So you're starting a new inflatables bounce house rentals business? What do you charge for rental rates?
They seem to be regional and seasonal. West Coast charges less than East Coast, etc. Florida charges less than Minnesota. Make sense?
Take into account your expenses including storage, upkeep, original item cost, (divided by the amount of rentals you want to pay it off in), insurance, staff, vehicle. When you include your gas expenses keep in mind the fluctuation of the cost of gas. Then you must figure how many times minimum you must rent your items monthly. Once cost is covered put your profits on top of the hourly rental amount by adding anywhere from 100% to 300% to net cost.
Per rental offer 4 hours with a bonus price for all day. Each item should be rented 5-6 times weekly full time or monthly part time.
Do the math, if it is not enough money invest in additional products! Once you are known for rentals you will start getting calls for chairs and tables, concession items, carnival games and more.
Figuring rates: Bouncer at $1500 cost = $75 per rental total hours (to pay it off in 20 rentals)
Add to this the extras listed above per rental then put your profits on top. Remember, once it is paid off in 20 rentals the $75 costs per rental will become increased profit.
Keep them looking good, clean, safe. Insure your company against liabilities. Incorporate your business to keep your personal finances safe and separate.
It's a business but it's meant to be a fun one.
Monday, September 13, 2010
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