Current State of the Party Rental Industry

Parties and major events are a regular affair in the United States. They are organized for weddings, fundraisers, office events, and other special occurrences.

Commonly, companies in the party rental industry provide items and equipment to accommodate attendees of these events. Rented items can include tables, chairs, linens, dishes, and other similar items. Ordering these items in bulk from a reputable event rental company usually ensures that an event goes on without a hitch.

Market Size and Growth Insights

The party rental industry is big business in the United States. Currently, the industry has over a $5 billion market size. Over 10,300 companies are operating in the event rental industry, and they employ more than 45,000 workers across the country.

Interestingly, no major players are holding a significant share of the market. The three largest companies control less than 10% of the entire industry. These companies include Arena Americas, Bright Event Rentals, and Party Rental Ltd.

Companies that operate within the party rental industry typically rent items such as tables, chairs, flatware, linens, centerpieces, stages, tents, canopies, and other items for public and private parties and events.

Areas with a higher population within the United States tend to have more demand for event rental companies. In addition, per capita income can prove a strong driver since richer cities have more disposable income to spend on entertainment purposes.

There is evidence of pent-up demand for parties and event rentals. During the advent of the COVID-19 pandemic, many people were forced to cancel weddings and other large gatherings due to government regulations.

While large events are still widely discouraged, we will likely see a significant increase in the number of large event bookings as more people are vaccinated and the severity of the virus declines.

The nature of the party rental industry involves a lot of capital. Since people or groups are renting significant numbers of items, these items must be purchased, held, and kept usable by an event rental company. This storage can be expensive. Most rental businesses use large warehouses to keep items not currently in use.

Considerations for Companies in the Event Rental Industry

There are significant barriers to entry for companies seeking to venture into the party rental industry. While the industry is poised for significant growth in the next year, purchasing items to provide at events is capital intensive.

In addition, storage fees associated with holding such items can be extensive. If an item is not currently being used, it must be stored. When this happens, an item is only generating expenses and not earning revenue.

In areas with significant populations where parties are regularly thrown, there are typically several different party rental companies available to choose from. Some of these companies have generated a significant following and are regularly used to host events.

It is important to consider the current market share of each event rental company and the likelihood that a new company will be successful before entering a market.

The Impact COVID has Had on Parties

Thousands of industries have been impacted by the coronavirus pandemic, and the party rental industry was not exempt. In fact, it was one of the hardest-hit industries around the country as large gatherings were prevented entirely for months.

This prevention led many party rental businesses to incur significant expenses for storing items that could not be used. In some cases, businesses were forced to close entirely.

As we enter the third year of the pandemic, we have witnessed several variants that have led to increased hospitalizations and illnesses across the country. Currently, the Omicron variant has placed a significant strain on hospitals and health care offices.

As a result, it has led many events to be canceled or rescheduled for a future date. Current CDC guidance strongly advises events to be planned outdoors if possible.

COVID has placed a significant strain on event planners, who must comply with local, state, and federal guidelines when they’re planning an event for large numbers of people. They must stay abreast of changes to health regulations.

These planners must also spend money to ensure the safety of their attendees through the use of equipment and supplies designed to protect against the virus. Common supplies might include improved ventilation systems, hand sanitizer, and temperature monitoring equipment.

The strain on event planners can also be felt by those in the party rental industry, as they must accommodate the needs of the planners. This need can lead to providing specialized equipment designed to promote social distancing protocols. Such equipment must often be purchased by party rental companies

What Party and Event Rentals Were Like Before COVID

Before COVID, the party rental industry operated in a predictable and cyclical nature. The peak time for rentals occurred during the late spring and early summertime months, which is the main wedding season.

There was typically a steep drop in rentals from September through November, until rentals picked up again for the holiday period.

During 2020, party rentals dropped by 85% in the period from March through June. In July, they increased, but only to half of their regular number of sales. Since vaccinations were introduced in 2021, revenue in the party rental industry has increased.

In July 2021, rentals were almost at the average rental percentages for 2019. They also formed the distinct pattern typically seen in earlier years, where rentals peaked in the spring and early months and tapered off in the fall. We are likely to see this trend extend into 2022 as people continue to get vaccinated and undergo booster shots.

Conclusion

The party rental industry is poised for significant growth in 2022 as the country continues its vaccination efforts and the most serious effects of the coronavirus are mitigated.

Weddings and other large events that were postponed will likely be rescheduled during the year, yielding a potentially immense boost to the event rental industry.

Quipli provides detailed software that can assist companies in the party rental industry with managing all of their operations. Software features include keeping track of your inventory and handling your income. If you’d like to learn more about Quipli’s software, Schedule a Demo Today!


GET STARTED WITH PARTY & EVENT RENTAL SOFTWARE

How to Create a Business Plan for Your Party and Events Rental Business

When it comes to starting a new business endeavor, you need to make sure that you have a firm foundation to build upon. An event rental business plan is an essential document that you can refer back to as the company grows or shifts over time.

