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Interesting and helpfull-advice for newbies


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#41 BlasterBouncer.com

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Posted 28 February 2010 - 06:04 PM

Coastal, I agree. You nailed the problem with the 10/30 example. You don't get the $30. It's $30 less the $10 marketing less operating expenses and overhead, etc. For many, it would be a negative number. It also feeds a basic math problem in our industry. Often, the new operator confuses gross sales with profit at worst, and when they do recognize some costs, often fail to account for all of them. The 10/30 example has this math problem built in. Of course I would trade someone $10 for $30 all day long, but you don't do that by spending $10 on marketing to get $30 in business. You do that by spending $10 on marketing to get $30 of PROFITS not SALES. If you were running 30% margins, not an unreasonable number for the industry, you would need to produce $100 in sales to get your $30 of margin for the $10 in marketing cost. That's 10 times the amount spent on marketing, much higher than 3 times the amount spent on marketing. I have similar problems with people who calculate return on investment based on gross sales, saying that a $1500 bouncer can be paid for in 10 rentals at $150. This is wrong and people entering the business need to know this.

My basic problem with the 33% figure is that I think the number is too high. Dawn saying that this is her threshhold for failure is good and makes more sense. My threshhold is lower, but good people can disagree about the details. Of course, if you found something that was 5%, it would be something you would do more. 33% is about as high as I've seen it (if anyone uses something higher, they can post their limit), but I suppose there's a lot of gray area between 0% and 33%.

In Ted's defense, some people will calculate the value of a customer based on the net present value of future profits, and evaluate the profit of a marketing campaign that way. I don't because of the uncertainty of future market conditions, but you can justify higher marketing costs this way.

Ted, your advice in the rest of your post is awesome (trying to be fair here). Dawn's other advice about marketing and not wasting money on marketing by not tracking it is also awesome.

Not everyone is cut out for the big time. Many people can't handle the complexity of basic payroll, let alone the complexity of running a large operation. I personally don't think it's worth being in the business small time, but you'll find people on this forum that disagree with me. There's nothing wrong with running a small rental shop, it just seems like a lot of work for very little return. I got some of the best advice on this forum from a smaller operator (Thanks Kenny!). He had a simple solution to a problem that my warehouse guys absolutely loved. For a forest to be considered healthy, there must be room for trees of all sizes.
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#42 Ted Amberg

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Posted 28 February 2010 - 06:29 PM

Coastal, I agree. You nailed the problem with the 10/30 example. You don't get the $30. It's $30 less the $10 marketing less operating expenses and overhead, etc. For many, it would be a negative number. It also feeds a basic math problem in our industry. Often, the new operator confuses gross sales with profit at worst, and when they do recognize some costs, often fail to account for all of them. The 10/30 example has this math problem built in. Of course I would trade someone $10 for $30 all day long, but you don't do that by spending $10 on marketing to get $30 in business. You do that by spending $10 on marketing to get $30 of PROFITS not SALES. If you were running 30% margins, not an unreasonable number for the industry, you would need to produce $100 in sales to get your $30 of margin for the $10 in marketing cost. That's 10 times the amount spent on marketing, much higher than 3 times the amount spent on marketing. I have similar problems with people who calculate return on investment based on gross sales, saying that a $1500 bouncer can be paid for in 10 rentals at $150. This is wrong and people entering the business need to know this.

My basic problem with the 33% figure is that I think the number is too high. Dawn saying that this is her threshhold for failure is good and makes more sense. My threshhold is lower, but good people can disagree about the details. Of course, if you found something that was 5%, it would be something you would do more. 33% is about as high as I've seen it (if anyone uses something higher, they can post their limit), but I suppose there's a lot of gray area between 0% and 33%.

In Ted's defense, some people will calculate the value of a customer based on the net present value of future profits, and evaluate the profit of a marketing campaign that way. I don't because of the uncertainty of future market conditions, but you can justify higher marketing costs this way.

Ted, your advice in the rest of your post is awesome (trying to be fair here). Dawn's other advice about marketing and not wasting money on marketing by not tracking it is also awesome.

