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Flexible booking prices: fixed durations, rate-based and weekend specials: only available on Fridays

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Optimizing Revenue with Flexible Pricing Strategies

Effective pricing is the backbone of a successful rental and resale businesses. Setting the right price isn't just about assigning a number; it's about offering flexibility that matches customer behavior while maximizing revenue. Understanding the difference between purchase prices (selling assets) and booking prices (renting assets) is the first step in utilizing a powerful Recommerce OS.

Flexible Booking Models

To cater to diverse customer needs, it is essential to utilize different pricing structures:

  • Fixed Package Pricing: Ideal for standard offerings. This allows you to set specific prices for fixed durations (e.g., a 2-hour session or a 3-day rental). It simplifies the decision-making process for customers looking for standard rental periods.
  • Rate-Based Pricing: This offers maximum flexibility. By setting a base rate for the first day and a different rate for subsequent days, you allow the system to automatically calculate costs based on the customer's specific pick-up and return dates.

Advanced and Dynamic Pricing Rules

Going beyond basic rates allows for sophisticated revenue management strategies. Advanced rules enable you to create targeted offers, such as "Weekend Specials." For instance, you can configure a 3-day fixed package that is only purchasable if the rental starts on a Friday.

Furthermore, dynamic pricing capabilities allow for granular control over profitability. You can adjust rates based on demand patterns, such as applying higher rates for weekend rentals compared to weekdays. Implementing these strategies ensures your inventory works harder for you, optimizing utilization and revenue automatically across all storefronts.

Clip from podcast episode.

Tuomo: On a more of a pricing option level, you can define purchase prices—so how much to actually buy the asset from you—and you can define booking prices, how much it costs to book the item from you.

Inside booking prices, you can define two kinds of prices. You can do fixed package pricing, so you have a fixed duration like two days or three days or two hours or two weeks, and you define a price for that. Or you can have rate-based pricing by saying that, alright, one day costs 50 bucks, any additional day costs 30 bucks. That is used in a way that your customers can then define when do they want to pick it up and when are they looking to return it, and the system automatically calculates the price for that duration based on that rate-based price rule that you did.

Now you can go even deeper than that if you want, which are the advanced pricing rules that you can define. Which are things like: I have a fixed package price for three days but it's only purchasable on Fridays. So that would be, for example, in an example for a weekend price. Twice makes sure in all of the storefronts, whether it's online or in admin, that pricing option is only purchasable if the start date is on Fridays. Same way if you do dynamic pricing for rate-based pricing, you can price for example weekend days with a higher rate than the weekdays.