However, it is also a key piece of the puzzle if you are attempting to get a small business loan from the bank. You need to prove that your party and events rental business can turn a profit so that the lender can rest easy about their investment in you. With a party rental business plan in hand, you can make a great first impression.

Let’s look at the different sections your business plan should include:

Industry Overview

The foundation of your business plan begins with the industry overview. This overview doesn’t have to be a long section of your plan, but it should be enough to give lenders an idea of why your particular business could be profitable.

In this section, you will list specific statistics about the industry as a whole, revenue expectations, and growth percentages for your particular area.

Executive Summary

In your party tent rental business plan, you will want to have a small section for an executive summary. This key component of the business plan details why you want to start this business, a short biography about why you are the best person to run the company, and a brief description of the services you plan to provide.

Keep in mind that this is meant to be just a summary and does not need to be too lengthy. You may have the best success writing this section last. Once you have a firm idea of what else is included in the business plan, summarizing it should be simple.

Service List

If you want to make a great impression with your business plan, you need to have a clear idea of what services your company will provide. Most party and event rental companies offer tents and other items that are easily rented by customers. However, you may want to consider renting out additional items such as:

  • Tablecloths, napkins, and other linens
  • Centerpieces
  • Tables and chairs
  • Audio or visual equipment
  • Lighting

In a tent rental business model, you might have an extensive list of equipment that you need to purchase to get your company off the ground. Make sure to thoroughly list all of the rental services you intend to offer to potential customers in this section of your business plan.

This list also gives the lender some idea of how much initial capital you will need to get the company off the ground.

Mission Statement and Vision

While the other parts of your event rental business plan are likely to be focused on the services and bottom line, you also need a clear idea of where your business is headed. Relaying your vision and mission statement clearly is essential. This section is the area where you will set long-term goals for the company.

Keep in mind that you are here to run a business, so this section can focus on the growth you hope to see in the market and how you can become a leader in the event and party rental industries.

Structure and Roles

Who is going to help you run your business? Even if you are the sole employee, you need to be very clear on what roles you will play within the company. You might be the CEO but also be in charge of the day-to-day operations. However, if your organization isn’t limited to just you, then you will need to define the roles within your company.

SWOT Analysis

The chances are that you have heard of the SWOT analysis before, even if you haven’t done one for your event rental business plan. It stands for strengths, weaknesses, opportunities, and threats. The primary goal of this section of the party rental business plan is to demonstrate how your company will fare in the marketplace.

Where will your business shine, and where will you face more struggles? It is a good idea to be as specific as possible about the strengths of your business. However, you may want to be a little vague about the potential weaknesses of the company. For example, you might cite more competition as the major weakness for your company.

Marketing Strategies

How will your business get in front of more people? There should be a dedicated section in your tent rental business plan about your marketing strategies.

In this section, you can include print materials or advertisements in local publications. You might also include the costs of creating a website, investing in search engine optimization, and paid social media advertisements.

Under this section, you should also identify who you are marketing to. Does your event rental business cater to party-planning professionals, wedding planners, or a unique section of the local population? Narrowing down who you are marketing to helps you to spend your advertising budget wisely.

Sales Forecast

When it comes to securing a loan for your tent rental business model, the lender wants to know how you plan to make money. If you haven’t yet opened the doors to your business, predicting this can be a bit of a challenge. You may have to base your sales forecast numbers on the industry averages for your local area.

Of course, your business will hopefully grow over the first years of operation. As a result, most business owners will want to include separate sections for their first, second, and even third year in business.

This segmented approach allows you to account for the initial investment in equipment such as tents and tables so that you can demonstrate how much more profit you will make in subsequent years of operation.

Pricing Strategy

Whether you have to purchase all new equipment or already own some of the materials, it is crucial to outline how your business will make money. Compare how much you will rent out your party supplies with how much of an investment you must make in them.

This section is also the place to sort out the details regarding additional fees you might charge and how deposits for your rentals will be handled.

Business Expenses

No business plan would be complete without a closer look at how much money you will spend on your expenses. This assessment can include the initial startup costs of purchasing tents, tables, and chairs. It also includes any month-to-month expenses such as storage rentals or operational costs such as rental management software.

Once you know what you expect to spend on your business, it can be easier to justify a business loan to the bank and prove that your events rental business will start to turn a profit quickly. Take your time filling out this section making sure that everything you need is included.

Software for Success in Your Rental Business with Quipli

A business plan for your party and events rental business is essential, but you will also need something to help you manage on a day-to-day basis. Quipli provides software that makes it easier than ever before to manage your inventory online, accept customer payments, and track your equipment rentals.

Learn more about the best features Quipli has to offer your rental business by scheduling a demo of our software today!


