The inflatable bounce house business is often one of the first ideas that anyone looking into starting a rental business investigates. When most people deal with these kinds of rentals, they just see someone drop off and set up the unit then pick it up, getting their bounce house business income for seemingly little work.

However, you should take a closer look at the potential profit, revenues, and costs before starting a bounce house business.

How Much Profit Can a Bounce House Business Make?

Bounce house rental profitability has many factors that must be considered to get a real answer. You should add up the cost of the equipment, the insurance for a bounce house business, and other associated costs.

Rental rates can vary, but you might expect an average of 1.5 rentals per unit per week. So having four units will bring you six rentals each week. Rental prices will depend on many specifics, but if you take $175 as a benchmark, you would see $1050 a week from your bounce house business income. 

What Does It Cost to Invest in Bounce Houses?

Many factors go into determining your bounce house rental profitability, and the amount you invest is one of them. The cost for each bounce house will vary widely, and you’ll have to weigh this amount carefully against market rates, costs, and other factors.

What Are the Main Bounce House Sizes, Their Costs, and How Much Should You Rent Them for to Be Profitable?

Bounce houses cover a wide range of different attractions, which means that you have plenty of options when starting a bounce house business. The cost to purchase a bounce house will vary depending on the size, type, and condition of each specific bounce house.

The most common types you’ll find on the market today are:

Moon Bounce

This is what many people refer to simply as a bounce house. A moon bounce features a walled-in area with a flat jumping floor. You can get variants with obstacles or with branding from children’s media.

Slide Bounce House

A slide bounce house combines a conventional moon bounce with an exit slide that is accessed through an inflatable ramp or climbing wall.

Water Slide

Inflatable water slides are highly popular and can come as stand-alone items or with additional features.

Inflatable Slide

Some inflatable attractions are stand-alone slides, sometimes featuring racing lanes. Inflatable slides can be notable for their height.

Obstacle Course

Inflatable obstacle courses can feature a variety of obstacles and are suited to many different age ranges.

Toddler Inflatables

Many bounce houses are geared specifically toward toddlers. These are smaller and generally simpler than other options.

More elaborate bounce houses are generally more expensive, along with those that feature water. Size is typically the most significant factor when determining price. Keep reading to learn what some typical sizes of bounce houses can cost.

How Much Does a 10×10 Bounce House Cost?

A basic 10×10 bounce house might cost $1,000, and you could reasonably expect to rent it at around $100 per day. You’ll need ten rentals to break even at that rate, and you could bring in $600 profit each month after that.

How Much Does a 13×13 Bounce House Cost?

The 13×13 bounce house can cost around $1,600 and be rented for $125 per day. You’ll need 13 rentals to break even, and your bounce house business income after that point will be $750 per month.

How Much Does a 15×15 Bounce House Cost?

Your business could expect to pay $2,200 for a 15×15 bounce house. It could be rented for $150 per day, taking 15 rentals to break even. Past that point, you’ll be able to generate $900 in profit per month.

How Much Does a 20×20 Bounce House Cost?

A larger 20×20 bounce house could cost $3,500 and bring in $215 per rental. It would take 16 rentals to break even and provide $1,290 in profit each month after that.

When Should You Rent Out a Bounce House to Be Profitable?

Of course, bounce houses are most popular in the summer. If you’re in a warmer region, the busy season can start early in the spring and extend through the fall. Many bounce houses are suitable for indoor use, particularly in school or community center gyms.

How Can I Manage My Bounce House Rental Business?

Quipli provides an effective rental management software solution for rental businesses of all kinds. You’ll be able to manage your bounce house inventory and take online reservations in a unified system that takes all of the guesswork out of your business. Just contact Quipli today to get started.

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Party rental businesses are one of the best potential business ideas for anyone looking to get started with minimal capital investment. They can be done on the side or taken to the next level as your primary source of income. The amount that these businesses can earn will depend on how far you’re willing to take them.

How Much Can You Make with a Party Rental Service Business?

