5 min read
Why your four-week rental cost more than a month
Rental rates step down by duration, but the step is not automatic and four weeks is not a month. How rate tiers get applied wrong.
Three prices for the same machine
Equipment rents at a daily rate, a weekly rate, and a monthly rate, and the gap between them is large. A weekly rate is typically far below seven daily rates; a monthly rate is far below four weekly ones.
That structure is normal and reasonable. The problem is what happens at the boundaries, because the tier that applies is not always the one you would expect.
Four weeks is not a month
This catches people constantly. A month, in most rental agreements, means 28 days — or a calendar month, or 30 days, depending on whose paper you signed.
So a rental running 29 days might bill as a month plus a day, or as four weeks plus a day, and those are materially different numbers. Which one applies is a definition in the agreement, not a convention across the industry.
If you rent the same equipment for similar durations repeatedly, it is worth knowing exactly how your agreement defines a month. It changes what you should be quoted before the job starts.
The tier does not always step down on its own
If you rent something for four days and keep it for nine, you would expect it to reprice to the weekly rate. Often it does. Sometimes it does not, and you get nine daily rates instead — which can cost more than two full weeks.
Whether repricing is automatic depends on the provider's system and on your agreement. Some do it as a matter of course, some only on request, and some only if you call before the tier boundary.
This is worth checking on any rental that ran longer than planned, which in construction is most of them.
Negotiated rates that did not get applied
If you have a negotiated rate sheet or a national account, the rates on it should be what appears on the invoice. Frequently they are not, and the reason is usually mundane rather than sinister.
The branch quoted book rates because the account was not attached to the order.
The rate sheet was updated and the old one is still in the system.
The order was placed by a foreman on site rather than through the office, so the account never got referenced.
This is the easiest category to check and the easiest to get corrected, because it is a straightforward comparison: what the rate sheet says against what the invoice charged. No interpretation required.
How to check one yourself
Pick one piece of equipment from a recent invoice. Find the rate sheet or agreement that covers it. Compare four things: the rate charged, the rate agreed, the duration billed, and the tier applied.
If the rate matches and the tier is right, you are fine. If either is off, that is a question worth asking — and a specific one, which matters far more than a general complaint about pricing.
The short version
Check any rental that ran longer than planned. The tier is supposed to step down as duration crosses a boundary, and when it does not, the difference is usually larger than people expect.
Want us to check yours?
Send the invoices and the agreement behind them. We will tell you what does not add up within 24 hours, free. The findings are yours whether you work with us or not.