Generate Best Rental Quotations in 2022 (Essential Guide)

Learn to generate rental quotations if you are starting a new equipment rental business or expanding an existing one, it’s essential to generate a reliable quote flow to keep your business running smoothly.

If your client asks you to create and expects you to send a rental offer, it means that the client is thinking of doing business with you, which may be a good opportunity for you.

But how do you go about generating quotes? In this blog post, we will be discussing some tips and tricks so that you start making an accurate quote for your rental business.

However, preparing the rental quotation can be a daunting task. It requires understanding your options, knowing your market, and knowing how to make your customers feel valued. There are a few things to consider when preparing an offer.

You can use Word documents, Excel spreadsheets, or Google documents. Next, you need to collect all relevant information. B. Asset rental price, quantity, and discounts that may apply to the asset category or its specific customers.

Once you have all this information, you can start making offers.

What is a Rental Quotation?

A rental quotation is an agreed fixed price between the lessor and the lessee. It is a formal document that describes the various assets and services offered for a certain date range.

Why do you need to generate rental quotations?

An office lady is preparing a rental quotation.
Source: Pexels

As a rental business owner, you do not want to promise something you cannot deliver, and the rental quotation allows you to clearly define the scope of your offering along with services.

  • It strengthens the understanding between you as the rental merchant and renter.
  • Legally protect lessee which makes them more likely to rent from you.
  • Gives you an opportunity to state your rental terms and conditions.
  • Helps you to structure your rental pricing and additional services you offer.
  • Maintain transparency between lessor and lessee
  • Encourage the renter to make a firm decision to close a deal.

What are the elements of a quotation?

The first step to generating a rental quotation is to understand the needs of your prospective rental buyers (renter). You should know what your renter is looking for in a rental quotation so that you can provide it precisely.

For example, if you are looking to generate a rental quote for a small equipment business, your customers will be looking for a basic price quote with standard other services.

However, if you are looking to generate a rental quote for large equipment, your customers will be looking for more comprehensive options.

Here is the list of the standard list of items that I think will be helpful to give you a very good understanding to generate quotes and win the sales for your rental business.

Some of the fields are self-explanatory and I’m not going to elaborate further, but just in-case if something is unclear then please find a way to reach out to me for a detailed explanation.

  1. Business details – you need to clearly provide the details of your business.
    • Logo – believe me your logo really makes a difference. It helps your customer to recognize and remember you. Just in-case if you have no logo yet then hiring a designer can be your best bet. Or, you can navigate into Canva to easily create logos on your own with little or no graphic designing knowledge.
    • Company name – the registered business entity name.
    • Pickup address – a specific address for a renter to pick up the rented assets.
    • Return address – so that the renter will return rented assets to this specific address.
    • Mobile – since a lot of us are so used to WhatsApp why not share that number so that it will be easier for the renter to communicate with you via text messages?
    • Email – the communication can be done through the email
    • Website – it is very important to show your customer that you have actually got an online presence. If the website is not designed then get it done through a professional or if you are willing to spare some time then you can use WordPress to get it a professional-looking website. You can host the website at Bluehost which also provides you with a domain.
  2. Quotation header
    • Quotation Number – this can be the auto-generated number for the purpose of traceability.
    • Quotation date – the actual date when you actually created the quotation in your system. Of course, you can internally track the revisions (if any) for the purpose of traceability or analytical purpose.
    • Pickup and return date – it is essential to mention dates because the rental pricing may differ based on the season.
    • Rental duration – you clearly need to calculate the duration whether it can be in hours, days, weeks, months, or your preferred unit of time.
  3. Quotation details
    • Asset
    • Quantity
    • Rental price
    • Discount
    • Discount reason – it is better if you can provide the reason why the discount is given for this quotation.
    • Line total = ((rental price * quantity) – discount)
    • Security deposit
  4. Quotation validity – it is very important to mention the validity of the quotation and that can be in the number of days.
  5. Customer particulars
    • Company/individual – the name of your customer or the company.
    • Contact details – if you can get multiple contact details along with their phone numbers would be even better.
  6. Internal reference number (if any) – some rental customers may have their own tracking number/file number for the
  7. Other details – who prepared the quotation? Knowing the user can be helpful to calculate the internal commissions to your staff if the rental quotation gets confirmed into the rental order.
  8. Terms and conditions – I just cannot stress enough to provide the detailed terms and conditions and take a moment to also explain to the renter (if required). You may need to think of how to handle the following scenarios and I would suggest you mention them in the quotation
    • Penalties
    • Late returns
    • Damages
  9. Payment Terms – if you are agreeing on non-standard payment terms then it would be wise to clearly mention them in the rental quotation. Otherwise, believe me, it is easy to forget.