There are successful party rental businesses out there already, so we know for a fact that there’s a way to make this type of business work. The actual amount you can make will be determined by the type of rentals you provide. You can aim to run a full-service rental party company, or focus on party supply rentals for a small niche of event categories.

The scale of these businesses covers a significant range, and your success will come down to whether or not you’re fully committed. An established mobile party rental service can gross between $250,000 and $900,000 annually. Of course, this is before factoring in taxes, wages, and other expenses.

Are Party Rental Businesses Profitable?

There are plenty of different criteria that can affect whether your party rental service is profitable. Of course, there’s the cost of your investment in the business. The total of your investment will largely be set by the specific type of event rental business you plan on running and could range from $5,000 to $15,000 or more.

There will also be ongoing costs you’ll have to weigh to determine your party rental profitability. These costs include the need for future equipment acquisition, business insurance, facilities rentals, marketing and promotions, and of course, paying yourself and any additional employees as needed.

Party equipment rentals have a variety of potential target markets and can grow to almost any scale. The only way to find a real answer for rental business profitability is to take a closer look at individual niches.

Wedding Party Rentals

When most people set out to search “party equipment rental service near me,” they’ll be trying to find wedding rentals. People love weddings, and most couples are willing to spend a bit extra to make it that much more special.

The average wedding has about $1,000 in equipment rental costs, so your profitability depends on how many weddings you can successfully book. Consider that this figure is the average, and higher-end wedding rentals can involve significantly higher spending.

Birthday Party Rentals

Birthday party rentals cover an incredibly wide range of potential business opportunities. Some of the most popular birthday party rentals are bounce houses and other inflatables. This low-commitment product niche could net well over $1,500 each week with only minimal stock.

Whether you can go after the higher-end market depends on the level of inventory that you carry. You can only rent bounce houses to one customer at a time, so expanding your inventory is the quickest way to expand a great side hustle into a full-time business.

Party Supply Rentals

A party supply rental business provides the essential supplies needed for just about any kind of company. Chairs, tables, and assorted fixings are some of the most commonly rented items. There’s also audio and video equipment, including speakers, projectors, and more.

The pricing model for these kinds of rentals is complex, but in general, these kinds of supply rental companies could start out earning about $1,000 each week with fairly basic stock. Of course, you can always start to specialize and target higher-value niches in the future.

Corporate Party Rental Service

Businesses generally have a bit more flex in their budgeting than individuals, so corporate party rental services can make significant profits upwards of $2,000 per week if they have the right inventory available. This is also an area that thrives on new ideas, so you could see lots of acquisitions factor into your budgeting.

How to Determine Rental Rates for Party Rental Services

Setting the pricing for any rental business is one of the most significant challenges. You’ll have to consider both your own needs as a business and the market rates for comparable rentals.

To calculate what you need to turn a profit, you’ll have to determine how often you rent equipment. In many cases, for party rentals, you’ll be combining individual items into packages. From there, you can see what your pricing will need to be to pay off acquisition costs and support other costs within a reasonable time.

How Can Your Party Rental Service Rent Out Equipment for Profit?

How well you run your business day-to-day will determine how sustainable it will be. Excellent organization is critical for any business, but that’s particularly true in the party rental business. You’ll need an effective platform for managing inventory and reservations if you expect to make it.

Quipli provides just such a platform with the tools you need to succeed. You can contact our team today to learn about our rental website builder and online equipment rental checkout software.

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Rental businesses are thriving across many industries, with new opportunities emerging every day. However, anyone looking into starting a rental business needs to understand the importance of having an effective rental business model in place.

What Is a Rental Model?

A rental business model is different in many ways from other types of businesses. The conventional business model will be based around the sale of either goods or services. A retail store might purchase goods from a supplier and then sell them physically in-store to customers. 

This can also be applied online or in other ways, but the fundamental core of the business model is buying goods and selling them at a higher price.

