You’ve got tons of choices and it feels risky. Price your items too high and they won’t rent. Price them too low and you’ll leave money on the table.
Let’s assume you’ve priced your items appropriately to pay your bills, grow your business, and pay yourself. If that is the case, you’ve got a healthy rental business. Now, your pricing strategy isn’t about sustainability or survival, it is about positioning.
Given the fact that you won’t go too low to keep your business afloat, the prices you set for your products can have as much impact as all of your other marketing efforts. You spend countless hours on your website and logo. These parts of your brand project a particular image about your company. Similarly, your pricing says a lot to your customers about who you are.
High-end pricing sets expectations for luxury products and service. Constantly offering bargain basement deals and discounts may leave your company looking cheap and low-quality. While price perception can be quite relative for your customers, in general, you’ll want to consider where you stand in the market compared to your competitors.
Some brands may choose to be just lower than the average to attract clients looking for a deal. Others, however, may choose to set prices above the rest of the market to gain cache.
Wherever you choose to position your rental company, consider that your pricing sets a tone. The expectations you set for your customers comes just as much from your price points as it does from the packaging, aesthetic, and sales process you’ve created for your company.