To enable the minimum total fee, you must go into your Online Quoting settings. By default, this is selected to "No" and you want to ensure your settings are set up correctly for this to apply. In order for the minimum total fee to apply, you will need a minimum rental total implemented into your Distance Charges in the Totals section. For more information on distance charges, see this article.
For example, in the distance charges, in order for you to travel anywhere from 0-50 miles, you're asking your customers to spend a minimum of $1000.
If your customers do not spend at least $1000 within this radius, they will then receive an alert at the top of their quote page, where they can choose to continue shopping and add more items to their cart to meet this criteria, or to pay the difference in price to make up for the minimum total. If your customers pay the difference, they will be able to continue to book and the difference will be added to their order.
Enabling a Minimum Total Fee for your company can offer several benefits:
- Revenue Assurance: Implementing a minimum total fee ensures that your company earns a minimum amount of revenue from each booking, regardless of the size or duration of the rental. This helps in maintaining a steady stream of income and mitigating the risk of low-value bookings that may not be profitable otherwise. Most often, when you don't want to rent just tables and chairs, but still allow your customers to pay a difference to make up for that.
- Cost Coverage: Setting a minimum total fee allows your company to cover its fixed costs associated with renting out equipment, such as cleaning, maintenance, and administrative expenses. This ensures that even smaller bookings contribute towards covering these overhead costs.
- Efficiency in Operations: By discouraging very small bookings, a minimum total fee can streamline operations and reduce the administrative burden associated with managing numerous low-value transactions. This allows your company to focus on more profitable and efficient use of resources.
- Value Proposition Reinforcement: A minimum total fee communicates the value of your company's services and equipment. It sets a standard for the minimum investment required to access high-quality rental items and services, reinforcing your company's brand as a provider of premium offerings.
- Customer Expectations Management: Clearly stating a minimum total fee helps manage customer expectations upfront. It ensures that customers understand the cost structure and are not surprised by additional fees or charges later on. This transparency can enhance customer satisfaction and trust in the company.
- Profit Maximization: By encouraging bookings that meet or exceed the minimum total fee, the company can focus on maximizing profitability per transaction. This allows for better resource allocation and strategic pricing decisions to optimize revenue generation.
Overall, enabling a minimum total fee for a party rental company can contribute to revenue stability, cost coverage, operational efficiency, customer satisfaction, and profit maximization. It serves as a valuable tool for managing both financial performance and customer relationships in the rental business.
Enabling a Minimum Total Fee for your company can offer several benefits to customers:
- Simplified Pricing: Customers benefit from clear and straightforward pricing structures when a minimum total fee is in place. They can easily understand the minimum cost required for their rental, helping them budget more effectively and avoid surprises.
- Access to Quality Equipment and Services: By setting a minimum total fee, your company ensures that customers have access to high-quality equipment and services. Customers can be confident that their rental items will be well-maintained and reliable, contributing to the success and enjoyment of their events.
- Enhanced Value Proposition: A minimum total fee reinforces the value proposition of your company. Customers understand that they are investing in a professional service that delivers quality products and support, enhancing their overall experience and satisfaction.
- Streamlined Booking Process: With a minimum total fee in place, customers can enjoy a more streamlined booking process. They can quickly assess whether their rental needs meet the minimum requirements, reducing the time and effort required to complete their reservation.
- Assurance of Availability: Customers benefit from greater assurance of availability for their desired rental items when a minimum total fee is enforced. Since the company prioritizes bookings that meet or exceed the minimum fee, customers are less likely to encounter availability issues or last-minute cancellations.
- Value for Money: While customers may initially perceive the minimum total fee as an added cost, they ultimately benefit from the value it provides. The fee ensures that your company can maintain its standards of quality and service, resulting in a positive and memorable experience for customers.
Overall, enabling a minimum total fee for your company enhances the customer experience by offering transparent pricing, access to quality products and services, and a streamlined booking process. Customers can enjoy peace of mind knowing they are investing in a reputable and reliable rental provider for their events.