GET STARTED WITH PARTY AND EVENTS RENTAL BUSINESS SOFTWARE

How to Start Your Own Bounce House and Inflatables Rental Business

Is there anything more fun for a child’s party than a bounce house or inflatable? These activities are sure to keep little ones occupied for hours, but no one wants to purchase their own inflatable. Instead, they turn to businesses that rent out these major pieces of equipment.

The bounce house rental business model is relatively easy to follow through on. For more details on what you can expect from this business idea, this guide will give you everything you need to get started.

How Does a Bounce House and Inflatable Rental Business Work?

Starting a bounce house and inflatable rental business is rather simple. As the business owner, you invest in the equipment that then gets rented out by customers. The equipment gets rented out again and again, until your initial investment is paid off.

From then on, every cent that you make from renting the equipment is profit for your new business.

What Is a Bounce House and Inflatables Business Model?

An inflatable rental business plan is crucial if you want to succeed in this industry. Learning how to start a bounce house rental business requires plenty of research.

First, you must ensure that you are purchasing quality inflatables or bounce houses. The cost of the inflatables is your largest business expense, though the additional equipment necessary can add up as well.

Your business will make money each time you rent one of your inflatables out to a customer. Once you have recouped the cost of the initial investment, the money you make goes toward the maintenance of your equipment or becomes pure profit.

How much does a bounce house rental business make? Depending on the number of inflatables you have for your business, you could earn $40,000 per year or more.

What are the Costs of Running a Bounce House and Inflatable Business?

The first thing you must consider is the cost when learning how to start a bounce house business. The most expensive part of getting your business off the ground is the investment in inflatables. Decide what types of inflatables you want to rent out:

  • Moonwalks or bounce house castles
  • Wet/dry inflatables
  • Activity courses

Depending on the commercial-grade inflatable you purchase, you could spend anywhere from $1,000 to $8,000 on your bounce house. Smaller and more traditional moonwalks are the least expensive, with obstacle courses being the most expensive.

If you are following a great bounce house rental business model, then you may want to invest in about three to five different types of inflatables. Many people purchase a smaller moonwalk and a larger one to give customers options. Wet/dry inflatables are great for summer parties where your customers want to cool off.

You may also need rental software that allows you to collect payments, manage your inventory, and track your equipment rentals.

What are the Common Types of Bounce Houses Businesses Rent?

When figuring out how to run a bounce house rental business, you need to consider what types of inflatables you want to rent out. Many business owners start with the common moonwalk or bounce house castles that are popular at children’s parties. The common sizes for these are 8’ x 8’ or 15’ x 15’, depending on the size of the party.

However, you can also rent out other types of inflatables that may be popular with older children or during specific times of the year.

For example, many summer parties can make great use of wet and dry inflatables. These often feature a water slide that leads into a more traditional bounce house. While you may not see a huge return on investment in this type of bounce house during the colder seasons, they are a hot commodity for summer parties.

Another option to consider when thinking about bounce house rental business ideas is an activity center or obstacle course. Kids love the challenge of bouncing along and having to perform to get further along in the inflatable. While these are the most expensive types of bounce houses to purchase, they can also yield the biggest returns.

What Other Equipment Do You Need for Your Rentals?

Most people who are thinking about starting a bounce house rental business startup consider only the cost of the inflatables. However, there is other equipment that you will need to keep the business in proper working order.

The first thing to consider is transportation. Customers do not often pick up these extremely heavy inflatables on their own. They will expect your company to deliver them, which means you need a vehicle that can accommodate their size. Consider investing in a large SUV or a truck.

To inflate your bounce houses, you will also need a blower. Many inflatables come with this piece of equipment, so make sure to check the fine print. If it doesn’t, you can purchase your own for around $300.

Cleaning and sanitizing your equipment is an important part of the process as well. Invest in a quality chemical sprayer that can quickly cover the inflatable with disinfectant. These sprayers are not expensive, but you’ll need one to run a safe and healthy bounce house business.

A generator may also be a worthwhile investment. While most inflatables can be plugged into a three-prong outlet, some customers may not have one of these readily available. A generator can be part of the equipment rental for those who do not have access to an outdoor electrical outlet. They generally cost between $400 and $500.

Who are Common Customers for Inflatable Bounce House Rentals?

Are bounce house rentals a profitable business, and who are the main customers? Understanding the market is essential before you make the initial investment in the equipment needed to get started.

Most of the time, your common customers will be parents of young children or party planners. In your bounce house rental business plan, you will want to target this demographic.

How Can I Grow My Bounce House and Inflatable Business and Reach More Customers?

If you want to learn how to grow a bounce house rental business, then you need to be current on all of the latest advertising trends.

Organic growth is possible through SEO — search engine optimization. To use this strategy, you will incorporate keywords into your business landing pages and social media streams to boost your rankings on search engines such as Google.

