Variations in Rental Utilization Calculations
Utilization calculations may be varied based on many different factors. For example:
- a company with equipment which requires preventative maintenance activities every 2 weeks, may decide that the number of available days in the month is decreased as it will unavailable due to maintenance for 2 days out of each month.
- Some rental businesses give "free days" on rental contract billing processes, for example on a national or public holiday, and therefor the equipment does not earn any money on those days, even though it is physically on rent.
- Some companies charge minimum rates, for example you may rent an excavator for 1 day, but be charged a three-day minimum. The Physical utilization will therefore be 100% on the day, but the financial utilization is actually 300% as you've earned 3 days revenue for 1 day's work.
- Rental Software is normally required to assist management teams in measuring and calculating utilization figures.
- Asset Tracking software may also be important in increasing or managing utilization figures.
Read more about this topic: Utilization
Famous quotes containing the words variations in, variations and/or calculations:
“I may be able to spot arrowheads on the desert but a refrigerator is a jungle in which I am easily lost. My wife, however, will unerringly point out that the cheese or the leftover roast is hiding right in front of my eyes. Hundreds of such experiences convince me that men and women often inhabit quite different visual worlds. These are differences which cannot be attributed to variations in visual acuity. Man and women simply have learned to use their eyes in very different ways.”
—Edward T. Hall (b. 1914)
“I may be able to spot arrowheads on the desert but a refrigerator is a jungle in which I am easily lost. My wife, however, will unerringly point out that the cheese or the leftover roast is hiding right in front of my eyes. Hundreds of such experiences convince me that men and women often inhabit quite different visual worlds. These are differences which cannot be attributed to variations in visual acuity. Man and women simply have learned to use their eyes in very different ways.”
—Edward T. Hall (b. 1914)
“Heaven’s calculations don’t follow man’s calculations.”
—Chinese proverb.