Rental Advisor’s Rule

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Rental Advisor’s Rule

08/30/2004

Payroll is a huge expense and a big part of the profit equation for all rental companies. If you are a general rental store, your total payroll (including taxes and insurance) should be in the range of:

A) 36%-40% B) 41%-45% C) 30%-35% D) 25%-29% E) Anything under 50% is acceptable

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The answer is C

If you are in the range of D give yourself an "A" for a grade and if you answered E, give yourself an "F." Payroll is the biggest enemy of profitability.

This RentalAdvisors Rule was submitted and created by Fred Hageman who can be reached at www.rentaladvisors.com.

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