When setting up an event equipment rental business, it is important to establish a solid rental contract that can be used to protect your equipment and your customers. A good rental contract will include restrictions on use, as well as equipment return policies.

You should include a section that establishes penalties for equipment that is damaged during the rental period, as well as a statement that indicates your company’s responsibility for ensuring the maintenance of all rental equipment. In addition, make sure to review party equipment rental contract examples when designing your own.

What Should Be Included in a Party Rental Contract?

An event equipment rental contract should include several specific items to establish an understanding between the company and the client. The agreement and its terms should be clear to both parties. Common items included in a party equipment rental contract example include:

• Personal details of the owner and the renter
• Details of the event, such as dates and location
• Dates the equipment is to be rented for
• Any restrictions on the use of the equipment
• How the equipment is to be returned to the rental company

The event equipment rental contract spells out the agreement between the company and its customer, so both parties should have a full understanding of its terms.

Party Rental Agreement

The introduction of a party rental agreement should define who the contract is between. It should set out the introduction to the contract, establishing that the agreement is for the rental of party equipment.

Every introduction should also set out clear definitions of terms used within the agreement. Common terms include ‘Agreement,’ ‘Company,’ ‘Renter’, ‘Rental Items,’ and ‘Event.’ However, there may be other terms that should be included as well.

Parties

The parties section includes all of the identifying details of the renter and the company. Common details consist of names, addresses, phone numbers, email addresses, and any other relevant information.

This section essentially describes who is taking responsibility for the contract, as well as their full details.

Rental Information

The Rental Information section defines the details of the event that the equipment is being used for. In a party equipment rental contract example, this may include the date of the event, type of party, and the number of people expected. It should also indicate the location of the party.

Items Included in Rental

The list of items that are to be rented by the customer should be included in the list of party rental equipment. Common party items that are rented by event equipment rental companies include:

• Tents
• Tables
• Chairs
• Linen
• Chair covers
• Dishes, cutlery, and glassware
• Sound system
• Lighting
• Heating and cooling
• Staging and flooring
• Generators and power

While these are common types of equipment rented during a party, every event is different. Some parties may require all of these, while others may include only a few.

Rental Rates and Fees

The rental rates and fees section of the event equipment agreement should establish a clear definition of the rental costs of each item for the party. 

Each equipment item should be clearly defined, as well as the quantity of each. A price should be indicated for each component. The price may be charged by the day or for a certain number of hours. 

The agreement should also include a section for damaged, missing, or late equipment return fees. By including these amounts, the company will have the right to collect them should any of the equipment be damaged, lost, or otherwise abused.

Cancellation

A cancellation policy should be included in the equipment rental agreement. This part of the contract should indicate the fees that will be charged to the customer should they decide to cancel their rental. 

It should also indicate any extenuating circumstances that will result in the waiver of such fees, such as new COVID-19 restrictions or a natural disaster. 

Common policies include 50% of the contract price if an event equipment rental contract is canceled within a certain period, such as a week. 100% of the entire contract may be requested for event equipment rentals that are canceled in a shorter time frame.

Payment

Typically, equipment rental contracts will require payment of rental fees in cash, by check, or by using a credit or debit card. 

Some companies will need repayment in full prior to the event, while others will require an initial deposit and payment after the event. The company should decide upon the payment arrangements that it is most comfortable with.

In addition to covering how payments will be made, a list of fees associated with the rental should be included. Common fees included in party equipment rental contracts include:

• Cleaning of any items rented
• Assembly of event equipment
• Disassembly of event equipment
• Fees for missing items that are unreturned
• Damage fees

It’s important to make sure that all fees are properly indicated within the contract. There should be no room for misunderstandings on fees and payments.

In Witness Whereof

The final part of the agreement will include the signatures of the owner as well as the renters. The date of the signing should also be indicated.

Wrapping Up

There are many sample event rental contracts available that can be located online. You can also work with a legal advisor to develop a contract that covers all of the bases and ensures that both you and your customer are protected. 

At a minimum, your contract should include information related to the equipment that is being rented, as well as the pricing details. 

It should also discuss related fees, the dates that the equipment is being rented for, and the parties to the agreement. To ensure that the contract is valid, signatures on behalf of the renter and the rental company should be obtained.

If you own a party rental company, check out Quipli’s party rental software solutions. We offer a FREE demo for interested equipment rental company owners. Our software includes such features as equipment reservation management, inventory management, and a robust reporting module to help you make business decisions.