Services, whether from an electrician, a doctor, a painter, a lawyer, or anything in between, use a different model. Service businesses perform specific tasks, relying on the time of skilled professionals to generate revenue. While there are material costs as well, that’s the basics of service business models.

Rental business models are different. These businesses purchase equipment, from construction equipment to watercraft, depending on their niche, and rent that equipment out to customers. These customers pay a certain price per hour, day, or week, and that’s where the rental business gets its revenue.

The rental business needs to ensure that its business model will generate higher revenues than the cost of purchasing and maintaining equipment. There are other factors like utilities, rent, and so on, but the most important point is whether a purchased piece of equipment will generate more in rental revenue than its cost for purchase and maintenance.

Are There Different Types of Rental Models?

The core of every rental business model is based on generating revenue from rentals, but there is a wide variety of ways that businesses can achieve that. These are just some of the various rental business models that you could choose.

Brick-and-Mortar Rentals

Many rental businesses are based in physical locations and derive most of their revenue from walk-in customers. This has been the conventional rental agreement model for a long time before technology allowed for other possibilities.

These types of businesses have to either own or rent a physical location to serve as their storefront and a place to keep all of their equipment. Since most rental businesses need space to keep inventory anyway, having a physical storefront makes sense.

Bricks-and-Clicks Rentals

This type of rental business model refers to a hybrid online and physical business. This can mean a few different things in practice. Depending on the type of rental equipment, customers could order online and have it shipped. It could also mean that the business uses an online reservation system to facilitate business with its customers.

Given that rental businesses in almost any industry need an online presence to succeed, it only makes sense to add some real functionality and derive value from online resources in your rental agreement model.

Peer-to-Peer Rentals

In many ways, peer-to-peer rental business models are more about developing a platform than renting equipment. These businesses allow individuals to rent items to other individuals, using the business as a kind of marketplace. 

This kind of revenue-sharing rental model can work in many industries but comes with challenges as well.

A revenue-sharing rental model is a big departure from classic rental business models and might not be right for individuals unfamiliar with more complex business practices.

What Is the Best Rental Model for My Business?

There isn’t any clear-cut answer as to which rental business model is best. They all have their own benefits and drawbacks, with many being suited towards renting certain types of equipment. However, there are some key points you can keep in mind when making your decision.

The first is the nature of the specific items you’re renting out. If your equipment is restricted to distribution in the local area, then having a physical presence where customers can pick up and drop off equipment would be sensible.

Rental business owners should make sure not to discount the value that a hybrid model can bring to their business, no matter what industry they’re in. Construction equipment, wedding rentals, vehicle rentals, and more can all be presented to your customers more effectively with rental business management software.

Having your stock accessible online will have more customers finding what they need and reserving a rental with your company. Many consumers out there prefer online booking versus calling a business, so giving them that option makes you that much more likely to make the sale.

How to Price Your Rentals?

Pricing is a critical factor for any rental business model. It can be a challenging task to determine your rental product pricing because there are many factors at play.

The prices that rental businesses can set are dictated by market forces. These are complicated but basically come down to the fact that customers won’t rent from you if they can rent elsewhere cheaper.

This sets an effective maximum for rental prices on any specific piece of equipment. The other factor to consider is the minimum. 

You need to determine what rental price will allow you to not only recoup the purchase cost of the equipment but to turn a profit as well. Your rentals will also have to supply revenue to offset utilities, rent, wages, and more.

If the minimum rate that you determine for pricing certain equipment is higher than the maximum rate dictated by the market, then that specific piece of equipment isn’t viable. Instead, your business will have to find other options that have viable price points to keep your business running.

What Is the Best Rental Business Management Software?

Managing a hybrid rental business model can be a significant challenge. This is particularly true if you’re trying to manually balance online and in-person reservations. Instead, you can streamline the process with rental business management software.

Quipli provides versatile rental business software that makes inventory management and reservations incredibly easy. You can reach out to Quipli today to find out more about what our solution has to offer.

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