Not everyone is cut out for the big time. Many people can't handle the complexity of basic payroll, let alone the complexity of running a large operation. I personally don't think it's worth being in the business small time, but you'll find people on this forum that disagree with me. There's nothing wrong with running a small rental shop, it just seems like a lot of work for very little return. I got some of the best advice on this forum from a smaller operator (Thanks Kenny!). He had a simple solution to a problem that my warehouse guys absolutely loved. For a forest to be considered healthy, there must be room for trees of all sizes.


That's what's nice about this forum. All size companies. I have actually learned many ideas on here. Just because a company may be small in size does not mean they don't have amazing ideas! And Blaster, I think we should both agree that while we may be bigger companies ourselves, we should always approach things as both the teacher...and the student. Show me anyone who knows everything and has no interest in a "continued education" and I will show you someone destined for failure. Take it to the bank.

#43 partyrentalplace

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Posted 08 November 2011 - 02:25 PM

I thought this might be a interesting topic and be able to help people at the same time. If you would, give one and only one piece of advice to someone starting an inflatable buisness. Short and sweet...and to the point. No repeat answers please. Lets see where this takes us!


As far as marketing goes for a new company.... I would use free internet advertising like craigslist, and try to get on google maps

#44 Jose'

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Posted 08 November 2011 - 03:21 PM

I thought this might be a interesting topic and be able to help people at the same time. If you would, give one and only one piece of advice to someone starting an inflatable buisness. Short and sweet...and to the point. No repeat answers please. Lets see where this takes us!


As far as marketing goes for a new company.... I would use free internet advertising like craigslist, and try to get on google maps




Google Maps is a must. Craigslist-not so much. I do like your signature to gain "OneWay Back Link" from the forum. Good move. I also like how you want to rank well for your chosen keywords by using the "Anchor Text Linking" :rolleyes:


Laser

Edited by Laser, 08 November 2011 - 03:23 PM.


#45 Karscotdotcom

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Posted 12 November 2011 - 06:41 PM

Regarding advertising for newbies

When I first started in the bounce business 1993 I had one bouncer. I purchased it in England while on holiday and had it shipped home to Canada. It arrived three days after I got home.

After getting insurance and all the necessary licensing. I had some flyers made up 3 to an 8.5" X 11" sheet. I then approached a local mall the busiest one, where I asked the manager if I could set up the bouncer on Saturday for four hours on the condition that I would not charge the kids to use it and he would not charge me to be there. He agreed!

I set the bouncer up around 11:00am within two minutes every kid in the area was dragging their parent over to the bouncer. I told them it was free and I made sure every parent left with my flyer. I wrapped up at 3:00pm went for a bite to eat and drove home and unloaded. I then went into my office to check my calls. I had over 20 calls for birthday rentals.

Then on Monday I went to a friends I did not have a computer then as many people didn't, most business was done via phone rather than email. Anyhow I made up tickets that included a space for a child's name, date of birth, and telephone number.

I took these tickets with me to my first birthday rental and I told the lady of the house that when I come back to pick up the bouncer I am going to have a "draw" for a free bouncy castle rental. The condition was that each of her guests (parents) need to fill out all the information on the tickets. Sure enough when I got back I took all the tickets that were filled out and I placed them in a hat gave it a shake and had the birthday boy or girl pull out a ticket.

The conditions of the winning ticket was that the free rental was for two hours only, and must be during the week and must not conflict with any other rentals. There were about 12 children at that first rental which gave me 12 names, telephone number and date of birth. From those 12 tickets I began building a database of names and I listed them by month. This gave me by seasons end a database of about 500 children.

When the next season began I started to call each child's home about five weeks before their birthday. I retained about 80% of them as new bookings for that year and I continued with the "free draw" system until I had over 2000 people in my database. Of course many children have siblings and so it wasn't uncommon to get two or even three bookings from the same household.

I pass this information along to all customers that purchase from me. It was a very cost effective way to get started in my first couple of years.

KDFZ
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#46 JungleJumps

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Posted 14 January 2012 - 06:48 PM

A critical aspect for any business is setting the price of your products and services. For the inflatable rental industry you will need to consider a variety of different pricing options to offer your customers for equipment rental and services. The pricing structure will of course vary depending on the equipment being rented and length of time. You will also want to consider offering package discounts if more than one product is being rented for an event. Many inflatable rental companies also have pricing to reflect both peak and off-peak hours, such as weekend rentals versus during the week, offering a discount during the slower times. This will also help to maximize your equipment.

