Additional rental revenue
Higher utilization turns idle vehicle-days into rental days. The contribution margin is applied, because an extra day carries cost as well as revenue.
L1 = operatingDays × uplift
× ADR × marginMODEL YOUR ANNUAL SAVINGS
Model the annual value of more rental days, fewer manual hours, lower revenue leakage and a better direct-to-broker mix. Your assumptions, your numbers — and the result appears without a form.
Rough figures are fine. Anything you leave at zero simply contributes nothing.
These are yours, not ours. They start conservative and they are capped — so the model cannot produce a number you would not defend.
An additional rental day is not pure profit. This margin is applied to the two levers that create rental days, which is what separates a defensible model from a vendor estimate.
Five levers. Nothing hidden behind a methodology link, because a number a buyer cannot audit is a number they will not use.
Higher utilization turns idle vehicle-days into rental days. The contribution margin is applied, because an extra day carries cost as well as revenue.
L1 = operatingDays × uplift
× ADR × marginEvery point of booking mix moved from broker to direct keeps the commission you would have paid on that revenue.
L2 = rentalRevenue × shift
× commissionHours no longer spent retyping bookings, chasing documents and rebuilding reports, valued at your loaded staff cost.
L3 = hours × 52 × cost
× reductionDamages, fines, tolls and post-rental charges that currently go unbilled because nobody connected them back to the rental.
L4 = unrecovered × recovery
Vehicle-days lost to avoidable downtime, valued only at the rate they would actually have rented at.
L5 = downtimeDays × reduction
× ADR × utilization × margin