Of course, you can also opt for paid search advertisements or social media advertisements. Think about where most of your customers are and tailor advertising to their needs.

Other bounce house rental business ideas include creating partnerships with local event and party-based business companies. When they require a bounce house to complete an event, you will be top of mind for the rental.

No matter what type of growth you intend to pursue, keep a close eye on bounce house rental business KPIs to make sure you are getting a good return on investment.

How Do You Manage Reservations and Inventory?

An equipment rental business is a great way to make a lucrative income for minimal work. If you plan to start this type of business, you do need to have a system in place to manage your rentals and make the process a bit easier.

The best way to manage reservations and inventory is through rental software like Quipli. We can help you with important tasks such as:

  • Accepting customer orders
  • Receiving payments online
  • Managing inventory
  • Tracking equipment

Contact Quipli today to book a demo and see how our software can transform your bounce house rental business!


GET STARTED WITH QUIPLI’S BOUNCE HOUSE RENTAL SOFTWARE

How to Start a Party Rental Business

If you have an entrepreneurial spirit, you’ve likely dreamed of starting your own business for years. Now that you’ve decided to create a party rental business start-up, it’s time to learn the ropes.

The party rental industry can be stressful and very labor-intensive, especially when you are first starting as a small event rental business start-up. However, it can be very rewarding as well. Seeing parties and events go off without a hitch, thanks to your rentals, will not only fill you with pride but will help get your name around, too.

Starting a party rental business can be a very lucrative endeavor since the operating costs are relatively low, it’s not super risky or speculative, and there is a pretty steady demand year-round. But to be successful, you have to know how to do things right. Keep reading to learn exactly how to start an event rental business.

How Does a Party & Event Rental Business Work?

Party and event rental businesses work just like every other rental business. People who are hosting a party or an event are going to need supplies and equipment, and it is usually cheaper to rent than to buy. That’s where you come in.

Party and event rental businesses either specialize in one niche, like tables and chairs or have a large inventory of everything from tablecloths to bounce houses that they rent out to clients.

Typically rental businesses coordinate with clients to figure out what they need and when they need it and then give them a personalized quote based on that information. Party and event rental businesses will usually include delivery, assembly or set up, pick up, break down, and equipment cleaning in their rental costs.

What Is a Party & Event Rental Company’s Business Model?

The business model that party event rental companies use is pretty basic and straightforward. Understanding the event rental business model will help you figure out the answer to the question “how much does an event rental business make?”

The business owner buys the inventory, rents it out on an hourly or daily basis at a fraction of the original cost, and after a handful of rentals, the equipment has paid for itself.

As an example to get an idea of party rental profitability, if you buy a children’s bounce house for $3,000 and then charge $300 per day for customers to rent it out, after just ten rentals, you have broken even on your initial investment. After that, you’re making almost pure profit.

This party rental business model benefits both customers and businesses because it grants clients access to party equipment at a much lower price point than buying would allow while making a profit for the rental company.

Using this business model also solves the biggest money-wasting problem both parties otherwise face, which is having equipment and not using it.

What Are the Costs of Running a Party & Event Rental Business?

Although starting a party rental business may sound like a good idea, in theory, the costs could add up to be more than you can afford. That’s why it’s important to have a detailed event rental business plan that lays out all of your starting and ongoing costs so that you have a budget and an idea of what to expect.  Check out some of these rental business ideas to find industries that interest you.

Start-Up Costs

Start-up costs include everything that you will need to start your business, not just the cost of the party equipment. Start-up costs include things like:

  • Rental inventory
  • Delivery trucks
  • A business license
  • Insurance
  • Cleaning supplies
  • Signage
  • Marketing

Realistically, you could start a very small party rental company with $10,000 to $30,000 if you already have some of the start-up requirements, like a truck for deliveries.

You can also keep startup costs down by choosing to specialize in one or two types of equipment, like bounce houses or tables and chairs, and then growing your inventory over time as your business grows.

However, if money is not a problem for your party rental business plan and you’re looking to set up a comprehensive party rental company with a warehouse storage facility, you can expect to drop somewhere between $150,000 and $300,000 just getting your business off the ground.

The exact dollar amount will fluctuate depending on what kind of equipment and supplies you settle on and the quantity of each.

Ongoing Costs

After the business is started, you still have to consider how to run a party rental business. Ongoing costs are all of the other recurring costs incurred after starting your business, including:

  • Employee salaries
  • Equipment repairs and replacements
  • Gas and maintenance for your truck
  • Storage costs
  • Website domain fees 
  • Marketing

As you can see, the costs of running a party rental business can be substantial, but the payoff is worth it if you persevere and make the right moves.

What Types of Events Can I Rent Equipment For?

