Calibrating Equipment Rates

摘要

It is rate-setting season again. We know about last year, this year is well under way, and we are thinking about the rates we need to change to be successful next year. Do we set conservative rates that will ensure we recover the full cost of owning and operating our fleet; or do we set challenging rates that will put us in the best position at the bid table, even if it means under-recovering some of our true costs? Two years ago on these pages, we described the rate-setting process as "probably the most difficult, contentious and important task that an equipment manager needs to perform" (Accomplish the Most Important Task, June 2014). We published a flow chart that detailed the process, but now let's illustrate the important concepts using the nearby spreadsheet as an example.