accurate accounting details for rental revenues and expenses will give you the confidence for further investment and fleet growth. Are you in the 75%? Then don’t miss this session!
Tuesday, May 25 | 4:00 – 5:15 pm | Location: Montego A/F
Benchmarking Rental for Performance Management
The success of the people leading the rental operations of the business depends on a strong strategy. Do they have a strategy? Do they know what the rest of the industry is doing? In this session, we’re not talking anecdotes, we’re revealing hard research on common practices currently utilized by dealers in their rental strategies, business models, and operation and their correlation to rental profitability.
This session addresses the findings of AED’s first rental study. It is a broad review of strategic choices for rental and business model elections for both rent-to-sell and rent-to-rent models that can be made. The emphasis of this session is on the common practices of operating a rental line of business and includes key operating roles, inbound and outbound processes, and management of utilization.
From this session, attendees can expect to gather information that will enable them to benchmark their rental business to common practices revealed through the array of one-on-one dealer interviews that were conducted during this research so rental leaders can gain the confidence they need to know how the rest of the industry is navigating the growing world of rental.
Wednesday, May 26 | 1:30 – 2:45 pm | Location: Montego A/F
Strategies to Improve Your GPMs When Selling Rental Machines
According to the AED Cost of Doing Business Report, during the last five years the GPM between new and used machine sales is less than 1%. This should not be the case; used machine sales should be much more profitable than new. Most dealers are getting the bulk of their used machines from their own rental fleet. Done correctly, dealers can “engineer” used machine inventory to satisfy local demand and provide a targeted GPM that rewards the dealership for the risk associated with growing the used inventory.
This session will discuss the key elements in growing the used machines, the timing of the roll-out, and the accounting details necessary to properly reflect the GPM. We will work through four different rollout scenarios using various conditions that give insight into depreciation strategy, roll-out timing, and machine utilization. Attend this session for an insightful look at how you might improve your GPM on used machines. Don’t leak profits internally and don’t leave money on the table!
Wednesday, May 26 | 3:15 – 4:30 pm | Location: Montego A/F
Buying, Selling, and Leasing Equipment in the COVID Environment
James R. Waite, Esq.
James Waite Law
In this session, attorney and author James R. Waite will explore how the landscape of how we do business as dealerships and rental operations have changed. The session will explore best practices and how to legally protect yourself and your business against potential lawsuits due to COVID, and discuss how these impact your distributor, sales, and rental agreements.
Summit Note: Professional education sessions will be available to in-person and virtual attendees. Each in-person session will be following the CDC’s guidelines for safety protocols. Please visit our Safety Protocols page here.