There are flexible ways to set up rental pricing in our equipment rental software – EZRentOut. In addition to specifying rental rates for individual assets/asset stock items, separate rental rates for items in bundles can also be set.
There are two ways in which you can define pricing on bundles:
|#||Type of pricing||Description|
|1||Discount||Each bundle item is given a discount on its rental price e.g. a 10% discount on bundle ‘Beach Photoshoot’ means:
— 10% discount on rental price of Camera
— 10% discount on rental price of Tripod
— 10% discount on rental price of Lens
|2||Flat Pricing||Rental rates of the overall bundle are specified e.g. bundle ‘Beach Photoshoot’ can have rental rates as follows:
— $15 per hour
— $80 per day
— $500 per week
1. Discount Bundle Pricing
With this setting, the actual rental rates of items (asset or asset stock) in a bundle are used to calculate the price of bundles. Bundle-level discounts are applied on the total rental price calculated for the rental duration of each item in a bundle.
Adding discount value to a Bundle: You can set discount pricing for bundles when creating a new bundle or make changes to an existing one. Go to Bundles > Click Bundle name > Edit and select ‘Discounts’ under ‘Bundle Pricing’ to set a discount value e.g. 10% for that bundle. This value may be set to zero if the original rental rates are to be used for all items in that bundle.
Note: This discount is not applied on inventory items included in a bundle.
Bundle in an Order with Discount Pricing: For example, a bundle ‘Beach Photoshoot’ containing a camera at ($60/week), a lens ($20/day), and a tripod ($5/day) will have a total rental cost of $235 for 1 week. If this bundle has a 10% discount set within the bundle details page, the price will be reduced by $23.5 and the total cost will be $211.5. An example is illustrated below:
Discount Pricing for Inventory Items: As the discount is not applicable for inventory items so in the case of inventory items, you can choose a price when adding the bundle line item. Say you normally sell Lens Cleaning Solution for $1.5 each but in a bundle, you want to sell it for $1 per solution. You can add the $1 rate when adding ‘Lens Cleaning Solution’ in the bundle. See image below:
2. Flat Bundle Pricing
Flat Pricing for Bundles based on Rental Periods: Flat bundle pricing can be used to set separate rental pricing for bundles and override the rental rates of individual items (asset or asset stock) in the bundle. For example, a bundle containing a camera, a tripod and a lens can have an overall rental pricing of $8 per hour, $13 per day and $75 per week. Note that this rental pricing does not apply to items that are for sale (inventory items).
You can set pricing for bundles for per minute, hourly, daily, weekly or monthly go to Bundles > Click Bundle Name > Edit and select ‘Flat Pricing’ under Bundle Pricing.
Flat Pricing for Bundles based on Percentage
When bundle pricing is set to ‘Flat Pricing’ in our equipment rental software, you can specify the percentage of rental cost shared by each rental item.
a. Adjust the Percentage Share of Each Item with Flat Pricing
There are two ways to assign the percentage of rental cost shared by each item in a bundle when flat bundle pricing is specified i.e. either assign an equal share of the rent to all items or assign separate percentage shares to each item. To assign an equal share of the rental price to each item in a bundle simply select ‘Assign equal share to each item’ under ‘Items in the Bundle’ within the bundle details page as shown below.
For situations where the rent is not shared equally among items in a bundle, you can specify a different percentage of rent shared to each item in the bundle. Uncheck ‘Assign equal share to each item’ for this within the Bundle details page. Let’s consider the same example mentioned above for Discount Pricing i.e. the ‘Beach Photoshoot,’ that contains a camera, tripod and lens. The percentage share of the rental price for Camera is 70%, Tripod is 25% and Lens is 5%. See image below:
If the ‘Beach Photoshoot’ bundle is rented out for 1 week with its flat pricing set to $75/week then the total cost of the bundle is $75. In this case, the rental price of the camera is 70% of the total price i.e. $52.5, the Tripod is $18.75 and the Lens is $3.75.
The percentage must be divided accordingly or the bundle won’t play out. An incorrect percentage is highlighted and an error is also indicated.
Note: Inventory items are sold so they are not assigned a percentage for rental pricing. Their cost is simply added to the total of the rental items in the bundle.
b. Flat Pricing Calculation of Bundle Items in Order
When bundles with flat pricing are added to an order, the rental price of each item is calculated according to the percentage of rent that each bundle item contributes. The price of each item is rounded off to the second decimal place. Sometimes the rental price of items cannot be perfectly rounded to two decimal places which results in a rounding error.
To cover this rounding error a line item ‘Price Adjustment’ is added to the order by our equipment rental software. For example, a bundle with a total rental price of $10 will assign a price of $3.33 to the 3 items in the bundle if the rent is shared equally. This will leave $0.01 to remain unaccounted for. The order detail page will indicate this against ’Price Adjustment’ field under the pricing table as follows:
To learn more about adding bundles to orders, click here.
Share queries on our Equipment Rental Software
EZRentOut is the leading equipment rental software used by a diverse set of rental businesses worldwide.