Starting a new business venture takes a lot of dedication and determination. Although opening a jet ski rental business seems straightforward, there are key details you should understand before you jump in.

From marketing and insurance, to choosing a location and purchasing your fleet of jet skis, launching a rental business is more challenging than it looks. Here’s everything you need to know about how to open a jet ski rental store.

How Does a Jet Ski Rental Business Work?

A jet ski rental business generates income by renting out jet skis to beach-goers during the summertime. Jet ski rental businesses typically charge their customers hourly.

You may be wondering, how much does a jet ski rental business make? Here is an example of a pricing structure that determines jet ski rental profitability:

• 1 Hour: $100
• 2 Hours: $180
• 4 Hours: $300
• Full-Day: $500
• Full Weekend: $800
• Full Week: $1,300

As you can see, you can charge your customers depending on how long they want to rent the jet ski. Location also makes a difference. Jet ski rental businesses at a busy resort area or beach can charge more than those located at a quiet lake or marina.

With a jet ski rental business plan, choosing an optimal location is half the battle. The other half is actually setting up a sustainable business and running marketing campaigns.

If you are wondering, “is a jet ski rental business profitable?” or “are jet ski rentals a profitable business?” the answer is yes.

What Is a Jet Ski Rental Company’s Business Model?

When setting up a jet ski rental business, you’ll need to complete the same steps as any other business.

These steps include:

1. Writing a business plan and generating jet ski business ideas
2. Choosing and renting a location
3. Registering your business
4. Creating a website
5. Renting an office facility
6. Purchasing jet skis and safety equipment
7. Hiring employees
8. Creating a maintenance schedule
9. Marketing your jet ski rental business name

Water sports are considered to be a luxurious activity and are increasing in demand over the years. Launching a rental jet ski business may be an excellent way to generate hands-off income once the business is up and running.

What Are the Costs of Running a Jet Ski Rental Business?

Since jet ski rental companies vary significantly in size, the cost of running the business depends on a few factors. The determining factors include:

• How many employees do you have
• Office rent
• Coast rent
• Utility bills
• Maintenance and repair
• Fuel costs
• Weekly advertising campaigns

It’s important to take all of these costs into consideration.

How Much Does it Cost to Start a Small Jet Ski Rental Business?

The most expensive aspect of starting a jet ski rental business model is purchasing the jet skis. You’ll first need to decide how many jet skis you want to have available. Remember that you’ll also need an additional jet ski for your crew members to use when customers travel outside of the designated boundaries.

In general, jet skis range anywhere from $4,000 to $30,000. The exact price depends on what model it is and if it’s new or used. Purchasing used jet skis from a reputable dealer is a great way to cut the initial costs of opening a jet ski rental business.

Other costs include:

• Registering a business entity: ~$750
• Legal expenses for obtaining permits and licenses: ~$1,500
• Marketing campaign expenses: ~$10,000
• Insurance policy coverages (workers’ compensation, general liability, property-casualty): ~$30,000
• Accounting, CRM, and payroll software: ~$3,000
• Leasing a facility for the company: ~$20,000
• Operational costs (employee salaries, utility bills, etc.): ~$15,000
• Website creation: ~$1,000

Keep in mind; these estimates allow you to see the full picture of launching a jet ski rental business.

How Can My Jet Ski Rental Business Reach Customers?

The key to a successful jet ski rental company is choosing a location where water sports are in demand. For this reason, it’s extremely important to conduct thorough research as you’re choosing a location.

Many open bodies of water don’t allow jet skies because of shallow waters and protected marine life. Furthermore, you’ll need to acquire the proper licenses and insurance when starting a jet ski rental business.

These certifications vary from state to state, so it’s vital to conduct proper due diligence for your specific location.

In terms of how to grow a jet ski rental business, you’ll need to use a combination of offline and online marketing strategies. Offline marketing campaigns include:

• Displaying flyers in hotels and resorts
• Offering commission when tour guides bring customers
• Partnering with travel agents to add jet skis to the travel package
• Promoting your jet ski rental company through local newspapers, radio, TV stations, and travel magazines

Online marketing campaigns include:

• Running social media ads
• Using social media to promote your offers organically
• Using customer testimonials on your website
• Sending out email campaigns

By combining online and offline strategies, you can get the word out about your business.

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

Tracking your KPIs or key performance indicators is the best way to understand if your business is running efficiently.

1. Washout Percentage

Washout percentage is a jet ski business KPI that determines how much revenue each jet ski generates for your business. Take the total rental income for each jet ski and subtract the original purchasing price, carrying costs, and maintenance expenses over its lifetime.

The washout percentage will help you find the real-world profitability of each jet ski. It also helps you plan for the future by showing you what sale price to look for on a similar jet ski.

2. Income-to-Maintenance Ratio

It’s important to avoid keeping jet skis that require constant maintenance. Faulty jet skis make you lose out on profit when they’re being repaired. Customers will also be upset when their jet ski stops working as they’re using it.

So monitor your income-to-maintenance ratio to see how much each jet ski earns compared to how much it costs to maintain it.