Birthday parties are just the tip of the iceberg when it comes to event rentals. Party and event rental companies also provide important services for events like:

  • Weddings
  • Corporate events
  • Graduation parties
  • Fundraisers
  • Concerts
  • Block parties
  • Gender reveal parties
  • Retirement parties

Basically, anytime there’s a gathering of people, it could be made better with party rentals. That’s why event rental profitability is so high.

How Can I Grow My Party & Event Rental Business?

You might have noticed that marketing was listed under both start-up and ongoing costs.

Active marketing is always required for party rental businesses. You can’t rely on returning customers to generate revenue because major events only happen every so often. So you must be actively looking for new clients at all times, and sometimes you have to get creative.

Increase Your Online Presence

Having active social media accounts, SEO-optimized landing pages, and paid search ads are all good ways to increase your online presence and have your company pop up in search engines.

Get Creative with Advertising

A funny slogan or catchy jingle can make your business stick out and make your brand more memorable. This approach makes people more likely to feel fondly towards your business right off the bat and to remember your business when they need party rentals.

Increase Inventory

The easiest and most obvious way to grow your business is to grow your inventory. Party rental companies can help provide all of the little details that go into hosting a great event, including:

  • Tent rentals
  • Plates and cutlery
  • Lighting
  • Party games
  • Decor
  • Centerpieces
  • Microphones and speakers

You are only limited by your imagination when it comes to curating the perfect party rental inventory.

The Importance of Reservation and Inventory Management

The cool thing about starting a party and event rental business is that it can be a great full-time business venture or simply a part-time side hustle; it just depends on how much time you have to invest.

No matter how big or small your rental company is, organization at every level should be a top priority. Keeping track of your inventory and clients’ reservations is vital to success.

As a rental company, the last thing you want to do is double book equipment or forget about a drop-off. Not only does this cause you to lose money, but it can hurt your reputation in the area as well. You must have a system that allows you to know at a glance what inventory is available on what days, and Quipli can help with that.

Quipli is a rental software that has proven to be a powerful tool for small businesses. It can help you with everything from booking rentals to keeping track of reservations and inventory. Check out Quipli Rental Software today to learn more about what it can do for your party and event rental business.


Start a Party & Event Rental Business with Quipli’s Rental Software

Start Your Own Canoe, Kayak, and Raft Rental Business

Canoe, kayak, raft, and other water sports rentals are always a popular industry. Canoe rental business start-ups can range widely in how much they cost to get started and run, so it’s a possibility for many different people. 

If you’re in an appropriate area with water access, here’s how to start a canoe rental business.

How Does a Canoe Rental Business Work?

There are a few different ways that a canoe rental business can work. A big part of how to open a canoe rental store is location. Basically, you would expect most canoe rental businesses to be located right on the water. In fact, many of their customers would only discover the store upon visiting the lake, river, or beach in the first place.

While not all such rental businesses are right on the water, that’s typically the best way to do it. Otherwise, there need to be transportation considerations taken into account. Some camping rental businesses will offer kayaks as well, which are relatively easy to transport with the right equipment.

People will generally approach the rental business to rent a canoe, kayak, or raft for a day or several hours. They’ll also need life vests, paddles, and helmets in the case of whitewater rafting or kayaking. The business will have certain rates for the rentals, and that’s how it will make its money.

What Is a Kayak Rental Company’s Business Model?

One of the most significant differences between kayak rentals and other rental businesses is that they are generally seasonal in nature. Even in areas where renting canoes or kayaks throughout the fall and winter is viable, they will almost always see a downturn in business over that time.

This seasonality means that businesses need to focus on the peak summer season. Determining how to start a pontoon canoe rental business needs to take this into account. The limited operating season will affect every aspect of the business and could alter the viability of the business idea.

The water sports rental company will derive revenues from rentals, including the kayaks, canoes, and rafts themselves, along with accessories. Depending on the individual nature of the business, there might be additional services like guides in the case of whitewater rapids or other river trips.

In addition to the rentals themselves, any rental locations based on rivers will often provide pickup service at a location downstream. Going downriver is much easier than going upriver, and any casual kayakers or canoers will likely jump at the opportunity to skip the arduous journey to return their canoes.

What Are the Costs of Running a Canoe Rental Business?

A big part of figuring out the answer to “are canoe rentals a profitable business or not?” is looking into the costs involved.

Of course, you’re going to have the purchase and replacement costs for your canoes, kayaks, and rafts. As far as other types of recreational rentals go, these have a low overhead. You’ll also need paddles, life jackets, and possibly helmets.

There’s also insurance to consider. You need to protect your business from claims occurring from your operations.
Giving someone a canoe and sending them downriver opens up a lot of potential risks. Having your customers sign waivers absolving your business of any responsibility for injuries isn’t enough to protect it. You need insurance, and that’s going to be a recurring cost.

