Trust is the main reason.
Some business owners do not trust that customers will be as careful as their team during the loading, unloading, and transportation.
They think that not all customers feel responsible, or have the right skills, or the vehicles to transport their items safely.
For example, an owner of an event decor rental may not want customers to load their delicate decor on the back of a small pickup truck without following loading procedures, as scratches, dents, or serious damages can occur during the process.
What do statistics say?
In the United States alone, in-transit damage costs around $1 billion, or 0.5 % of gross sales are lost for the same reason.
The statistics relate to the rental industry since the reasons for delivery damages are similar across all industries.
10 Valid Reasons Why the Local Pickup Option is Risky.

1. Poor handling.
You do not know the person who comes to pick up the item.
He or she may be irresponsible and handle your equipment like a careless person.
Have you seen YouTube videos where a delivery person throws packages into people’s yards to make his/her job quicker?
It can pretty much happen to your rental items as well.
Sorry for being pessimistic, but being safe than sorry is always a winner.

2. Improper packaging.
If you are the one doing deliveries or pick-ups, you can package products properly or stack them neatly before and after the event to protect your units from possible damage.
Customers, on the other hand, may not allocate the same amount of time or effort.
Mostly renters focus on speed. They want quick rentals, setups, returns, and get over with.

3. Inability to track shipments.
For example, when you use Reservety you can track delivery trucks using GPS.
So you do not miss the connection with your valuable equipment.
Conversely, if a customer uses the pickup option, you may not be able to check the delivery status (unless you put trackers on individual units).

4. Loss of income.
Delivery and installation are the most popular add-on services to generate additional income.
A client who wants delivery service may also be interested in installation, disassembly, and pickup services.
When a customer decides to pick up, you miss that opportunity.

5. Scheduling inefficiencies.
When you do deliveries, you can schedule deliveries using a particular system.
For example, the Reservety dashboard has a cool interface where you can manage orders, assign drivers, and track deliveries.
However, you do not have that same control when you offer a local pick-up option as customers may show up at their convenience.
Even though you can impose a specific pickup time frame, you will still face inefficiencies as you do not have control over customers’ actions.

6. Insurance issues.
Not all insurance companies allow local pickups as the practice is considered risky.
So, you must consult with an insurance agent first to ensure your items are covered for local pickups.

7. Uncompatible transportation.
Let’s assume that you rent out indoor event items such as linens, luxury tables, chairs, etc,
In this case, it would not be smart to let people pick up those items in their regular trucks as those items may be exposed to rain and other weather conditions, not to mention how crumbled they may get while on the truck.
On the other hand, you may already have suitable vehicle for transporting those items.
For example, a van with customized shelves will work better than stacking everything on the back of a truck.

8. Lack of control.
We have already mentioned that some people may not feel as responsible for your rental items as for their items.
Generally speaking, control or oversight can help to avoid potential asset damages.
For example, when you do deliveries, you watch over the whole handling and delivery process and require your staff to stick to loading and unloading guidelines.
That control is missing when you trust customers to pick up the items.

9. Possible conflicts with customers.
Any time you detect new damages or defects after returns, you probably point your finger at renters.
However, not all customers will be willing to admit their reckless actions or willing to pay penalties.
Therefore, avoiding the situations that lead up to such conflicts would be a smart thing to do.
And you can do it by doing the deliveries yourself.

10. Increased turnaround time between rentals.
Previously, we mentioned that the local pickup option is not good for scheduling as people may not pick up or return items on time.
This also increases turnaround time between rentals, which is bad for revenues.
Especially, the late returns are the problem. Yes, you can impose late fees but when the item is due for another pickup or delivery on the same day, the overlap will create a real mess.
Does that mean we should not offer a Pickup option?
It would be wrong to say that.
Sometimes allowing pickups will be more preferred than deliveries. It all depends on the product type, business model, and proximity between your business and customers.
Let’s take beach gear rentals.
If your business is near the beach, you could allow people to pick up items.
That way people will gain access to what they need instantly, and you will save yourself from additional hassle.
How to Implement a Hybrid Delivery Model?
Depending on the products and type of business, you may offer hybrid models, including both local deliveries and local pickups.
You can simply set it up using Reservety.
Once implemented, your customers can choose the preferred delivery method from the dropdown menu.
As a rental owner, you can customize the prices for each delivery method.
For example, you can set mileage-based, zip-based, weight-based, or flat-rate delivery fees so that the system will calculate the deliveries automatically once customers input their location.
You can set a local pickup option for free and manually update the shipping status of the order once the customer takes out or returns items.
Final Remarks
Let’s sum up.
Business some business owners prefer deliveries over local pickup due to the following reasons:
- Trust issues
- Insurance compliance
- Additional revenues
- Ability to track deliveries
- Quicker turnaround between rentals
- Efficient scheduling
- Avoid damages and conflicts
Before you go
If you are managing your deliveries by hand, we recommend Reservety.
It automates most of your rental operations transforming your business from a brick-and-mortar company to an innovative online business.
To test the software without long-term obligations or upfront fees, join the 14-day trial and experience the conveniences of Reservety.