How to generate a quotation for your rental business?

Well, here are a few ways that you generate quotations. Of course, you have a few choices:

Manual

When the spreadsheets and sophisticated information systems weren’t around – then we had no choice but to use the traditional way of getting the booklets printed with a nice logo and very precise and limited information on it.

I remember those days when we had to use carbon copy (cc) to make copies so that the original will be given or sent to the customer.

Thanks to the advancement in technology, now we have spreadsheets and robust and proven equipment rental management software programs to help you to streamline your entire order management system all the way from quotation to the completed orders and then invoice generation.

The best part of using this software is that you will be able to store the data somewhere on the cloud on your premise, depending on the setup but using either method you should be easily able to retrieve on-demand.

Spreadsheets

This method gives you a bit of control but requires you still create quotations on your computer, let’s define what exactly you need to use this method.

  1. A computer
  2. Microsoft Excel
  3. Google Spreadsheets
  4. Apache OpenOffice
  5. Microsoft Word
  6. Internet connectivity (if you are using Google Spreadsheets or if you are using Microsoft Excel 365)

Last night, I just created a very basic example just to share with you all on actually how the quotations can be created using Excel but don’t be surprised that you can actually create very beautiful quotation templates in Excel including your Logo and a lot of other information.

The rental quotation is displayed in Microsoft Excel.
Rental quotation template, created using the Excel Spreadsheet.

A preview of the same rental quotation template to show you how it looks when you want to print.

Rental Quotation Excel Template Preview
Rental quotation template in a preview mode, created using the Excel Spreadsheet.

But, as many of you know that spreadsheets do come with their own limitations. I will not rant about the limitations of Excel in this blog post but maybe will write a separate blog post to list down the limitations of spreadsheets and describe how the applications are solving these specific problems.

You will quickly start to experience those limitations when you start to generate a lot of rental quotations for your customer.

Please be reminded, that all of your files will be sitting on your computer if you are working on your local copy of your software program. So, it is extremely important for you to take regular backups of rental quotations just in case of any disaster you should be able to recover with less effort.

Website

As a matter of fact, you can provide a “call to action button” right on your website, the functionality will be provided to your users to provide the standard information and the quotation will be created with ease.

Your visitor will be doing quite a bit of heavy lifting by providing you with a piece of very precise information in the format you would like to receive probably on a web form.

You can implement it yourself if you have a technical background otherwise you can consider hiring a freelancer or ask your friend for help in exchange for a cup of coffee…

Online Tools

There are plenty of reliable websites where you can make beautiful rental quotations for either free or also paying a little fee. I strong suggest since you are doing a serious rental business then it would be best that you try to avoid free stuff.

Sometimes, the free stuff you get online usually comes with its own limitations such as watermarks or after some time you won’t be able to retrieve those documents. So, the data retention period will be less.

Canva is one of the reliable websites which has very creative and beautiful free or premium templates to create rental quotations, you can easily customize according to your branding colour and standards.

Rental Quotations: Conclusion

In conclusion, there are a few things you need to keep in mind when generating a quotation for your rental business. Make sure you include the rental period, delivery and pick-up charges, and any other relevant charges.

Also, be sure to clearly state the terms and conditions of the rental agreement. Following these tips help you to create a rental quotation to close the deal.

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