I am often asked how much money is needed in order to open a party rental business, and the answer I give always seems to shock people. A Tax Return is really all the money you need in order to bounce into the inflatable rental industry.
Now my answer is not as vague as it may seem being that tax returns come in a variety of amounts, so lets say for the sake of this article we use an average tax return of $3500. This amount almost seems laughable as start up capital for any other business, but for inflatable rentals an amount this small can actually get you started.
This is the reason I consider the party rental business the world's greatest business opportunity that everyone ignores. No one really pays attention or even wonders' how much money we're actually making, and I hope it remains that way. I like being ignored by the investment community because it keeps market saturation to a minimum which means more money for me and my colleagues.
Like you, I use to rent a princess castle and other forms of entertainment every year for my daughter's birthday parties prior to me getting into the business, until one day I asked the guy who was delivering the castle a question that changed my life forever.
"Hey buddy are you making any money doing this?"
The guy looked at me with a real conceited grin and answered my question with a more powerful question. "Well how much money did you pay me? When I actually though about it I paid him $380 for the castle, cotton candy machine, and a one hour trackless train ride. Then the guy when on to say,"I have 10 parties just like this one for Saturday and Sunday".
As he walked away I had the feeling like I was in a Spike Lee movie when the actor is standing still but the room is circling around him. I can honestly say his answer changed my life because it was at that moment I realized that not only did I book him every year for my daughter's party, but I also referred him to all of my friends and family. He was making a killing off us and no one even though to add it up until that day. It was at that exact moment I wanted in on the party rental business, and nothing was going to stop me.
Now this conversation with the owner of that company took place in 1994, by the end of 1995 I was delivering my own castles to my own friends and family. The reason I shared that story was to say this, I started my rental company with a $3500 tax return. Sure that small investment on my end didn't buy my me enough units to put any of the existing rental operations out of business, but it did get me in the game. I took my tax return that year and purchased two 13x13 castles, and the rest is now inflatable history.
Despite the fact that I didn't have enough inventory to put anyone out of business or even threaten their existing clientele, I did have enough inventory to service my own friends and family which instantly cut off the cash flow going to the guy we hired every year. With only two castles and a lot of creative promotions my little business grew into one of the largest rental companies in my town.
As I always say, think of how many people you know who have elementary age children? Now multiply that number times 10, because there are at least 10 kids at every birthday party. Here is the best part that I saved for last, you already know all the people you need in order to make at least a $100,000 a year. I promise you almost every adult you know has children, and all of their kids have a birthday party every year. Think about it!
I have just given you the pathway to world greatest business, you can continue to ignore our earning potential to the delight of me and my colleagues, or you can join us. The choice is yours.
Tyronne Jacques
Bouncer Boss
Bouncing N Cash
http://www.bouncingncash.com
Bouncing N Cash 2010 Product Line
Sunday, December 6, 2009
Wednesday, December 2, 2009
It's Show TIME!
It's Show TIME!
Well not exactly, but this is the time of year that you really have to put the work in if you plan to have any rental revenue for the winter.
Late fall will always mark the beginning of the off season, or a period of decline in rental reservations. I have spent a great deal of time providing tips that will help you offset the decline in sales during the winter months. Before you can tackle the problem with declining sales in the winter you have to first understand what happens to your rental sales after Black Friday.
Unfortunately what is a great time of celebration for retailers, often marks the beginning of the season of red for the outdoor events market. Party rentals are primarily a commercial outdoor service, which means as the weather goes, so will our sales. The market north of Tennessee will normally see a decline in reservations towards the beginning of October, south of Tennessee will experience the same decline around November 15. The reason for the decline is really simple, it's cold.
There are still some die hard customers who will still order inflatables in the colder months, but this segment of our market is really too small to be divided up by all of the rental companies in your market. So the question remains; how can I sustain my revenue during this period?
Listed below are 3 strategies that will create a revenue source until the spring arrives with a bail out.
During the winter there is a big demand from retailers for advertisement space. Rent your really tall units out as advertisement displays for local business. It is always a good idea to have two units that are over 16ft tall because the units can be attached with the advertisers banners. You can even take two units and place them side by side and attach the customer's banner in the middle displaying whatever message the customer wanted. You can also turn the castle sideways allowing the side of the unit to face the street. This technique will allow you to place a really large billboard size banner on the unit transforming it into a traffic generating inflatable. The good news is you can charge the commercial customers for a one week rental, which will produce mid week revenue. Yes!
Despite cold temperatures kids still love to run and jump. I suggest that you add two dry slides, and two obstacles courses to your inventory for the winter months. Every January the nation gets caught up in "Get Fit for the New Year". Here is where you take one dry slide and one obstacle coarse and promote kid fitness to all of the schools, community centers, and church organizations in your town. The goal here is to make any money you can Monday - Friday, this way the weekend rentals will only push you over the top. Yes!
