Inventory Purchase Decisions
I track two key metrics to guide my purchasing decisions: 1. The number of missed rentals per month 2. The number of times I’ve had to re-rent per month I won’t make a purchase decision unless I have at least three consecutive months of data showing that machine would have met my base utilization for profitability. I’d love to hear the group’s thoughts on this approach. Does this align with how you evaluate potential purchases? And what metrics do you rely on to make those decisions?