Jump to content


Photo

Anxious To Start!!


  • Please log in to reply
34 replies to this topic

#1 bbspartyrentals

bbspartyrentals

    Advanced Member

  • Members
  • PipPipPipPip
  • 267 posts
  • Gender:Male
  • Location:Rhome, Texas

Posted 29 December 2012 - 11:14 PM

Hello everyone. Thanks to MWF I have become very educated in the industry. We have our first rental a couple of weeks from now. My wife and I have sat down and set price points but am nervous about being to low or undercutting everyone else close to us. We have a 15x15 bouncy castle that we are planning to rent for $85, combos that we are planning to rent for $175, wet/dry slide that we are planning to rent for $250 dry and $300 wet, a Velcro wall, 30' foot obstacle course, and the Airborne adventure for $300. We plan to have an attendant with the Airborne adventure and Velcro wall. Are these reasonable prices or should we have higher prices? We have researched other companies close to us and we are either $20 under or over. Will the Airborne Adventure rent for more? To my understanding we are one of the first in North Texas to offer this. We plan to only charge a delivery fee if a customer is further than 1 hour away. As we are in a rural area, Rhome, TX to be exact and it is already nearly 30 minutes for us to get to the metroplex. We are also planning to donate one free rental of our choosing to churches, schools, and non-profits per weekend on a first come first serve basis. And two free during the week. in exchange for recognition in their newsletter, bulletin, etc. The theory is that we can generate more leads and sales by customers knowing what good works we do. Just looking for reassurance. Are we nuts? Thanks for y'alls help.

#2 Big Bounce Parties

Big Bounce Parties

    Silicone Parts are Made for Toys!

  • Members
  • PipPipPipPipPipPipPip
  • 2197 posts
  • Gender:Male
  • Location:Sniffers Row

Posted 30 December 2012 - 12:25 AM

I'd skip the donations.....especially to churches and schools.....these are your customers. Do you think a pew manufacture donates pews to churches? Do you think a text book company donates books to a school? If you want to give away inflatables I'd get a real job and rent them for such "causes".

If your pricing is right in-line with your competitors then I would stick with that...of course you have to make sure you're making money at that. Remember that you may be dedicating 4-hours of driving to a customer if you're offering free delivery up to a whole hour from your place.....then there's set-up/take-down, bull-XXXXXXXXXX with your customers, etc.....so it could be more like 5-hours per rental.....now if you have 2 guys in your vehicle at $10/hr.($12/hr.) after taxes, worker's comp., etc. you're now in for up to $120 in labor, then there's a half-tank of gas...another $40. So you have $15 after renting your combo......that should be enough to cover your credit card processing fees, website hosting/design, extension cords, someone to take the order in the first place, your advertising, liability insurance, vehicle insurance, uniforms, etc. But wait, there's more! Now it's rained on your inflatable and someone has to come in and set it up in your own yard to dry it out. Neighbor's are pissed, your association is upset, and now it's time to go find a commercial space at a higher rent rate.

Yes, you're nuts!
  • BABT, B N, RogerH and 4 others like this

#3 SirBounce-A-Lot

SirBounce-A-Lot

    Should have stayed in school

  • Members
  • PipPipPipPipPipPip
  • 1009 posts
  • Gender:Male
  • Location:NE, PA

Posted 30 December 2012 - 03:20 AM

I'd skip the donations.....especially to churches and schools.....these are your customers. Do you think a pew manufacture donates pews to churches? Do you think a text book company donates books to a school? If you want to give away inflatables I'd get a real job and rent them for such "causes".

If your pricing is right in-line with your competitors then I would stick with that...of course you have to make sure you're making money at that. Remember that you may be dedicating 4-hours of driving to a customer if you're offering free delivery up to a whole hour from your place.....then there's set-up/take-down, bull-XXXXXXXXXX with your customers, etc.....so it could be more like 5-hours per rental.....now if you have 2 guys in your vehicle at $10/hr.($12/hr.) after taxes, worker's comp., etc. you're now in for up to $120 in labor, then there's a half-tank of gas...another $40. So you have $15 after renting your combo......that should be enough to cover your credit card processing fees, website hosting/design, extension cords, someone to take the order in the first place, your advertising, liability insurance, vehicle insurance, uniforms, etc. But wait, there's more! Now it's rained on your inflatable and someone has to come in and set it up in your own yard to dry it out. Neighbor's are pissed, your association is upset, and now it's time to go find a commercial space at a higher rent rate.

Yes, you're nuts!

So what you are trying to say is that you are a glass half full type of guy? :pardon:
  • MWC likes this

#4 Castle Party Rentals

Castle Party Rentals

    I like pokemon.

  • Members
  • PipPipPipPipPipPipPip
  • 4287 posts
  • Gender:Male
  • Location:Obamaville, IL

Posted 30 December 2012 - 04:06 AM

Free delivery within an hour radius... ouch ouch ouch.
  • Sabrinas Party Rentals, MWC, B N and 2 others like this

#5 CapitolOnlineAuctions

CapitolOnlineAuctions

    Forum Junkie

  • Members
  • PipPipPipPipPipPip
  • 1820 posts
  • Gender:Male
  • Location:Washington, DC

Posted 30 December 2012 - 06:13 AM

You may want to review your business plan. Gas, labor, wear and tear in your vehicle can easily be $1-$1.50 per mile. If your 1 hour free delivery is 50 miles, that could be 200 miles on your vehicle if you are making just 1 delivery. That is $200-$300 before any other expenses.

