ForConstructionPros.com

I bought a 3-ounce bag of M&Ms in a North Carolina airport recently. The cost was $1.99. Each M & M cost 5 cents! Certainly, life is more expensive today than it was six months or a year ago, and far more expensive than it was two years ago. But, it's difficult to understand how the daily rent on a $20,000 construction rental item rents for the equivalent price of a bag of M&Ms.

The cost of fuel for your delivery vehicles has increased over 25 percent in the last 12 months alone. The other costs of doing business have risen as well. So, it's time to take a fresh look at your rental rates.

Pricing strategy is important to the growth and future viability of your business. Don't just tinker with your rates. And don't do an across-the-board increase or decrease. These are among the surest ways of either charging too much or leaving too much money on the table.

I recommend a comprehensive plan to adjust your rates. This is more than just "reviewing your rates" because active changing might be necessary - depending on all the factors that relate to your company's rates. Your rental rates need to be fair and reasonable for your community.

I also suggest an item-by-item adjustment as part of the comprehensive plan to increase profitability. What you should be charging is local-market specific. There are many factors to consider. Don't rely upon employees, friends or other rental business operators for this type of business advice. Get an industry expert's opinion as to what should be done and how and when it should be done.