March 24, 2020
So you’ve listed a vehicle on our platform, great! Rental activity for your vehicle will depend on many factors, one of which is the daily rate you choose to charge renters who use your vehicle.
Here we give you all the information you need to know about COOP’s recommended rates and how you can adjust your rate to the best setting possible for your business.
COOP sets the recommended rate based on the rental industry standard for the vehicle you’ve listed. We calculate this number to balance generating revenue on the platform, attracting renters to your listing, and remaining competitive with other commercial rental vehicle companies. Use our industry-standard discount for long-term reservations for each vehicle. This encourages renters to keep your vehicle out for longer periods of time and brings in more revenue over time.
Most of the time the recommended rate that is set on the platform is a good fit, if not, the next step is to contact our customer success team and we’ll help you find the right rate that will bring you more transactions.
That said, you have full control over what rates you set and always have the flexibility to adjust them to what is best for your business. As you get adapted to the marketplace, you may choose to make changes to the rate based on your vehicle condition, the seasonality, or the demand you’re seeing.
Certain factors may make you decide that it’s time to charge renters a higher price for daily use of your vehicle. You may want to consider this option if your vehicle is a newer model, in high demand, or offers any special features. We find that renters are willing to reserve vehicles at a higher value if one or any combination of these factors applies.
Just a heads up, if you do choose to increase the rate, this may result in a less competitive listing.
We recommend that you monitor the rental activity you see once you raise the rate. If you’re not receiving requests at the higher rate, it’s likely that the season of the year, condition of the vehicle, or market demand may not reflect its increased rate.
A great way to get your vehicle rented out faster, make a profitable decision for your business by lowering the daily rate. Common factors that lead to this choice would be if your vehicle is an older model, it doesn’t get reserved often, or if it’s just not the right time of year to ask a premium price for its specifications. For example, in our Dallas-Fort Worth market guide we showed a trend where dry vehicles tend to have less demand in the second-quarter.
Lowering your rate makes your listing more competitive, but try to keep it as high as possible to maximize your profit. Your business can also try a lower rate with a vehicle before unlisting it from the platform. If our recommended rate simply isn’t the right fit for the listing you’ve offered, a lower rate may yet attract more renters and have your vehicle generate revenue for your business.
Now that you know some situations that should affect a rental rate change for your vehicle, let’s cover how to adjust it. In just a few simple steps, you can set your rate once you’re logged in to your account.
Just as we encourage you to regularly update your vehicle’s availability, you should monitor the daily rental rate you charge renters and evaluate the results you’re seeing. Flexibility with your rates keeps your listing competitive and maximizes the revenue that you can earn with COOP. Reach out to our customer success team and we’ll help you find the best rate possible for your vehicle. Now that you’ve taken this profitable step, try some of the other ways to optimize your listing on COOP.