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Thread: Calculating benefits and ROI for truck rental

  1. #1
    Jim1970 is offline Senior Member
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    Default Calculating benefits and ROI for truck rental

    Hello,

    Not sure if this is the right place to put this question - if I'm in the wrong spot, please let me know.

    Next week I will be suggesting to the owners that we start working on having a truck that customers can rent for in-town moves. I envision the truck being wrapped with our facilities information, and I see the truck as being a great way to be helpful to customers, while simultaneously marketing our businesses.

    One of the owners has stated he thinks there is too much risk and that these are too costly. He is a numbers guy, and he needs to see the bottom line on a project like this before he will jump. Problem is, I don't have a CLUE how to calculate the costs of this!

    Can anyone here with experience in renting a truck to customers comment on the costs and benefits?

    Thank you!

    Jim

  2. #2
    MamaDuke's Avatar
    MamaDuke is offline Moderator
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    Default Re: Calculating benefits and ROI for truck rental

    For costs, I recommend contacting On The Move. For the benefits, they are endless. I have been at properties with and without trucks. Having a truck is often the clencher in getting the rental. NOT having a truck is often the reason for NOT getting the rental! Hard to measure that in exact dollars.

    Add to that the fact that you WILL get a few rentals every year from people who saw the truck driving around just at the time they need storage. Makes it easy for them to decide at a time when they have too much on their minds.

    Not really much help with exact numbers, I know, but hopefully it will give you some direction.
    MamaDuke

    The art of life is to know how to enjoy a little and to endure very much.

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    Lisa T's Avatar
    Lisa T is offline Senior Member
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    Default Re: Calculating benefits and ROI for truck rental

    I agree with MamaDuke, who is also known as the Fountain from which all storage wisdom flows! Our free move-in truck is a HUGE draw here!

    And I have gotten many a phone call from someone who stated "I got your phone # off your truck, I'm sitting behind it at a red light" Gotta love the combo of cell phones and storage trucks!
    MamaDuke and lady5563 like this.

  4. #4
    SMSSId's Avatar
    SMSSId is offline Senior Member
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    Default Re: Calculating benefits and ROI for truck rental

    I think it all boils down to is how much risk the company/owners are willing to take. When we were shopping trucks, insurance was the biggest deterrent. After contacting the three big truck rental companies we settled for UHAUL. No, we don’t have our logo on the truck ( that would be nice ) but we still get tenants that rent units and or trucks. No maintenance, insurance, fuel and minimal headaches. Before you make a decision stop by the local UHAUL place and take a walk around their trucks and look for damage, scratches, dings, etc. What you see is what to expect with your truck or someone else’s.

  5. #5
    MRV
    MRV is offline Member
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    Default Re: Calculating benefits and ROI for truck rental

    The facility I utilize rents Penske - they're actually a Penske dealer for lack of better word. Was working really well for them until Penske opened a full facility down the highway that now competes with them, along with some satellite facillities like some local big box stores - all that impinge on their territory. Nothing like market saturation. One reason I don't do this - too many truck rental facilities within a few miles that are struggling for a piece of the pie. (and soon I'll have a big bob tail that I am lien sale'ing - I doubt I'll get bidders so it'll end up being mine...)
    So before you make the jump, make sure there is indeed a market - that doesn't require beating the competition on pricing.
    But if you want to do it, I can get you former UHaul bobtail for dead cheap!

  6. #6
    MZC&D is offline Senior Member
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    Default Re: Calculating benefits and ROI for truck rental

    We use On The Move, I think they are the best way to go. We lease a truck from them for 5 yrs and then at the end of 5 years there is a purchase option, or we can trade it back in to them I think, but we will be purchasing ours I know. They are not like being a dealer for some truck rental company that tells you what to do and how to do it. Now that being said what are your goals with your truck? Are you trying to bring in extra money with truck rental, or will you use it to help bring in more storage tenants? We use ours to bring in storage rentals. We offer a free move in truck, first time we charge $15 for insurance and then first 25 miles are free and only $0.25 a mile after that. If they want to rent it again it is $15 for insurance, $50 per day (these are all a 24hr rental) and $0.25 for all miles, we may eventually stop renting it out other then the free truck with move in. Our truck was brand new about 2 yrs ago, I think the truck costs us $831 a month, and that includes insurance, the only other thing to consider is truck maintenance, we do all of that in house so it doesn't cost us much at all. That being said we actually lose money on the truck itself, maybe bring in $200 -400 a month in truck rental income, but we usually gain a few customers a month that the truck seals the deal, and if they stay for say 6 months then the truck was well worth the investment. I would love to get a second truck from them someday, but we are not ready for that just yet.
    J_Buckler likes this.

  7. #7
    lenmay is offline Senior Member
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    Default Re: Calculating benefits and ROI for truck rental

    A huge part of the results depends upon one question "Is the place you park the truck highly visible to slow moving traffic?"

    My facility is off the main road and not very visible and we rent UHauls. We make about $3,000 per year with no risk. The trucks sit idle 80+% of the time.

    If the truck is highly visible while sitting, it will bring some customers. A sign for your facility would help, some. I am not sure it would bring a lot of customers since the vast majority of storage users DON'T rent a truck.

    We looked into owning a truck. Didn't like the liability and depreciation compared to benefit.

    We settled on a third option. We offer a "Free One Day rental." They use us to reserve a UHaul truck and we get a 20% commision. It is THEIR rental. They pay all and there is no liability. We give credit, on the first full month's rent for the base rate, $19.95 or $29.95 depending on size of storage unit. THey pay mileage, insurance, taxes.

    One out of six or seven will take us up on this offer. We get to offer a "Free Rental" and it costs us $3 to $4 average cost to us per renter with no liability. You can go to www.EasyMoveMS.com to see how we structure the offer.
    Billings Storage likes this.

  8. #8
    J_Buckler is offline Junior Member
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    Default Re: Calculating benefits and ROI for truck rental

    I am an associate here at On The Move and would be delighted to answer any questions you may have. Please give me a call at 830.428.0781 and I can cover all of your needs.

    Jarred Buckler

 

 
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