As a lender on FriendWithA, when you list an item, you can set up daily, weekly, or monthly rates. Our pricing model ensures a fair and balanced cost structure for both lenders and renters by progressively discounting daily rates as the rental period increases toward the weekly rate.
Example Rates:
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Day Rate: $40
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Weekly Rate: $160
How Progressive Pricing Works:
Instead of simply multiplying the daily rate by the number of days rented, we apply a progressive discount that transitions the pricing toward the weekly rate. This prevents renters from overpaying compared to the discounted weekly rate.
Example: 4-Day Rental
If someone rents your item for 4 days, the calculation works as follows:
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Day 1: $40
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Day 2: $36 (90% of the day rate)
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Day 3: $34 (85% of the day rate)
- Day 4: $32 (80% of the day rate)
- Total for 4 Days: $142 (before fees)
Rather than charging $40 per day ($160 total), the price is progressively discounted.
Example: 8-Day Rental
If someone rents your item for 8 days:
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Weekly Rate (7 Days): $140 ($20 per day for a full week)
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Additional Day: $20 (since the weekly rate makes each day $20)
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Total for 8 Days: $160 (before fees)
This model ensures that the per-day rate gradually reduces as renters commit to longer rental periods, making rentals more attractive while still fairly compensating lenders.
If you have any questions about how pricing is calculated, feel free to reach out to our support team!