Pricing Types Reference

# Pricing Types Reference This reference guide explains all pricing-related types and options in RecSystems. Understanding these helps you create effective pricing strategies for your rental business. ## Price Modifier Types How the price rule changes the base price: ### 1. Fixed **What it does**: Sets exact price, ignoring base price **Example**: Set all holiday rentals to $500 **Formula**: Final Price = Fixed Amount **Use when**: You want consistent pricing regardless of unit ### 2. Percentage **What it does**: Adjusts price by percentage up or down **Example**: 20% early bird discount **Formula**: Final Price = Base Price × (1 + Percentage/100) **Use when**: Proportional adjustments make sense ### 3. Additive **What it does**: Adds dollar amount to base price **Example**: Add $50 weekend surcharge **Formula**: Final Price = Base Price + Addition Amount **Use when**: Fixed surcharges apply ### 4. Subtractive **What it does**: Removes dollar amount from base price **Example**: Subtract $25 for returning customers **Formula**: Final Price = Base Price - Subtraction Amount **Use when**: Fixed discounts apply ## Rule Types The purpose or strategy behind the price rule: ### 1. Standard **Purpose**: General-purpose rules **Common uses**: - Day of week pricing - Seasonal adjustments - Location-based fees - Special events ### 2. Demand-Based **Purpose**: Adjust based on availability **Common uses**: - Increase when inventory low - Decrease when excess capacity - Peak demand periods - Last available unit premium ### 3. Last Minute **Purpose**: Fill unsold inventory **Common uses**: - Same-day discounts - 24-48 hour deals - Clearance pricing - Standby rates ### 4. Early Bird **Purpose**: Reward advance bookings **Common uses**: - 14+ day advance discount - Seasonal pre-booking - Group reservations - Loyalty rewards ### 5. Volume Discount **Purpose**: Encourage larger bookings **Common uses**: - Multi-unit discounts - Fleet deals - Corporate rates - Event packages ### 6. Promo Code **Purpose**: Trackable marketing campaigns **Common uses**: - Email campaigns - Social media offers - Partner discounts - First-time customer deals ### 7. Loyalty Program **Purpose**: Reward repeat customers **Common uses**: - VIP pricing - Member benefits - Referral rewards - Anniversary discounts ## Charge Frequencies How often the price modification applies: ### 1. One Time **Application**: Once per booking **Best for**: - Booking fees - Processing charges - Promo code discounts - Volume discounts **Example**: $20 booking fee (adds $20 total) ### 2. Per Hour **Application**: Each hour of rental **Best for**: - Hourly surcharges - Peak hour pricing - Short-term rentals - Equipment usage fees **Example**: $5/hour premium (4 hours = $20 extra) ### 3. Per Day **Application**: Each day of rental **Best for**: - Daily rates - Weekend surcharges - Extended rental discounts - Seasonal pricing **Example**: $25/day holiday charge (3 days = $75 extra) ### 4. Per Week **Application**: Each week of rental **Best for**: - Weekly discounts - Long-term rentals - Corporate rates - Monthly equipment **Example**: $100/week discount (2 weeks = $200 off) ### 5. Per Month **Application**: Each month of rental **Best for**: - Monthly rates - Seasonal contracts - Long-term leases - Storage fees **Example**: $500/month rate (3 months = $1,500) ## Duration Types Which rental durations the rule applies to: ### 1. Open Ended **Applies to**: Any duration type **Use when**: - Rule works for all rentals - Mixed inventory - General pricing - Not duration-specific ### 2. Hourly **Applies to**: Hourly rentals only **Use when**: - Short-term specific - Peak hour pricing - Minimum duration rules - Hourly equipment ### 3. Daily **Applies to**: Daily rentals only **Use when**: - Multi-day discounts - Weekly rates - Vacation rentals - Daily equipment ### 4. Flexible **Applies to**: Flexible duration rentals **Use when**: - Custom time slots - Variable durations - Special bookings - Mixed-duration inventory ## Combining Types Examples ### Weekend Surcharge - **Modifier**: Additive (+$50) - **Type**: Standard - **Frequency**: Per day - **Duration**: Daily rentals ### Early Bird Special - **Modifier**: Percentage (-15%) - **Type**: Early bird - **Frequency**: One time - **Duration**: Open ended ### Holiday Pricing - **Modifier**: Fixed ($399) - **Type**: Standard - **Frequency**: Per day - **Duration**: Daily rentals ### Volume Discount - **Modifier**: Percentage (-10%) - **Type**: Volume discount - **Frequency**: One time - **Duration**: Open ended ### Last Minute Deal - **Modifier**: Subtractive (-$30) - **Type**: Last minute - **Frequency**: One time - **Duration**: Open ended ## Understanding Price Calculations ### Single Rule Example Base price: $100/day Rule: Add $25/day weekend surcharge Days: Friday-Sunday (3 days) Calculation: ($100 × 3) + ($25 × 3) = $375 ### Multiple Rules Example Base price: $100/day Rule 1: 10% early bird (one time) Rule 2: $20/day weekend (per day) Days: 2 weekend days Step 1: Base total = $100 × 2 = $200 Step 2: Weekend charge = $20 × 2 = $40 Step 3: Subtotal = $200 + $40 = $240 Step 4: Early bird = $240 × 0.9 = $216 ## Best Practices by Type ### Fixed Pricing - Clear communication - Show original price - Explain why fixed - Limited time use ### Percentage Adjustments - Keep reasonable (5-30%) - Stack carefully - Show savings clearly - Test impact ### Additive Charges - Itemize clearly - Explain value - Keep proportional - Avoid surprises ### Subtractive Discounts - Set minimums - Prevent negative prices - Track profitability - Time-limit offers ## Common Mistakes to Avoid ### Over-Stacking - Too many cumulative rules - Prices become confusing - Profits disappear - Customer frustration ### Wrong Frequency - Per-hour charge on daily rental - One-time fee recurring - Mismatched expectations - Billing errors ### Conflicting Rules - Multiple non-cumulative rules - Same priority levels - Unclear precedence - Inconsistent pricing ### Poor Timing - Last minute without inventory - Early bird too early - Demand rules when full - Season mismatch ## Related Guides - [Price Rules](../03-revenue-optimization/price-rules.md) - Creating rules - [Pricing Strategies](../03-revenue-optimization/pricing-strategies.md) - Strategy guide - [Booking Statuses](./booking-statuses.md) - Status reference - [Fleet Types](./fleet-types.md) - Equipment categories --- *Pricing Tip: Start simple with one or two rules, then add complexity as you understand your booking patterns.*