Local delivery is a great way to connect with new customers, drive bookings, and provide a better customer experience. More and more people expect a contact-free alternative to pickups and local deliveries provide this option for customers. By allowing customers to have their rental products delivered, you could reach more people.
With so many rental orders to deal with, it can often become difficult with just a brick-and-mortar store. So, many rental companies have started offering local delivery. In addition, some rental businesses have been able to operate solely on local delivery with no actual store.
Let’s look at if local delivery is right for your rental business and how you can set it up to work for you. We’ll take you through what it is, how it can help your business and how you can develop the logistics to make it successful.
What is local delivery?
Essentially, local delivery allows your customer to rent a product online and have it delivered to their door. It is an excellent alternative to in-store pickup and can be easy to set up for your rental business. In addition, many people are still cautious about the effect of being in a store, so it provides safety to them and yourself. Finally, it helps you to provide a more personal service to your customers.
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Why local delivery works for rental businesses
Local delivery addresses three key customer pain points that often prevent bookings:
- Accessibility: Customers without vehicles or those unfamiliar with your area can still access your products. This includes tourists, elderly customers, and anyone dealing with transportation challenges.
- Time constraints: Many customers can’t visit your store during business hours. Delivery lets them receive products when it works for their schedule.
- Group logistics: Wedding parties, corporate events, and family gatherings become much easier to serve when you bring equipment directly to the venue.
Key business benefits of local delivery
Local delivery can enable you to offer a more thoughtful rental experience for your customers and help generate more bookings. Let’s dive into how local deliveries can help you build a connection with customers, improve customer experience, and increase bookings.
Higher booking conversion rates
Data from successful rental businesses shows that offering delivery increases conversion rates by 30-50%. When customers see delivery as an option during checkout, they’re more likely to complete their rental.
Expanded customer base
Without delivery, your customer base is limited to people who can physically visit your store. With delivery, you can also serve:
- Hotel guests and vacation rental visitors
- Event planners working at venues across your area
- Customers with mobility challenges
- Busy professionals who can’t visit during store hours
Increased average order value
Customers often rent additional items when delivery is available. Since they’re not limited by what they can carry, average orders tend to be 20-35% larger.
Competitive Advantage
Most rental businesses still require pickup. Offering delivery immediately sets you apart from competitors and gives customers a reason to choose you over others.
Start with building your rental website
Every new rental business starts with a website to get their first bookings.
How to set prices for local delivery
There are a few different ways you can set prices for local deliveries, and it will depend on your business model and the type of products you rent out. Here are some of the most common ways to set prices for local deliveries:
- Flat rate pricing: Charge the same delivery fee regardless of distance within your zone. This simplifies pricing and customer understanding.
- Distance-based pricing: Charge based on miles from your location. This ensures you cover costs but can be more complex for customers to understand.
- Order value thresholds: Offer free delivery on orders over a specific amount. This encourages larger orders and can increase your average transaction value.
The Booqable deliveries app allows you to set delivery prices based on these pricing models. This gives you the flexibility to set the pricing method that best suits your business needs.
Next steps
Local delivery can significantly impact your rental business by making your products more accessible to customers. Start small with a limited delivery zone and basic equipment, then expand as you learn what works for your business and customers.
The key is getting started. Even a simple delivery service using your personal vehicle can help you test demand and refine your process before making larger investments.
Focus on providing excellent service to your first delivery customers. Their positive reviews and word-of-mouth recommendations will help grow this part of your business naturally.
