I am trying to work out how to set rates for a rental business problem.
If a car or other item was to be rented for say $160 a week (7 days) and one wanted to set the rates for rental up to 14 days - how would you work out what to charge for the daily rate versus for 2 days, 3 days, 4 days and up to 14 days?
Presumably you would want the rate for 1 day to be high in comparison to a weekly or 2-weekly rental (ie the longer you rent it, the cheaper (relatively) it would be? can anyone give me a working formula to work this out based on the cost of the weekly rental? please help! Thanks!