Then there are also the costs involved in running the business itself.  Check out Quipli’s equipment rental cost calculator to help you determine what your cost and rates should be. You’ll either need to own or rent a site to do business from. Ideally, this will be right on the water, which could be expensive real estate. You’ll also need to pay utilities, employee wages, and other costs as they come up.

What Types of Kayak Rentals Should I Provide?

Rafts, kayaks, and canoes are all rental business ideas that can work for a variety of different locations. Understanding your location and the customers you’re likely to draw in is a big part of determining what type of rentals to offer and how to grow a canoe rental business.

Should you plan on offering whitewater rafting rentals, you’ll need to be somewhere where there are whitewater rapids. If you’re on a lake, that simply won’t do. Instead, you’ll have to focus on kayak and canoe rentals. Kayaks are particularly popular in both river and coastal waters.

You might consider other water sports rental ideas as well. Tubes, paddle boats, boogie boards, and more are all viable options depending on the local conditions where your business is going to be set.

How Can I Grow My Raft Rental Business?

Setting up your canoe rental business is one thing, but how to run a canoe rental business is another. You need to make sure that you’re drumming up enough business to keep the lights on. Luckily, you’re entering an industry where customers don’t take much convincing.

Partnerships with hotels, restaurants, and other tourist sites are going to be a major factor here. Having brochures in lobbies where visiting families are looking for fun activities will really help your canoe rental business model.

Of course, you’re going to want to have an established web presence to pick up anyone searching for rentals in your area. That means having a quality website that’s been search engine optimized, along with keeping up a good presence on social media.

What Are Some KPIs I Can Use to Understand How Well My Canoe Rental Business Performs?

Your KPIs are your key performance indicators, the metrics from your business that best represent how it’s doing. This analysis involves more than just monitoring total profits while wondering, “how much does a canoe rental business make?” It requires taking a much closer look at the health of the business using various metrics.

Your return on investment for canoes, rafts, and kayaks is one such metric. You shouldn’t just be looking at the overall return on investment, but the returns on different types of watercraft. This approach can let you know where your focus for the business should lie.

The stock to rental ratio is also important, and your aim should be to keep it low. That would mean that all of your stock is being rented out, rather than having too much and only leaving it lying around.

You should also look at your debt to asset ratio. As your business continues to grow, you should be reducing debt and growing assets. When you divide your debts by the cost of your current assets, it shouldn’t be any more than 30%.

How Should I Handle Reservation and Inventory Management?

Maintaining your canoe rental profitability is going to depend on how well you can run your business. You’re going to need the right tools to do so. A big part of your daily operations will be inventory management and reservations, so you want to make sure you’re doing those right.

This consideration is the kind of thing you want to have a dedicated system for. You should have your inventory and reservations systems integrated to ensure that your customers have access to your stock, increasing your sales and growing your business.

Quipli’s Inventory Management Solution

With Quipli, you can rest easy knowing that you’ve made the right choice for your inventory management and reservations. Your canoe rental business plan will be best served by our simple inventory management and professional online presentation. Just reach out to our team today for a demo of what Quipli has to offer.


GET STARTED WITH CANOE, KAYAK, AND RAFT RENTAL SOFTWARE

How You Can Start Your Own Boat Rental Business

Starting a boat rental business start-up is a great way to take advantage of the growing experience economy. Nowadays, consumers are more interested in having picturesque, Instagram-worthy experiences over material possessions.

With the right knowledge, location, and marketing, boat rental companies can be highly lucrative and profitable in the long run. But, as with every business, there are many challenges and complexities you need to be aware of.

This in-depth guide aims to provide the groundwork needed if you’re interested in how to open a boat rental store.

How Does a Boat Rental Business Work?

Starting a boat rental business is much more than just purchasing a boat and putting up a few flyers. Boat rental business ideas involve managing a full-fledged operation and dealing with the challenges every business faces.

As such, boat rental companies generate revenue by renting out boats to customers, usually on an hourly basis.

What Is a Boat Rental Company’s Business Model?

A boat rental company’s business model involves several steps.

1. Finding the Right Market

Tapping into a prime market is the best way to start a strong boat rental company. You’ll need to find an area with a high population density or a large volume of tourists. This way, you’ll have enough potential customers to maintain a sustainable business.

It’s also important to research the water and weather conditions at your potential dock. In some parts of the world, wind conditions and currents can greatly impact the sailing experience.

2. Making the Most of Your Location

When it comes to choosing your location, there will likely be several competitors, so it’s important to understand what they’re offering and how your company can stand out. You’ll need to deliver a service that has more value than the already established competitors. Additionally, great locations can generate a lot of walk-in sales.

3. Obtaining Permits

The exact permits you need to acquire depend on the location you choose to start your boat rental company. As such, you’ll need a landlord contract in order to apply for a water permit. Water permits allow you to dock and operate your boats at the venue.

4. Acquiring Boats

Whether you want to rent out an existing boat or purchase a completely new one, you’ll need a fleet of boats consumers are interested in renting.

