1. Vehicle Rental Analysis
Prepared specifically for Lariat Rent-A-Car
By DA Consultants, LLC
~ Includes observations and recommendations for profitability~
2. Background
Lariat Rent-A-Car has contracted DA Consultants, LLC, to perform some
analysis of vehicle data for the 2018 fiscal year.
The company owns fifty branch locations across the United States,
including the following locations:
• Atlanta, Georgia
• Denver, Colorado
• New York City, New York
• Los Angeles, California
3. Background
In each of the company’s fifty locations, there is the potential of 73
vehicle makes with the top four makes earning more than $1,000,000
profit being:
• Ford
• Chevrolet
• Dodge
• Toyota
These makes have a variety of models, as seen in the dataset.
4. Goals
• The company’s management team has a belief that certain makes of
vehicles are rented more often than others, but they aren’t sure. They
also want to know if, on average, some vehicle makes are more
profitable than others.
Their primary goal is to get suggestions for increasing overall
profitability across all of their branches.
5. The Data
• Lariat Rent-A-Car has provided the following dataset from the 2018
operations. The dataset includes four data files:
• Car_id_mapping (maps a unique id to vehicle make and model)
• Car_costs (2018 costs to maintain each vehicle)
• Car_revenue_fixed (number of rental days, branch id, and rental price
per day)
• Branch_location (branch id mapped to city, state and if airport
location)
6. The Process
DA Consultants has taken the dataset and combined it in such a way as
to make it ready for analysis.
The analysis has been performed, and key findings were noted, along
with recommendations to company management.
The information follows…
7. Key Findings
Three things in particular were found during the analysis of the data.
The first observation is that:
1. The majority of vehicle rentals were by the make Ford.
8. Key Findings
The second observation is that:
2. Ford was the most profitable vehicle make in 2018.
9. Key Findings
The third observation is that:
3. The vehicle makes that make the most profit per day were
mainly less rented in 2018.
10. Your Two Scenarios
Scenario 1: Experiment with changing the number of annual rentals for each of the
vehicle makes:
Scenerio 2: Experiment with changing the amount of profit per day for each of the
vehicle makes:
As you experiment with these vaults, take note of the impact on annual profit.
Vehicle Make New Days Rented New Profit/Day New Annual Profit*
Ford 28,303 $73.17 $2,070,810.27
Chevrolet 25,811 $71.65 $1,849,398.39
Dodge 18,463 $72.27 $1,334,281.44
Toyota 15,182 $70.79 $1,074,666.40
You can change the values below!!!
Vehicle Make New Days Rented New Profit/Day New Annual Profit*
Ford 28,303 $73.17 $2,070,810.27
Chevrolet 25,811 $71.65 $1,849,398.39
Dodge 18,463 $72.27 $1,334,281.44
Toyota 15,182 $70.79 $1,074,666.40
You can change the values below!!!
Vehicle Make New Days Rented New Profit/Day New Annual Profit*
Ford 28,303 $73.17 $2,070,810.27
Chevrolet 25,811 $71.65 $1,849,398.39
Dodge 18,463 $72.27 $1,334,281.44
Toyota 15,182 $70.79 $1,074,666.40
You can change the values below!!!
11. Recommendations
DA Consultants suggests taking on more profits from Ford vehicles and
taking fewer profits from Lamborghini.
You should assume you’ll get fewer Ford vehicle rentals and more
Lamborghini rentals. You’ve been provided a separate workbook with a
model to experiment with what-if scenarios:
Vehicle Make New Days Rented New Profit/Day New Annual Profit*
Ford 28,303 $73.17 $2,070,810.27
^ Click on cell to change vehicle make ^
Vehicle Make New Days Rented New Profit/Day New Annual Profit*
Ford 28,303 $73.17 $2,070,810.27
Chevrolet 25,811 $71.65 $1,849,398.39
Dodge 18,463 $72.27 $1,334,281.44
Toyota 15,182 $70.79 $1,074,666.40
You can change the values below!!!
User Scenerios
Change
these
values!
12. Call to Action
The chart below shows the effects on profits after reducing annual
rentals and increasing profit/day for Ford and Lamborghini vehicles.
Vehicle Make 2018 Days Rented 2018 Average Profit/Day 2018 Annual Profit
Ford 28,303 $73.17 $2,158,767.41
2018 Baseline by Vehicle Make
Grand Total: $22,951,311.38
Vehicle Make New Days Rented New Profit/Day New Annual Profit*
Ford 28,000 $80.00 $2,240,000.00
You can change the values below!!!
Lamborghini 2,234 $82.94 $190,737.11
User Scenerios
Lamborghini 2,450 $80.00 $196,000.00
12.5%. Use combined_profit_loss_data for vehicles information.
13. Next Steps
There is other information that company management may find useful,
such as specific vehicles that are losing profit every year or comparing
profitability of vehicle models or branch locations. That is out of the
scope of this project, but it could be considered as a next step for
analyzing profit models.
Please contact DA Consultants, LLC for your future analytics needs!