#47 Mrupp444

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Posted 26 January 2012 - 01:32 AM

This is my third year in the party rental / inflatable business - a LOT of very, very good points. The digital pic we always do. Google being incredibly important - YES it is and of course - a LOT of LONG weekends! :)

We have our customers sign an ADDITIONAL sheet in addition to the standard contract and agreement to idemnify. We explain the rules to them as we go down a unit specific sheet and have them sign it at the bottom so there is no WAY somebody can say we didn't explain very clearly what to do and NOT to do. (I love the line about the $400 charge for silly string - that problem STOPPED once we started doing that!

Have an awesome, profitable, week!
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#48 BounceAboutPartyRentals

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Posted 26 January 2012 - 07:33 AM

I got some of the best advice on this forum from a smaller operator (Thanks Kenny!). He had a simple solution to a problem that my warehouse guys absolutely loved. For a forest to be considered healthy, there must be room for trees of all sizes.


OK Jeremy, I have to know which idea... I need all the credit I can get these days. The wife and kids swear I'm the dullest knife on the table.....or something like that....lol (dang, maybe their right...) ;)

#49 JungleJumps

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Posted 27 January 2012 - 05:02 PM

You will need to consider a variety of different pricing options to offer your customers for equipment rental and services. The pricing structure will of course vary depending on the equipment being rented and length of time. You will also want to consider offering package discounts if more than one product is being rented for an event. Many inflatable rental companies also have pricing to reflect both peak and off-peak hours, such as weekend rentals versus during the week, offering a discount during the slower times. This will also help to maximize your equipment.
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#50 Tcoody

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Posted 11 June 2013 - 07:43 AM

....

SEE ABOVE....

 

 

KARSCOT-DOTCOM

 now this is a good ideas, and I will use this

 

Mrupp444" love the line about the $400 charge for silly string - that problem STOPPED once we started doing that!"

 

 

what sheet do u have this on?

 

thanks



#51 Flo

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Posted 27 August 2013 - 12:12 PM

Don't buy overseas???? I heard it was dangerous like a box of chocolates .... never know what you gonna get.



#52 floatingcastles

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Posted 12 September 2013 - 10:07 AM

An extra added step I use is a "After Setup Checklist" for the customer and myself. After setup is complete I walk around with the customer and have them check everything off the list as we walk around the unit. Questions such as:

 

* Is the unit is fully inflated, empty of debris, and no holes or damages are present

* Is the unit sand bagged/or secured to the ground with steaks

* Does weather show signs of dangerous weather conditions

* Cables and other items aren't in a hazardous position to people. 

* All items requested are present. 

 

Once customer signs this sheet this assures both you and the customer that everything was done correctly and also, helps you not forget any steps. This isn't like insurance or incorporating you business but it will look good in front of a judge should the situation turn out for the worst. 


Edited by floatingcastles, 12 September 2013 - 10:11 AM.

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#53 SD Bouncers

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Posted 17 September 2013 - 09:50 PM

An extra added step I use is a "After Setup Checklist" for the customer and myself. After setup is complete I walk around with the customer and have them check everything off the list as we walk around the unit. Questions such as:

 

* Is the unit is fully inflated, empty of debris, and no holes or damages are present

* Is the unit sand bagged/or secured to the ground with steaks

* Does weather show signs of dangerous weather conditions

* Cables and other items aren't in a hazardous position to people. 

* All items requested are present. 

 

Once customer signs this sheet this assures both you and the customer that everything was done correctly and also, helps you not forget any steps. This isn't like insurance or incorporating you business but it will look good in front of a judge should the situation turn out for the worst. 

You secure to the ground with steaks? Doesnt that get pricey?


Edited by SD Bouncers, 17 September 2013 - 09:50 PM.


#54 libouncedir

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Posted 03 February 2015 - 05:43 PM

When marketing your business dont think of just private rentals. The best thing to do is contact schools, churches and daycares. When you book these types of gigs they usually are repeat customers and the business you get is during the week! Double bonus!!!!


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#55 Cjames808

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Posted 04 April 2015 - 03:19 PM

Many good tips and ideas in here. Thanks to all who have shared and contributed.



#56 Airplay Events

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Posted 24 September 2015 - 08:51 PM

Don't be the cheapest, be the best. I'd rather do one job for $5000 than 50 for $100 each. BOOM!






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