When renting increases productivity

Rental solutions gives the client more flexibility, while reducing the exploitation of resources for the economy. But that’s not all.

The adoption of this practice can actually be a chance to increase productivity, both for manufacturers lease out their products and for professionals who choose to rent their equipment. Here are a few reasons why.

Manufacturers will be able to better understand consumers’ expectations.

Increasing environmental consciousness of the companies, along with the growing tendency of consumers to favour temporary or ad hoc usage of products have contributed to the rise of what we call the Usage Economy.

In other words, an economy in which one pays for the use of a product, rather than for the product itself. In concrete terms, this often means renting instead of purchasing.

For manufacturers and sellers of products, the development of renting solutions and other usage economy practices is a way to develop a close, constant link with the client, and therefore to better understand their behaviour and expectations.  By being better prepared to respond to clients’ needs, the company improves its productivity.  This is one of the reasons that large companies such as Ford, General Motors, and Caterpillar have purchased peer-to-peer platforms (platforms that connect individuals who wish to exchange goods or services among themselves.)

Companies that use RENTAL will minimize unnecessary expenses…

Renting solutions also have an effect on the companies which are increasingly faced with multiple alternative methods for financing their equipment, apart from the traditional practice of buying. The option of renting can also help these companies increase their productivity.

When compared to purchasing, renting offers, first and foremost, a greater amount of flexibility: a company can rent equipment for a limited duration, to respond to a precise need.  Companies therefore avoid the risk of letting products — which were often costly to buy — fall out of use when no longer needed.  In other words, the company increases productivity and is able to spend less for the same result.

For example, agricultural professionals, whose equipment usage depends on the seasons, need exactly this kind of flexibility. By renting their equipment only for the necessary time period, they are able to greatly decrease their cost/production ratio.

...and benefit from the most recent technology.

Another way renting helps increase productivity is by allowing for equipment renewal, and thus for easier access to the latest technology.  At the end of each rental contract, the company has the option to choose a new product.  Thus, it can opt for a more modern product, which it may not otherwise have the money to buy.

The effect of technological progress is especially significant in the IT field, where new, better-performing products (computers, software, smart phones, etc.) are released onto the market every year.