Dealer Rentalnomics—
2014 and beyond

Part 1: The new economy of rental

By Garry Bartecki, CPA, MBA
Dealer-Rental Success LLC

There is little doubt that rental is here to stay. The American Rental Association estimates that North American equipment rental revenue will grow from approximately $38-40 billion in 2014 to $50-53 billion in 2018. If you are the CFO or finance VP of a dealer, service, or rental company—this paper by Garry Bartecki is a must-read to stay abreast of how to successfully support the financial side of your business during the rental transformation.

Part 1: The new economy of rental is the first in a series of three on "rentalnomics"—the new economy of rental. This first paper will provide key insights into the rental market and discuss the two methods used to account for rent to sell (RTS) and rent to rent (RTR) transactions and the effect on gross margin and ROI of the two methods. In the last section in this paper, we will talk about how the disruptive forces in the industry can change your market share and brand.

Future papers will go into more detail on the new business models created by the rental growth, what rental leadership looks like and provide concrete recommendations and advice on how to ensure success with your rental transformation process.

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