Originally Posted by
IAHtraveler
Cool, thanks for detailing that!
It was kinda fun! It's VERY rough, though, and based on a
lot of guessing.
Originally Posted by
IAHtraveler
1. Avis used 7k intervals for PM on corporate cars/locations.
Sure, but if each rental is 3% of the total PM cost, it's really a statistically insignificant difference.
Originally Posted by
IAHtraveler
2. I really doubt it takes 20 mins (3/hr) for cleaning. I'd bet it's much closer to 6/hr judging by the cars I see/get.
You're right. A good agent can turn a car in 10 minutes. A great agent can turn one in five. One brand's corporate standard (for hiring purposes) is three per hour, so I used that as a measure of cost.
Originally Posted by
IAHtraveler
3. The time/money for counter staff shouldn't really be counted. They are already present when someone with a walk-up ressie comes along. It's possible that lots of walk-ups could change the staffing pattern, but I'd consider this cost fixed and not variable.
Excellent point. However, the same can probably be said about the detailing. So, that takes the staffing costs out of it completely, leaving us with pretty much leaves us with just the chemicals used in the wash ($0.50), parts/materials on the LOFR (~$0.25), and the mileage-based depreciation.
That last one is by far the largest component. The rental company actually comes out
behind on a $15 walkup who rents for four days but drives a thousand miles.
Of course, these numbers don't figure in incremental sales. A location holding at least an average $6 or so daily dollar average in optional extras could actually give the cars away for
free and still come out ahead on the average rental (as long as their sales agents are able to convince customers paying $0 for their cars that they should buy extra stuff
).