In construction, equipment gaps happen. Whether it’s a last-minute request or a specialized machine not available in the fleet, many companies turn to third-party vendors to fill the need. This is known as a re-rent, where equipment is temporarily brought in from an outside supplier to support an internal project.
While re-rents are common, they are often treated as a reactive process rather than a financial strategy. That is starting to change. Contractors using RentalResult have begun building workflows that treat re-rents as controlled transactions that protect margins and deliver long-term ROI.
The Hidden Cost of Unmanaged Re-Rents
Without a clear strategy, re-rents can quietly eat into profits. Equipment is sourced, delivered, and used on the job, but the cost is never passed back to the project with a markup. The job gets completed, but the business ends up absorbing the expense.
This may seem minor in isolation, but when scaled across multiple projects and regions, the financial impact becomes significant. Inconsistent markup policies, manual approvals, and untracked re-rents create room for margin erosion and limited visibility.
How RentalResult Clients Are Changing That
Applying Standard Markups Automatically
One RentalResult client uses a system-based markup approach for all re-rented equipment. When a vendor’s rate is entered into the system, RentalResult automatically applies a 10 to 20 percent markup that is billed to the job site. This markup covers overhead, protects project margins, and ensures equipment is not delivered at a loss.
For example, if a boom lift is re-rented at $150 per day from a vendor, the job site is charged $165 to $180 per day. The rules are set at the account or project level, so there is no need for individual approvals or price adjustments.
Building a Preferred Vendor Network
Another client has streamlined their procurement process by establishing preferred vendor relationships. Over time, these vendors began offering more competitive rates and faster service due to the volume of business. RentalResult supports this by allowing preferred vendors to be flagged in the system so procurement and project teams can source quickly from trusted partners.
This process reduces downtime, avoids rate confusion, and helps build long-term vendor consistency across the company.
Helping Project Managers Make Smarter Decisions
Several clients are using RentalResult to give project managers visibility into the true cost of re-rents, including the markup applied. This helps them compare rented vs owned equipment usage, track trends, and decide whether to continue re-renting or invest in new fleet assets.
In many cases, consistent re-rents for the same item flagged an opportunity to purchase. In others, project teams learned how to better forecast equipment needs to avoid last-minute rentals altogether.
Why Percentage-Based Markups Work Best
While RentalResult supports both fixed and percentage-based markups, most clients prefer the percentage model. It automatically scales with the vendor rate, whether it’s a small compressor or a large excavator. This keeps internal charges fair and proportional while maintaining profit consistency.
Fixed markups can be more rigid and tend to require more oversight, especially when dealing with a wide range of equipment types and values.
Small Margins That Scale Up
The financial benefit of markup automation becomes clear over time. A 10 percent uplift may seem small on a daily rental, but when applied consistently across a national fleet operation, the totals add up quickly. One client noted that automating this process turned what used to be overlooked cost recovery into a six-figure gain over the course of a year.
Ready to See What This Could Look Like for You?
Re-rents don’t have to be a margin drain. With the right workflows, they can become a reliable, profitable part of your equipment strategy.
Schedule a call with a RentalResult expert to see how your team can start recovering re-rent costs and improving equipment ROI across every project. Book a time here.