5. Hiring and Maintaining Employees

Unless you are interested in managing the entire boat rental company yourself, you’ll need to hire employees who have boating experience. These employees will be in charge of day-to-day operations, so they must prioritize friendliness and customer service.

6. Setting Up Your Dock and Facilities

Depending on the mooring solution at your venue, you may need to install your own dock. As such, some sort of docking is necessary to offer your customers a safe and reliable way of entering the boat.

7. Creating a Website and Online Booking System

Boat rental companies also need to create a website that allows customers to make reservations quickly. This process usually involves using comprehensive booking management software.

What are the Costs of Running a Boat Rental Business?

Since boats are expensive and require significant investment, starting a boat rental company is more costly than you’d think.

You’ll need to spend money maintaining the boat, refueling it, and installing equipment. Boats also vary widely in price, with sailboats starting at $10,000 and fishing boats costing up to $100,000. Furthermore, you’ll need to acquire the proper certifications and insurance, which can cost several thousands of dollars.

On top of that, boat rental companies will need to:

  • Hire employees
  • Lease space on a dock
  • Pay monthly utility bills
  • Create a website
  • Run marketing campaigns

The size of your company and how many boats you have will determine how much it costs to run a boat rental business.

If you’re wondering, “are boat rentals a profitable business?” or “how much does a boat rental business make?” it depends. Each rental boat business has unique overhead costs and charges unique rates. Profitability will be determined by how many customers the rental business can average every week.

What Types of Boat Rentals Should I Provide?

The location you choose to start your boat rental business plan will also determine what type of boat rentals to rent. Boats come in a variety of different forms and are used for various activities.

Given this variety, you can learn how to start a pontoon boat rental business or a business that rents other boats such as:

  • Fishing boats
  • Houseboats
  • Dinghy boats
  • Sailboats
  • Deck boats
  • Motor yacht boats
  • Cabin cruiser boats

Analyzing the competitors at your location is the best way to understand what boats to purchase for your boat rental company. It’s also recommended that you rent out boats that you have knowledge or expertise about. You can provide helpful advice to your customers and conduct efficient maintenance work.

How Can I Grow My Boat Rental Business?

Learning how to grow a boat rental business model consists of providing an unrivaled experience and taking advantage of modern marketing solutions. Nowadays, there are many ways to reach out to and connect with potential customers.

These marketing campaigns include:

  • Paid ads: Instagram, Facebook, Twitter, Google Adwords, etc.
  • SEO: Search engine optimization for organic traffic
  • Conference partners
  • Partnerships with local stakeholders
  • Partnerships with hotels, resorts, and travel agencies
  • PR and media posts
  • Tourism platforms: Airbnb, Tripadvisor, etc.
  • Email campaigns
  • Affiliate and referral programs

By combining multiple marketing approaches, you can build knowledge about your business.

What KPIs Can I Use to Understand How Well My Boat Rental Business Performs?

When your boat rental company is up and running, there are a few KPIs, or key performance indicators, that allow you to monitor your company’s performance.

These include:

1. Time Utilization

Time utilization is calculated by days rented divided by days available. This will help you determine which boats are the most popular and which boats you may need to consider replacing.

It’s incredibly inefficient to keep a boat with low utilization rates as it won’t generate enough profit.

2. Rental Rate

The rental rate KPI is calculated by dividing the rental revenue by the number of contracts. This calculation allows you to track the average change in rental rates from period to period.

3. Washout Percentage

Washout percentage is a performance metric that is calculated by dividing total income by total expenses. This calculation allows you to measure the total boat rental profitability over the lifetime of a boat.

4. Maintenance-to-Income Ratio

The maintenance-to-income ratio calculates how much income a boat is generating compared to how much it costs to maintain it.

The Importance of Reservation and Inventory Management

In the online age we live in today, convenient online booking systems are a necessity for rental companies. These reservation systems allow customers to quickly book a reservation online without needing to call the boat rental company.

Furthermore, online systems reduce the need to track every reservation by hand and risk the loss of important documents. Moreover, boat rental companies need to have an inventory management system that keeps track of all of their boats.

This way, the boat rental company will know when the boat is being used, how many hours the boat has been rented, and when upcoming bookings are.

Start a Boat Rental Business Today

If you’re passionate about boating and want to start an entrepreneurial venture, a boat rental company is a great way to get started. In fact, Quipli makes learning how to run a boat rental business easy and convenient. We offer comprehensive reservation and inventory management software that allows you to run a sustainable business.

Contact Quipli Rental Software today to learn how we can take your rentals online.


Build Your Business With QUIPLI’S Boat Rental Software

10 Marketing Tips to Grow Your Dumpster Business

When you own a dumpster rental business, it’s important to keep bringing in new customers, while also keeping old customers engaged. The best way to do this is to create successful marketing campaigns.