#6 PROBIRD

PROBIRD

    Forum Junkie

  • Members
  • PipPipPipPipPipPip
  • 1239 posts
  • Gender:Male
  • Location:winter haven , florida

Posted 30 December 2012 - 06:46 AM

An hour?
200 miles ÷ 13 mpg = 15 gallons at 2.50

85.00 - 37.50 = not me

#7 allstarinflatables

allstarinflatables

    Dish Washer

  • Members
  • PipPipPipPipPipPipPip
  • 2604 posts
  • Gender:Male
  • Location:Florida

Posted 30 December 2012 - 07:38 AM

I hate to burst your bubble, but donations will give you nothing except being that company that donates things. Yes, your phone will ring more, but it will be from more non-profits seeking you to donate to there organization. You don't want to be that guy!

Revisit your business plan, you don't have to be cheaper to get the business. Offer something unique to get the business.
  • Kangaroo Bouncers likes this

#8 PROBIRD

PROBIRD

    Forum Junkie

  • Members
  • PipPipPipPipPipPip
  • 1239 posts
  • Gender:Male
  • Location:winter haven , florida

Posted 30 December 2012 - 08:02 AM

Price a little higher than your competition and you will be amazed how many calls you get. People will pay more for quality, clean and unique items, not the same old boring unit that everyone has around you.

It works trust me.
  • B N likes this

#9 abc123

abc123

    Has No Life

  • Members
  • PipPipPipPipPipPipPip
  • 2401 posts
  • Gender:Male
  • Location:Beaumont, Texas

Posted 30 December 2012 - 08:02 AM

you need to re think your plan.

$85 and free delivery for a moonwalk? We are in S.E. Texas and we are $125 plus $20 delivery just in our small town and have no problem.
Your vehicle, gas and labor are worth something. You will make no money like that. Yes you will get calls because you are cheapest but why even do it if you are not going to make any money. If I were a competitor, I would book you to do my job and make money off of all your equipment and labor.

Forget the donations and especially 1 each weekend!!! Save the donations to established customers. Then give it to them when they do not even ask for it.

Last but not least. I hope you are insured. It is required in our state and you will really need it with the airborn adventure!!

good luck.

#10 funlight

funlight

    Forum Junkie

  • Members
  • PipPipPipPipPipPip
  • 1062 posts
  • Gender:Male
  • Location:Ottawa/Calgary

Posted 30 December 2012 - 09:05 AM

If the Airborne Adventure is your market differentiation then hype it to the high heavens and don't feel guilty about charging a premium. If you undercharge and give too much away, you will not last and will soon regret your choices.

Also re-read the posts in the forum about starting up a business. I do not recall anyone encouraging big donations to generate sales and awareness. If you have dead time you are better off doing a P2P at a high traffic event.

#11 PROBIRD

PROBIRD

    Forum Junkie

  • Members
  • PipPipPipPipPipPip
  • 1239 posts
  • Gender:Male
  • Location:winter haven , florida

Posted 30 December 2012 - 09:50 AM

By a bunch of waterslides and start in the heat, much more money and if you make it thru the summer you'll know if it's for you.
  • Zman118, Sabrinas Party Rentals, Jose' and 1 other like this

#12 weekend warrior

weekend warrior

    Has No Life

  • Members
  • PipPipPipPipPipPipPip
  • 2929 posts
  • Gender:Male
  • Location:Springfield,il

Posted 30 December 2012 - 02:26 PM

If I have dead time I kick back under a tree with a cold one and enjoy life. I'm enjoying this biz but it is a lot of hard work so get the most bang for the buck. Be different and charge more.

#13 BABT

BABT

    Has No Life

  • Members
  • PipPipPipPipPipPipPip
  • 2164 posts
  • Gender:Female
  • Location:Atlanta, GA

Posted 30 December 2012 - 03:56 PM

You have been given lots of great advice here by seasoned pros. Here's the main thing you need to consider: why are you getting into this business? Do you want to just make some extra money on the weekends while working your (and your wife's) ass off during the hot-aXX summer, or are you trying to build something great? It matters because what you do now is the foundation for what you want to be. If your goal is to build a great inflatable company that will be around for years to come and can be passed down to your children, then you have to start out like you are already that company. Charge enough to be able to afford a warehouse, a trailer, trucks, staff and, most of all, MARKETING!!!!

And forget the freebies - it will bring you bums and all of their friends for as long as you are in business. They will never, ever want to pay full price. Offer a good, clean product, friendly, knowledgeable customer service and fair policies and the customers will come, stay and refer their friends.

