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Bill Morgenstern, CEO of Rent Way, once said "You can't rent
air for less than 8 bucks a week". Truer words were never
spoken.
To calculate your 'break even' rental rate, follow the simple
formula below.
Take your total expenses divide by the total number of
agreements. Divide this number by 4.33 to find the break even
point per week.
Example:
Expenses = $12,000
Total Agreements = 400
$12,000 / $400 = $30 Expense per agreement per month
$30 / 4.33 = $6.92 per week
This is just an example. Actual numbers will differ from
company to company, and in some cases, store to store.
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