Yes, owning an event rental business can be highly profitable. In fact, if done correctly, you can see a return on your investment (ROI) that exceeds 100% in the first year. and over the lifetime of the equipment more than 1,000%.
In just a few years, my party event rental business grew from generating $1,000 in revenue in a year to more than $24,000 in monthly revenue – without spending anything on marketing.
The Crazy thing is, that even though we had $24.000 in revenue we still left money on the table because we had to turn people away due to lack of equipment!
So, if you’re looking for a business that can generate a lot of revenue quickly, then owning an event business is definitely something to consider.
You can expect to see returns on your investments that are greater than 100% in your first year if you have the appropriate equipment. With the right tools, you can achieve incredible results in a very short time frame.
In this post, I will show you how to get started with your own event rental business, and how you can make a great ROI from it.
We will cover these important steps in this post:
- How to start an event rental business?
- is a newly started party rental business profitable?
- How to make your event business more profitable?
- What products to start with?
- Event rental business tips
How to start an event rental business
Starting an event rental business is easy. anyone can do it. But if you want to scale the business fast, here is what you need to do.
1. Choose the right products
When starting an event rental business, it’s important to choose products that are in high demand and that people will use frequently. This way, you can ensure that you have a steady flow of customers coming through your door.
Pro tip: We have made a list of what people rent for parties – Best ROI in 1 year. So if you want to get a head of your competition, you might want to read this article.
You can start with niche products like Bumper balls, Drunk Goggles, or even Bouncing castles. Getting into tents, tables, and chairs is a bit more mainstream, and there is a lot of demand for it, but the market is more saturated and leaves less of a profit. So it is important to take into account how much supply and demand there is for a given product. I will go into more details on product selection in the section “make your event business more profitable” below.
It is very important that you choose products that have a long life, and that is built for professional use. If you are too cheap when buying equipment for your business, you might end up with too many repairs and too short a lifetime for making a decent profit.
2. Start small – Start a party event rental business from home
It’s always best to start small when launching any new business. This way, you can test the waters and see if there is actually a demand for your products or services. You can then expand your business as needed.
Keep your ego out of the equation when starting a business, Many business owners lose their business before they even get started because they overspend on unnecessary things.
If you’re starting an event rental business, you don’t need a huge office space or a fleet of vehicles. You can start small from your garage, and then expand as your business grows.
3. Offer great customer service
One of the most important things to remember when running an event rental business is to offer great customer service. This means being friendly, helpful, and responsive to customer inquiries.
When it comes to providing great customer service, there are a few things you can do to set yourself apart from the competition.
First, always be friendly and helpful when dealing with customers. Answer their questions promptly, and be willing to go the extra mile to help them out. Remember most customers are new to planning events and you can help guide them and in return get a customer for life.
Second, make sure your equipment is in top condition. If there are any problems with your equipment, fix them immediately. And always make sure you have backup equipment in case of a breakdown.
Third, price your products fairly. Don’t overprice your products, and be willing to negotiate on pricing if needed.
By following these tips, you can ensure that your customers will be happy with your service and will be more likely to recommend your business to others.
4. Invest in quality party equipment
When starting an event rental business, it’s important to invest in quality equipment. This will ensure that your customers are happy with the products they’re renting from you and that they come back for more in the future.
furthermore, you will save time on repairs and your equipment will last longer.
Examples of quality party equipment:
Buy bumper balls made of TPU instead of the cheaper PVC models.
There are a few reasons why TPU is a better choice than PVC for event rental businesses. First, TPU is more durable than PVC, meaning it will last longer and require less maintenance. Second, TPU is more flexible than PVC, making it easier to fold and store when not in use. Third, TPU is less likely to crack or shatter than PVC, which can be dangerous if not handled properly. Finally, TPU is more environmentally-friendly than PVC, meaning it produces fewer toxins when it’s burned.
Bouncing castle quality
One more example of quality party equipment would be inflatable bouncers.
Check to see if it’s composed of PVC tarpaulin. Make sure it contains laminated double-layer PVC and triple-layer materials in high-traffic locations. All seams should be hand machined double stitched for strength and durability, with quadruple stitching in high-pressure zones.
