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Monday Morning Drive: The Updated Pricing Model for Former Rental Companies
Manage episode 459565260 series 3601368
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Let’s face a hard truth: Rental prices in our industry are made up.
There’s no standard pricing model other than what a group of suppliers devolved through local competition. For instance, when every company in town rented the same item for $400 per week, that became the market price.
We convinced ourselves these prices were correct through three types of validation: customers paid them, supply chains accommodated them, and competitors copied them. But this pricing structure had no connection to real value or prices in other markets.
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