Contract or Pay As You Go?
A financial contract is all well and good when the financial climate is good. Small businesses during a recession are less likely to sign/agree long term/large contracts and for good reason. We all know how annoying it is when you sign a deal with say, a Mobile Phone or Mobile Broadband provider and a hugely better deal comes around a lot quicker than you ever thought it would. Dare I say it, if I wasn’t on an Orange Mobile Phone contract, I would almost certainly have gone for the iPhone pre 3g! But then of course, I would have been disappointed at the arrival of the 3g iphone which seems to be tonnes better.
The way forward is to have the ability to ‘chop and change’, using a pay as you go system. Take for example Car Rental or Van Hire, an industry which seems to being effected by car hire shortages. Of course the BBC is talking specifically about foreign holiday based car hire brokers, but overall the shortage is seemingly crippling the industry.
Do the working’s of an industry need to change as soon as possible to allow for small companies who need the use of rental vehicles at a reasonable price to rent at a competitive rate for day to day tasks, in a pay as you go fashion, rather then having the crippling long term financial commitments a contract brings?
Tailor-made packages need to be thought through, with emphasis on being client specific and client friendly. Could this be free delivery of vehicles within a 10-20 mile radius, or huge discounts for advance payments on pre-pay vehicles? Flexibility is the key to any business needs and perhaps there should be an overall re-think in the rental vehicles market…? Thus, saving money and ensuring business work together to get through uncertain economic climates.
Tags: car rental, iphone, pay as you go, saving money, van hire

