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 get a quote right away.