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What are you doing to offset your increased costs? Updating rates and other revenue changes are just a couple of crucial ways to make your rental business grow and prosper.

As the operator of a rental business, remember to go through the process of updating your rental rates regularly. At the same time, you should consider a wide range of other strategies including changes to your store hours, minimum rental periods, delivery rates and damage waiver. It can be very difficult to even imagine making some of these changes, but the rewards can be great so it's worth the time and expense.

There are many variables to consider when updating rental rates, so it's understandable that many choose to tackle other pressing issues. Every rental company should make minor rental rate adjustments throughout the year. However, a comprehensive, item-by-item rental rate analysis should be performed at least every two or three years. The process is most effective with the guidance of a rental business consultant.

Issues including return on investment, value and competition factor into selecting the best rate to use for each item. (Never do an across the board increase as it could damage your business.) The goal of updating your rates is to maximize growth and profitability.

Certainly, some rates need to stay as they are, but most probably need to be changed. Of all the times I've assisted clients with this project, I've always recommended many more items be raised than lowered. (But be sure not to price yourself out of the market.) There are times that rental rates are in such great need of updating that it's surprising the rental company was profitable at all before the exercise.