Need a rental contract agreement for your Party & Event Rental Business? Contact us today to purchase Quipli’s professional Contract Agreement to use for your rental business.

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A study by the American Rental Association revealed that the equipment and event rental industry is expected to grow by 9.2% in 2022, 6.8% in 2023, and 4.8% in 2024. 

For companies that have suffered significant losses as a result of the COVID-19 pandemic, this is very welcome news. However, company owners must remember that ensuring the profitability of their business is paramount, and before they rent out equipment, they need to include calculating profit as a part of their business plan.

The following is a list of the ten best rental business ideas:

Wedding Event Rentals

Weddings were largely shut down during the COVID-19 pandemic, as large events were restricted due to increased regulation and an effort to contain the disease. 

As a result, we can expect pent-up demand for the wedding event rental business. A wedding event rental business is relatively easy to start, as it doesn’t require too much initial financial outlay. Essentially, things you can rent out will include tables, chairs, catering equipment, and decor. 

Party Equipment Rentals

People are always able and willing to plan parties. Similar to weddings, many large parties were postponed due to COVID-19 regulations that limited large social gatherings. 

As a result, you can expect an increase in parties as restrictions are relaxed. Common equipment rentals in the party industry include bounce houses for children, karaoke machines, tables, chairs, and catering equipment. This field is also one of the best rental business ideas since the initial investment is generally small.

Dumpster Rentals

Dumpster rentals are commonly needed, especially in areas where there are significant remodeling or construction efforts for homes or businesses. 

They are also popular for large events or at times when a significant amount of trash is expected. There are two general types of dumpster rentals — stationary and roll-away. Roll-away dumpsters are typically the most profitable since they may easily be latched onto a heavy-duty truck after use.

Car Rental Business

The car rental business can be very profitable, especially in areas close to airports and hotels or located in big cities. If you don’t want to open your own business, you can start a franchise with a corporate rental car company such as Avis Budget Group or Hertz. 

In addition to the earnings you’ll make from renting vehicles, you can also include add-ons such as GPS and car seat rentals that will bring in more money. However, car rental companies will need to perform regular maintenance on their vehicles, so it’s important to factor that into your rental prices.

Electric Scooter Rentals

Electric scooters have become one of the most popular rentals in recent years as people need a quick way to navigate around metropolitan areas without a car. There are a number of electronic scooter companies that offer franchise opportunities, or you can start your own. 

The low cost of initial investment for electric scooter rentals makes this one of the best things to rent. Make sure to add some helmets and safety gear to protect your customers and increase your revenues.

Canoe and Kayak Rentals

In areas close to rivers and streams where water activities such as canoeing and kayaking are popular, rentals of these items can be very popular. Many vacationers love water activities that involve some exercise, so locating a canoe and kayak rental company close to scenic areas with hotels nearby can be quite successful. 

In addition, the low costs of canoes and kayaks make this a relatively easy industry to break into. Things you can rent outside of canoes and kayaks in this type of business include fishing equipment and safety items such as lifejackets.

E-Bike Rental

Similar to electric scooters, e-bikes have become more popular, especially in metropolitan areas. These bikes offer the same features that a regular bicycle does, but they also include a motor and battery designed to assist riders if they get tired when on the road. 

The e-bike rental industry is also easy to get into, as the bikes themselves are fairly inexpensive. You can also invest in add-on items, such as helmets and other protective wear that can be rented to your customers.

Tool Rentals

Tool rentals can be particularly lucrative. Many people enjoy making home improvements to their property, but the cost of tools to do so can be excessive. Thus, they turn to tool rentals to minimize the expense of their home improvements. 

Investing in a tool rental business can be quite profitable, considering how many people have sought to improve their properties over the past few years. Tools are some of the best things to rent, as they have longevity and can be replaced relatively easily.

Bounce House and Waterslide Rentals

Bounce houses and waterslide rentals are popular for parties and events with children. These types of rentals are generally inexpensive and offer significant returns if the business is managed well. 

Most bounce houses and waterslide rentals do particularly well in the spring and summer seasons when the weather is warmer. In the off-seasons, you may want to have other equipment available to rent to ensure steady revenue from your equipment rental business.

AV and Camera Gear Rentals

AV and camera rentals are a great rental industry to get into. People love to rent these types of equipment to capture important moments in their lives, such as weddings and birthday parties. They are also popular with YouTube influencers and producers seeking to create content for social media. 