Finally don't rule out the earning potential of costumed character rentals and cotton candy machines. A large percentage of our clients will not reserve a castle during the winter out of fear of their child getting sick after jumping in the cold all day. Please keep in mind that children born during the winter months still have birthday celebrations, the only difference is the parties are held inside. Costumed Character rentals are a great way to capitalize on indoor parties. The absolute best part of character rentals is you can book 3 - 6 parties a day ranging from $99 - $175 per party. This is where you tie in your cotton candy machine, and face painting which really maximizes your earning potential per party. Yes!
In one of my previous articles I shared how I would allow my preferred clients to keep the unit from Christmas Eve until January the 2nd for only $149 - $179 for the entire week. If you plan to use this strategy then it will require you to get your direct mail brochures out before the second week of December.
Whatever strategy you decide to use please approach it with a positive attitude, and an appreciation for every customer you generate during the off season. Please visit our website for addtional free sales strategies http://www.bouncingncash.com As always, "were never going to survive unless we get a little crazy". Crazy means Creative.
Tj - "Bouncer Boss"
Default Author Bio:
Tyronne Jacques is the GM of Sales and Marketing for Bouncing N Cash. We invite you to visit out website at http://www.bouncingncash.com or email us at tj@bouncingncash.com
Well not exactly, but this is the time of year that you really have to put the work in if you plan to have any rental revenue for the winter.
Late fall will always mark the beginning of the off season, or a period of decline in rental reservations. I have spent a great deal of time providing tips that will help you offset the decline in sales during the winter months. Before you can tackle the problem with declining sales in the winter you have to first understand what happens to your rental sales after Black Friday.
Unfortunately what is a great time of celebration for retailers, often marks the beginning of the season of red for the outdoor events market. Party rentals are primarily a commercial outdoor service, which means as the weather goes, so will our sales. The market north of Tennessee will normally see a decline in reservations towards the beginning of October, south of Tennessee will experience the same decline around November 15. The reason for the decline is really simple, it's cold.
There are still some die hard customers who will still order inflatables in the colder months, but this segment of our market is really too small to be divided up by all of the rental companies in your market. So the question remains; how can I sustain my revenue during this period?
Listed below are 3 strategies that will create a revenue source until the spring arrives with a bail out.
During the winter there is a big demand from retailers for advertisement space. Rent your really tall units out as advertisement displays for local business. It is always a good idea to have two units that are over 16ft tall because the units can be attached with the advertisers banners. You can even take two units and place them side by side and attach the customer's banner in the middle displaying whatever message the customer wanted. You can also turn the castle sideways allowing the side of the unit to face the street. This technique will allow you to place a really large billboard size banner on the unit transforming it into a traffic generating inflatable. The good news is you can charge the commercial customers for a one week rental, which will produce mid week revenue. Yes!
Despite cold temperatures kids still love to run and jump. I suggest that you add two dry slides, and two obstacles courses to your inventory for the winter months. Every January the nation gets caught up in "Get Fit for the New Year". Here is where you take one dry slide and one obstacle coarse and promote kid fitness to all of the schools, community centers, and church organizations in your town. The goal here is to make any money you can Monday - Friday, this way the weekend rentals will only push you over the top. Yes!
Finally don't rule out the earning potential of costumed character rentals and cotton candy machines. A large percentage of our clients will not reserve a castle during the winter out of fear of their child getting sick after jumping in the cold all day. Please keep in mind that children born during the winter months still have birthday celebrations, the only difference is the parties are held inside. Costumed Character rentals are a great way to capitalize on indoor parties. The absolute best part of character rentals is you can book 3 - 6 parties a day ranging from $99 - $175 per party. This is where you tie in your cotton candy machine, and face painting which really maximizes your earning potential per party. Yes!
In one of my previous articles I shared how I would allow my preferred clients to keep the unit from Christmas Eve until January the 2nd for only $149 - $179 for the entire week. If you plan to use this strategy then it will require you to get your direct mail brochures out before the second week of December.
Whatever strategy you decide to use please approach it with a positive attitude, and an appreciation for every customer you generate during the off season. Please visit our website for addtional free sales strategies http://www.bouncingncash.com As always, "were never going to survive unless we get a little crazy". Crazy means Creative.
Tj - "Bouncer Boss"
Default Author Bio:
Tyronne Jacques is the GM of Sales and Marketing for Bouncing N Cash. We invite you to visit out website at http://www.bouncingncash.com or email us at tj@bouncingncash.com
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