Utilization 101 by ProQuest


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									E V E R Y BODY ’S BU S INE S S
                                                                                                                                                            In Memoriam
                                                                                                                                                             Phil Merrick
                                                                                                                                                            1959 to 2009

   Utilization 101                                                                      Published by:                              1233 Janesville Avenue
                                                                                                                                   Fort Atkinson, WI 53538-0803
                                                                                                                                   Fax: 920-563-1700

   Track dollar and time utilization for each piece of                                  Group Publisher                           Kris Flitcroft, ext. 1646

   equipment, as well as your entire inventory                                          Associate Publisher                       Eric Servais, ext. 1713
                                                                                        Editor                                    Jenny Lescohier, ext. 1647
                                                                                        Managing Editor                           Lisa Cleaver, ext. 1673

             or equipment rental businesses – like most                                                                           lisa.cleaver@cygnusb2b.com
                                                                                        Columnist                                 Dick Detmer
             businesses – the most important factor to                                  Sales Representatives                     Barb Levin, Rick Monogue, Tammy
                                                                                                                                  Jefson, Amy Schwandt, Nancy Terrill,
             success is cash flow. The more times a piece                                                                         Ryan Mountain
             of equipment is rented, the more money it                                  Sales Services                            Kasey Strike
                                                                                        Production Director                       Steve Swick
   brings in, which pays for fixed costs such as payroll,                               Production Services Representative Kathy Hahn
                                                                                        Art Director                              Dave Haglund
   debt service and so on. If enough revenue is gener-
                                                                                        Audience Development Mgr                  Jackie Flack
   ated, the business turns a profit.                                                   List Rental — Elizabeth Jackson, Account Executive, Merit Direct LLC
                                                                                        Phone: (847) 492-1350 ext. 18
       Savvy rental businesses know there’s a bit more                                  Fax: (847) 492-0085 • ejackson@meritdirect.com
   to it than that, but the concepts behind running a                                   Reprints — To purchase single article reprints (minimum 250)
                                                                                        for distribution please contact PARS International at
   profitable rental business are not too complicated.                                  212-221-9595 x431 or at www.magreprints.com/quickquote.aspx?ID=cygnus

   One of the most important yard sticks to measuring         Jenny Lescohier, editor   ForConstructionPros.com
                                                                                        Associate Publisher                        Norine Conroy, ext. 1330
   success in a rental business is utilization.                                                                                    norine.conroy@cygnusb2b.com
                                                                                        Editor                                     Sam Simon, ext. 1319
       There are two different utilization metrics. The first is time utilization,                                                 sam.simon@cygnusb2b.com
   which refers to how much time a piece of equipment is out on rent. It can be         Website Manager                            Jacob Bare
                                                                                        Website Graphic Designer                   Ryan Wengel
   measured in days, weeks or months. Without time utilization, nothing else            Media Services Representative              Kathy Hahn
   matters. In other words, if a piece of equipment is not being rented, it is not      CYGNUS BUSINESS MEDIA
                                                                                        Chief Executive Officer                    John French
   generating cash flow.
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