If you’re looking for a reliable blower, Gibbons Fans is one of the most well-known names in the business, with a well-made and trustworthy product. They’ve outperformed all of my previous blowers, and they’re quiet when running.
5. Spread the word
Once you have everything up and running, it’s important to start spreading the word about your business. You can do this by creating a website, setting up social media accounts, and advertising in local publications.
x great ways to spread the word
One of the best ways to spread the word about your event rental business is to create a website. This will give you a platform to showcase your products, services, and prices. Be sure to include plenty of photos and videos, as well as a list of FAQs to help potential customers learn more about your business.
Another great way to spread the word about your business is to create a listing on Google My Business. This is a free service from Google that allows businesses to create a profile and list their products and services. potential customers can then find your business locally when they search for keywords related to your business.
Write an inspiration post on your website and share the link on social media accounts, this is a good way to get people interested in your business and show them what you have to offer.
Make flyers and posters with special offers to spread the word in your community, remember to add your website address and social media handles.
6. Things to be aware of before starting a rental business
Like most other businesses there is a seasonality to the demand. The majority of events take place in the summer months, so that is when you will be the busiest. This doesn’t mean that you won’t have any business in the winter months, but it will be slower. There are a few ways to offset this:
– One is to offer discounts for booking in the off-season. This can help you attract customers who are looking for a bargain.
– Another is to focus on events that take place indoors. This could include weddings, corporate functions, and holiday parties.
It’s also important to be aware of the competition. There will likely be other businesses in your area that offer rentals, so you’ll need to find a way to stand out. This could include offering unique items for rent, or providing exceptional customer service.
Finally, you’ll need to have a good understanding of the legalities involved in running a rental business.
How to make your event business more profitable
There are always lots of different ways to make a company more profitable. You can focus on increasing sales, reducing costs, or improving efficiency. Keeping track of how well you are doing in each of these areas is important to find out what needs to be improved.
Running a rental party business is a numbers game. The more events you do and the more items you rent out, the more money you’ll make. So, one of the best ways to make your rental business more profitable is to simply increase your sales.
To do this, you’ll need to focus on marketing and getting the word out about your business. Make sure you have a strong online presence and that you’re actively promoting your services. You can also offer discounts or special deals to encourage people to use your rentals.
Upsell on orders can easily add an additional 30% to your profits. The key is to be strategic about it and not just try to upsell everything to everyone. For example, if someone is renting a tent for a party, you could upsell them on tables, chairs, and linens.
If you’re renting out sumo suits for wrestling for $120, you might be able to upsell Drunk goggles for obstacle runs or relay runs in the sumo suits for a total of $150. The pitch is simple; Now the customer can wrestle in the suits and make relay races, but they may also play catch with them. So it’s no longer just one thing; it’s a three-in-one solution.
Creating repeat customers will not only increase your sales, but it will also reduce your marketing costs since you won’t have to constantly attract new customers.
- It costs five times more to acquire a new customer than to keep an existing one.
- Customer retention can raise profits by 25-95% by improving customer loyalty by 5%.
- The probability of selling to a client you already have is 60-70%, but the chance of selling to a new customer is 5-20%.
Finally, always be looking for ways to improve efficiency in your business. This can include streamlining your processes, automating tasks, or investing in better equipment. By making small changes in your business, you can save time and money which will boost your bottom line. Following these tips, you can easily make your rental business more profitable.
What products to start with?
What products you should start with for your party rental business depends on a few things. First, what is the market like in your area? If there are already a lot of party rental businesses, you may have to specialize in order to stand out. For example, you could focus on Fun party activities for adults or children’s parties. If there are not many other party rental businesses in your area, you can start by offering a wide range of products.
Some essential party rental products to get you started include:
-Tables and chairs
-Dishes and glassware
– Dance floor
– Fun party activities
You may also want to consider offering additional services such as:
– Party planning
– Event coordination
– Onsite event staffing
Once you have a good understanding of the market in your area and what type of party rental products and services are in demand, you can start sourcing suppliers and building your inventory. Always be sure to get clear pricing from suppliers so that you can accurately estimate your costs and set competitive prices for your customers. Then, start marketing your business to potential customers!
We have made a post on what people rent for parties – with the best ROI in 1 year. So if you want to scale your business fast, this is a must-read post.