The outlay for a good camera can be above $1,000, making it very expensive for those who expect to use it only a handful of times. However, renting the equipment is much cheaper for customers — and one of the most profitable rentals for those who choose to offer the equipment as part of a rental business strategy.

Getting Started With Your Equipment Rental Business

If you seek to start an equipment rental business, there has never been a better time to do so. Equipment rentals are expected to grow over the next few years, and investing in a business with low barriers to entry can pay off well. 

When you’re considering the type of rental company best suited for you, it’s important to look at the profitability as well as the initial capital outlay. Quipli’s equipment rental software offers a great solution for those wanting to succeed in the equipment rental business. Contact us for a free demo today. 

Starting a equipment rental business from scratch? Learn more about the process with our guide on how to rent out equipment and learn about the top kpi for a rental business.

START A SUCCESSFUL EQUIPMENT RENTAL BUSINESS USING QUIPLI’S SOFTWARE

One of the main pieces of advice for any rental business idea and for any event rental business is to think about how you are going to scale your business. Every business starts out small, but with careful planning and some well-defined goals, you can start to take things to the next level.

Find the Best Way to Promote Your Event Rental Business

Businesses rely on various types of marketing and promotion to get the word out there to potential customers. This isn’t something that you should approach without an effective plan. You need to identify who your core customers are and find a way to reach out to them effectively.

Some businesses might rely on flyers or word of mouth, which can work in some situations. However, the main focus for how to grow an event rental business today is on social media. Your business should have accounts on major platforms like Facebook and Instagram, and you can even consider using their paid promotion programs.

Build an Event Rental Business Email List

You might think that using an email list is how to grow a party rental business the old-fashioned way, but email lists are some of the most powerful tools that businesses have. They provide a direct line to people who have been customers in the past or are interested in your business, giving you high-quality leads.

You should always try to get customers to sign up for your email list. You can frame it as signing up for a newsletter or future discounts and offers. In either case, you’re accomplishing the same task. Your email list is a promotion resource that puts you in complete control rather than relying on the whims of social media algorithms.

Maximize Your Profits by Buying More Inventory

So let’s say you’ve done a great job promoting your business, and now you have more customers. Do you have the inventory to meet that demand? An important part of how to expand your event rental business is to continuously reinvest in your business, building up a larger inventory to serve more customers.

You should have a concrete plan for inventory acquisition. Identify which of your rentals are being rented the most. If you’re at low or no available inventory for some items, focus on that area rather than something you always have available.

Focus on Leveraging Yourself When Hiring Event Rental Help

As your business continues to grow, you’re going to need more event rental help to keep up with the increased work. Being able to delegate and let someone else handle certain tasks is one area where many business owners struggle. They hold on too tightly to the adage that if you want something done right, you need to do it yourself.

When finding help, you’re looking for people that let you leverage your unique skills. Don’t try to find someone exactly like you, but someone who complements you. That way, you can focus on what you do best and how to improve your party rental business.

Maintain Great Relationships with Local Event Planners and Venues

Having an extended network of event planners and venues will make the job of figuring out how to market your party rental business a lot easier. By working with these individuals, you’re expanding your opportunities and putting yourself at the forefront of their minds when they need anything that you can provide.

These kinds of referrals can make a huge difference in how quickly you can grow your business. They can have a snowball effect; the word can rapidly spread about your event rentals, providing you with a steady stream of new customers.

Create a Customer Loyalty Program for Your Event Rental Business

Finding new customers is one of the most challenging aspects of growing any business. In most cases, it’s better to devote time and resources to driving repeat customers. You could consider implementing a customer loyalty program to incentivize customers to keep coming back for your event rentals.

By keeping track of your customers, you can provide discounts or other benefits as they continue to return. This is a great opportunity to get them on your email list, too!

Grow Your Event Rental Business Using Technology

Having the right tools for the job will make growing your business that much easier. Quipli has the tools and resources you need to do just that. With seamless rental inventory software, online equipment rental checkout software, straightforward payment processing, and messaging, every interaction with your customers is that much easier. Reach out to Quipli today to get a quote on our solution for your business.

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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.

MANAGE YOUR BOUNCE HOUSE RENTAL BUSINESS WITH QUIPLI TODAY

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.

MANAGE YOUR BUSINESS WITH QUIPLI’S PARTY RENTAL SOFTWARE TODAY

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.

START YOUR RENTAL BUSINESS WITH QUIPLI’S RENTAL BUSINESS SOFTWARE

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