3. Schedule Adherence

Schedule adherence is how well customers adhere to the reservations they book. For example, if only 60% of customers show up for their reservations, you may want to deploy a more extensive scheduling process with deposits.

The Importance of Reservation and Inventory Management

In the modern age of the internet, it’s important to offer comprehensive and convenient reservation services for your customers. Potential customers should be able to easily book a reservation on your website without having to call your customer service line.

Furthermore, it’s essential to avoid inventory issues where a customer books a reservation during a particular time when your jet skies are already completely booked.

An effective reservation management system is designed to automatically manage reservations and bookings. It automates a lot of tasks you’d have to complete by hand and prevents costly mistakes.

Start a Jet Ski Rental Business Today

Starting a jet ski rental business is a great way to pursue a full-time venture that generates enough profit to live a comfortable life. However, you most likely need help if you haven’t had any entrepreneurial experience before.

Luckily for you, Quipli offers advanced software that makes it easy for you to accept customer orders and receive online payments. Furthermore, we provide unmatched control over rental inventories and easy scheduling.

Contact Quipli Rental Software today to get started on a business venture that has the potential to change your life.

START YOUR BUSINESS WITH QUIPLI’S JET SKI RENTAL BUSINESS SOFTWARE

Dumpster rental may not be the first thing that comes to mind when most people think about becoming entrepreneurs. However, when you consider that this is a business that involves a practical, necessary product, it becomes easier to see why people choose this niche.

Like other businesses, to be profitable, a dumpster rental company must generate more revenue than expenses, maintain good credit standing, and have some excess to invest back into the company. A dumpster rental business might be right for you if you can manage these things.

How Profitable is a Dumpster Rental Business?

Total profitability depends on many factors that can change from region to region. The costs to buy your equipment, costs for your locations, and how much you can rent your equipment will change depending upon what city you are in.

Here are some example scenarios, however, to provide an idea of how profitable a dumpster rental business can be:

1. If a dumpster costs $1500
2. And Maintenance, Insurance, and Operating Costs cost you $750 a year.
3. And you want to have a profit of 500%  – or $11250
4. And you want to make that profit in 1 year,
5. And you want to have a competitive price point with the local competition that charges it $400 per day
6. You will need to rent your dumpster out 35 days a year at $386/day.

To hit $1 million in profit with a dumpster rental business, you would need to rent a dumpster 2900 times in a year at $390 days.

Let’s say you will need to buy 50 Dumpsters to keep up with demand.  2900 days sounds a lot, and it is. But think of it this way: how many days a year should all 50 of your dumpsters be rented out while still staying in line with your competition? 58 Days at $384/day for a rental. If you purchase 50 dumpsters for $1500 each — then estimate maintenance costs, insurance costs, and operating costs to be a total of $750 for each dumpster — your total costs will be $112,500. Thus, to reach 1 million in profit will require you to rent out 2900 dumpsters in a year, or all of your dumpsters out 58 days of the year.  Learn how to calculate your dumpster rental cost with Quipli’s equipment rental cost calculator!

How to Improve Profitability?

What happens if your roll-off dumpster business profit isn’t enough to sustain your business? In that case, you’ll have to take steps to increase your profit. Here are a few things you can do to help boost your margins.

Consider a Rate Increase

If you aren’t making enough of a profit, you might consider raising your prices. However, before you do that, it’s best to do some research. Here are some questions to explore:

• How much are my competitors charging to rent the same dumpsters?
• What is my current profitability for each category of dumpster that I offer?
• Is there something I can offer to make a rate increase more palatable to my customers?

Just remember that pricing is a complicated issue. You have to ensure that people feel as though they are getting great value. Additionally, you must balance making a profit with being competitive.

Finally, remember that you don’t have to raise your prices across the board. Instead, you could raise the cost of your most popular dumpster category while keeping other rates the same.

Invest in Marketing and Advertising

Customer acquisition is a key factor in dumpster rental profitability. To get new customers, you have to find them, let them know that your business is interested in working with them, and convince them that they should choose your company for dumpster rental.

To get started with that, you have to identify the best platforms for reaching your potential customers. Your options include:

• Television and radio advertising
• Print ads
• Paid or organic social media advertising
• Billboards
• Content marketing

Lower Inventory Costs

How much does each dumpster cost you? Remember that you must recoup that cost before you make a profit on any dumpster.

However, if you can lower the upfront cost of your dumpster inventory, you will begin to make money sooner. You may be able to do this by purchasing dumpsters and other equipment used.

Form Partnerships with Other Companies

If you can create some steady streams of income, this can transform your business. Think of the businesses in your market that regularly rent dumpsters. Now, imagine that you can enter into exclusive contracts with them to provide roll-off dumpsters at their facilities and work sites.

Reduce Costs

Finally, take a look at your expenses. Examine your insurance costs, maintenance expenses, and other factors to see if there are any opportunities to save money.

A Profitable Equipment Rental Business at Your Fingertips

You can turn a profit with your dumpster rental strategy. All you need are the right strategies and technologies. Quipli can make this easy. Check out Quipli equipment rental software to learn more!

MANAGE YOUR BUSINESs WITH QUIPLI’S DUMPSTER RENTAL SOFTWARE