Bonne chance!
  • Jose', bouncegeorgia and funlight like this

#14 ACP

ACP

    Has No Life

  • Members
  • PipPipPipPipPipPipPip
  • 4643 posts
  • Gender:Male
  • Location:Byron Center, MI

Posted 30 December 2012 - 04:30 PM

I think everyone covered most of what I would say. Listen to these people-they know what the heck their doing.

Well...some of them. ;)

#15 Lee&Rob

Lee&Rob

    Advanced Member

  • Members
  • PipPipPipPip
  • 356 posts
  • Gender:Male
  • Location:NE FLORIDA

Posted 30 December 2012 - 06:58 PM

If you start with a 99 cent burger what do you do for a promo ? buy the 2nd for a penny ? oh yeah thats already been done ... Look at groupon stock and 90% percent of the suckers that did that deal . The only thing that low prices get you is no profits , good luck hope you can get a good business plan during this down time.

#16 Big Bounce Parties

Big Bounce Parties

    Silicone Parts are Made for Toys!

  • Members
  • PipPipPipPipPipPipPip
  • 2197 posts
  • Gender:Male
  • Location:Sniffers Row

Posted 30 December 2012 - 07:23 PM

....or even worse....you lose money, lose your weekends, your wife, your kids, your dog, your house, etc.

#17 bbspartyrentals

bbspartyrentals

    Advanced Member

  • Members
  • PipPipPipPip
  • 267 posts
  • Gender:Male
  • Location:Rhome, Texas

Posted 30 December 2012 - 07:38 PM

I appreciate the advise and we are now looking to charge more on all our units. We plan to go big or go home as we will be starting off with 7-10 units this year and anticipate to grow to get another 10 more by the next year. This has been something that I have been researching and considering for nearly over a year now and now we are in it to win it as we intend for this to be our fulltime income.We were able to pay cash for everything so no worries about actually owning equipment. In fact we bought someone's business.We are insured and are scheduled to get our units inspected and registered after the first of the year. I am trying to find that reasonable price to set. The price structures that I'm really unsure of are the Velcro wall and the airborne adventure. abc123 I saw one of your posts that you have an airborne adventure. How much do you charge to rent it out. Is it one flat fee that includes the cost of an attendant or a flat fee plus an hourly attendant fee? I know that since I am the only one up here that has one then I get to set the price. What is a fair price for something like this? Again thank for the help and advise. That's why I am turning to MWF to ask for some insight while we are developing our business plan

#18 AHB

AHB

    Forum Nut

  • Members
  • PipPipPipPipPipPipPip
  • 6900 posts
  • Gender:Male
  • Location:Winston-Salem NC

Posted 30 December 2012 - 07:49 PM

Hello everyone. Thanks to MWF I have become very educated in the industry. We have our first rental a couple of weeks from now. My wife and I have sat down and set price points but am nervous about being to low or undercutting everyone else close to us. We have a 15x15 bouncy castle that we are planning to rent for $85, combos that we are planning to rent for $175, wet/dry slide that we are planning to rent for $250 dry and $300 wet, a Velcro wall, 30' foot obstacle course, and the Airborne adventure for $300. We plan to have an attendant with the Airborne adventure and Velcro wall. Are these reasonable prices or should we have higher prices? We have researched other companies close to us and we are either $20 under or over. Will the Airborne Adventure rent for more? To my understanding we are one of the first in North Texas to offer this. We plan to only charge a delivery fee if a customer is further than 1 hour away. As we are in a rural area, Rhome, TX to be exact and it is already nearly 30 minutes for us to get to the metroplex. We are also planning to donate one free rental of our choosing to churches, schools, and non-profits per weekend on a first come first serve basis. And two free during the week. in exchange for recognition in their newsletter, bulletin, etc. The theory is that we can generate more leads and sales by customers knowing what good works we do. Just looking for reassurance. Are we nuts? Thanks for y'alls help.


Your delivery plan will eventually run you out of
Business. You will not make money, giving free delivery that far away.

Only do donations for things you feel passionate about. Like the others said, giving free just leads to those people telling everyone else they know that they got it free. Every non profit within 100 miles will know of you, but will want it free.

Make sure u have insurance, required, and someone wil turn you in if you don't.

Great website with good SEO, Good pricing, nice clean units, and killer customer device will get u there.

#19 allstarinflatables

allstarinflatables

    Dish Washer

  • Members
  • PipPipPipPipPipPipPip
  • 2604 posts
  • Gender:Male
  • Location:Florida

Posted 30 December 2012 - 07:50 PM

If you are starting with 10 units, I highly recommend at least 5 wet/dry slides!

#20 Spoiled Rotten

Spoiled Rotten

    I am suing nate for patent infringement!

  • Moderators
  • PipPipPipPipPipPip
  • 1930 posts
  • Gender:Male
  • Location:Lubbock, TX

Posted 30 December 2012 - 08:55 PM

I agree with allstar, in Texas you need wet units, water slides, water combos, etc. Best advice I could give is to stay unique to your competition, in the customers eyes a bouncer is a bouncer so they will almost always go for the cheapest available. Get some cools units that really say WOW, otherwise you will blend in with the competitve landscape. Good luck, get your inspections and insurance, another expense many on the forum do not have to consider
  • funlight likes this




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users