AHennager
Contributor II

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Introduction


          Equipment Rental
 is a unique attribute of the Water Treatment industry. While contractors may be hesitant to offer these types of programs, consumers can find equipment leases attractive for a variety of reasons.

          When customers fail to qualify for traditional financing or prefer the lack of a credit check entirely, equipment rental could be an alternate route to explore. Financial constraints, especially during times of inflation and rising costs, has forced many to budget more strictly and consider substitute forms of transactions. Similarly, home renters may find equipment leases particularly practical since they aren’t committed to a permanent purchase. Equipment rentals may also be necessary for short-term projects or to maintain operation of existing systems while upgrades or replacements take place. Since situations may vary, equipment rental could be a sensible choice for certain customers.

          Rental agreements that provide customers with an option to purchase can provide value for consumers who wish to "try before you buy."  Such agreements might include terms and conditions which describe the parameters for committing to a system buyout. These terms and conditions usually offer up an incentive for buyouts, such as applying all monthly rent paid up until that point towards the overall purchase price of the system. As a result, rental agreements that include an option to purchase may provide your customers added comfort and confidence in knowing they are making a wise investment, and may help encourage sales that would not have been otherwise possible without presenting such alternate options.

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Equipment Rental in ServiceTitan

          In ServiceTitan, equipment rentals are configured using Memberships. Memberships allow you the choice between ongoing or fixed membership durations, as well as a variety of billing frequencies to choose from. A membership's Billing Template creates a standardized Invoice Template for membership billing. Automatic Billing Rules found in the Membership Billing screen can you help you automate your invoicing and billing efforts.

          Configurations for equipment rentals using Memberships may vary. Below are a few common configurations to be aware of if you're interested in offering equipment rentals through ServiceTitan.

 

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Rental Membership Types
 Single option

Example: Rental Membership

Rental Billing Template
 Universal price for all equipment rentals

Example: $50/monthly

Pros . . . 

+ Simple setup since there’s only one rental membership being configured.
+ Membership Types settings are kept clean and minimalistic.
+ Only one Membership Billing Task has to be created.
+ A pragmatic option if you have a limited selection of rental equipment offerings.

Cons . . .

If you prefer rental pricing by groups or individual system, this option isn’t for you.
May need to create multiple Membership Sale Tasks to help specify which equipment is being offered.
May limit available equipment rental options due to the Billing Template’s universal price.

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Rental Membership Types
➤ Group options

Examples: Softener Rental Membership, Residential RO Rental Membership

Rental Billing Template
➤ Varied prices, determined by groups

Examples: $40/monthly for Softeners, $50/monthly for Residential RO Systems

Pros . . . 

+ Offers balance between a single option and individualized options.
+ Offers greater default pricing specificity compared to a single Membership Type.
+ Offers more focused audience reach for Marketing Pro campaigns targeting Memberships.

Cons . . .

 If you prefer rental pricing by individual system, this option isn’t for you.

Extra setup needed for configuring separate Membership Types.
Additional Membership Billing Tasks have to be created.

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Rental Membership Types
➤ Individualized options

Examples: 2100s Softener Rental Membership, A200 RO Rental Membership

Rental
Billing Template

➤ Specific, individual prices

Examples: $64.25/month for Model X, $25.50/month for Model Y

Pros . . . 

+ Offers the most control and specificity for determining rental pricing by individual unit. 
+ Offers granular audience reach for Marketing Pro campaigns targeting Memberships.

Cons . . .

 If you prefer broad and simplified rental offerings, this option isn’t for you.
 Membership Types quickly add up and can can create complexity and confusion.
 Adds bulk to your Pricebook with numerous Membership Sale Tasks and Billing Tasks.


Additional Considerations

Store Payment Methods
➤ Store customer payment methods on file to help automate processing of membership billing.
➤ Payment methods are encrypted, so customers can rest assured their payment methods are safe.

Process Membership Billing
➤ Process payments for recurring memberships using billing runs.
➤ A billing run generates invoices, batches them after processing, and returns the results of the run.

➤ You can manually process billing runs or automatically bill memberships based on billing rules you set.

Membership Add-On Tasks
➤ Set up add-on tasks to customize a membership's Billing Template for individual sales.
➤ You can adjust the membership being sold by adding additional tasks towards the Billing Template.


Membership Billing Duration
➤ Rental memberships are often configured as ongoing, but fixed duration can also be considered.
➤ Membership add-on tasks used for adjusting billing templates are not applicable for fixed memberships.

Membership Billing Frequency
➤ Monthly billing is the most common option selected.
➤ Offering varied billing frequencies may be enticing to customers seeking more billing flexibility.

Recurring Services
➤ Memberships can be configured with or without Recurring Services.
➤ Recurring Services are needed for completing recurring maintenance, such as filter changes or salt delivery.

Rental Installation Fees
➤ Rental install fees are typically created as separate service line items and are usually based on system type.
➤ Be tactful about how you price rental install fees to ensure your team is profitable on rental installations.

Option to Purchase
➤ Be clear and upfront with customers about terms and conditions relating to equipment rental buyout options.
➤ Stipulations about a rental’s buyout can be included in the Item Description of the Membership Sale Task.


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Relevant Resources

Academy
Introduction to Memberships
Membership Billing
Selling Memberships
Setting Up Memberships

Knowledge Base
Memberships
Memberships FAQ