However, this can be challenging when you’re on a budget and don’t have much. marketing experience. Here are ten marketing tips that can help you create smart marketing strategies for your dumpster rental company.

1. Research Your Customers

Before you can market to your customers, you have to know who they are and what they need. In many cases, your dumpster rental business will target several different categories of customers. For example, you might decide to market your roll-off rental and waste removal services to:

  • Homeowners doing basement cleanouts and DIY projects
  • Home improvement contractors
  • Warehouses and manufacturing plants
  • Small office buildings and schools

Once you know who you are going to market to, you can learn as much about each customer group as possible. This can include how they will use your products, the features that will be most appealing to them, and where they will learn about your company.

2. Create a Quality Website

More rental businesses and individuals than ever are using the internet to do business. Because of this, most marketing tips are going to focus on that. This popularity is why it’s important to have a professional-looking website that is fully owned by your business. Because, no matter how you advertise your business, people are going to eventually come to your website.

Here are the characteristics of a quality website:

You Own the Domain Name

Don’t be tempted by cheap website builders that host your website for free, as long as you include their name in your URL and allow them to post ads on your site. Invest the money in a professional site that is linked to your business name.

It Works on all Devices

Your website should work just as well on a mobile device as it does on a PC or laptop.

It Has Information and Features People Need

  • Your website should include:
  • Contact information
  • Forms to place an order or request information
  • Product and pricing info
  • Service area map
  • Company history and business information
  • Links to your social media

3. Build a Social Media Presence

When customers have questions or concerns about your dumpster rental services, they may not pick up the phone. Instead, many will come to your Facebook page or other social media sites to learn about your business and contact you.

If you want to earn their business, you’re going to need to create a social media presence and keep it active. That means posting regularly, keeping your profiles up to date, and engaging with customers when they have questions or comments. 

4. Make Great Content

Content marketing may be the most powerful tool you have to reach your audience. This form of marketing includes:

  • Blogging
  • Social media posts
  • Creating and sharing videos and images on YouTube and Instagram

Content marketing can be informational. For example, you could share a video with dumpster safety tips. It can be promotional (e.g., a Facebook post about an upcoming special you intend to run). It can even be entertaining, such as sharing a humorous cartoon you think your audience will enjoy.

The point of content marketing is to build customer relationships while also educating people about your company. Best of all, it’s free.

5. Engage in Brand Building

Brand building makes your company memorable and recognizable. Part of branding is tangible. It includes your logo, company tagline, the colors you use in your advertising, the magnetic signs on your trucks, etc.

The other part is intangible. That’s the personality that comes through in your ads and marketing. If your brand was represented as a person, what would they be like? For branding to work, it has to appeal to your audience, it must be authentic, and it must be consistent.

6. Invest in Paid Advertising Where it Makes Sense

It can be worth paying for advertising if you get a good return on your investment. Here are some quick advertising tips to consider:

  • Advertise where your audience is (radio, tv, Facebook, Google)
  • Don’t waste time on ads where you aren’t going to reach your target audience
  • Your ads should align with your branding
  • Track paid ad campaigns to see what makes the most money

Finally, include a clear call to action in your ads so that your customers know exactly what you want them to do.

7. Reach out to Other Businesses

Dumpster rental is an industry in which referrals and recommendations can truly drive your business. Some of the best dumpster rental marketing you can do will be reaching out to businesses that can recommend you to their customers and other businesses.

Focus on real estate agents, home improvement contractors, house flippers, and home builders. Each of these can be a source of new referrals.

8. Do Market Research

Market research lets you know which of your marketing efforts are paying off and which ones aren’t. You don’t need to hire an expensive agency for this. The information you need is right at your fingertips:

  • Ask customers how they learned about your business.
  • Pay attention to customer records to see which groups you are targeting most successfully.
  • Use Google Analytics and social media tools to see how many leads you are getting from different platforms.

Once you have the data, you can determine how you want to proceed with marketing in the future.

9. Earn Great Reviews

Marketing isn’t just what you have to say about yourself. It’s what others have to say as well. Encourage your satisfied customers to leave positive reviews on your website, Google, and other consumer sites. Then, share these on your social media pages for an added boost.

10. Optimize for SEO

SEO is search engine optimization. It’s the practice of creating content and designing your website so that your pages appear in search engine results when people look for relevant keywords.

Identify the words and phrases people will use when they search for your services. Then, incorporate them naturally into your website content, ads, and social media posts.

Bolster Your Marketing with a Great eCommerce Platform

Your marketing will be most effective when it leads your customers to an eCommerce site that makes it easy to do business with you. Count on Quipli to provide you with the infrastructure and support you need for your equipment rental site.


AUTOMATE YOUR DUMPSTER RENTAL BUSINESS WITH QUIPLI’S SOFTWARE