So what do people rent for a party? and are the most popular products the best investment for your party rental business?
You see, it’s not only about what people rent the most. It’s also what will make you the best return on investment and how fast it will make you that return.
In this article, we will take a look at the most popular items people rent for parties and see how they rank in terms of the best investment you can make in the short term.
What do people rent the most for parties;
- Tables and chairs
- Tents and canopies
- Games and activities
- Dance floors
What people rent the most for parties may not make you the most money
The most popular items people rent for parties are tables and chairs, tents and canopies, linens, dinnerware, glassware, and flatware. While these are all popular items that you can make a good return on if you invest in them, they may not be the best investment in the short term.
The party rental business is a numbers game, but there is a bit more to it if you want to scale your business fast. And I am about to reveal some of the best tips you will ever read on starting a party rental business.
Let me explain what I am getting at;
Let’s say you want to invest $1,000 in new products for your party rental business. And you want to make a great return on investment, but at the same time, make a profit within one year on that investment so that you can scale your business fast. Let’s look at 2 possible investments you can make, what the outcome will look like over one year, and the lifetime of the investment.
Case #1 Folding Chairs
The first possible party rental investment you could make is folding chairs, which you can buy for $17.99 per chair. Your budget is $1,000 US dollars makes it possible to buy 50 chairs for a total price of $899.50
Let’s say you can rent the chairs for 20 weekends over the first year. The price you can charge depends on the fees in your area but let’s go with $1.5 per chair since that’s a competitive price point.
Then you will make a total of $1,500 over the first year in revenue from your investment which you can reinvest into your business.
Over the chairs lifetime, you should be able to rent out the chairs at least 200 times and make at least $300 per chair, a total of at least $15,000
Case #2 Drunk Goggles
You could also invest in trending drunk goggles for fun party activities. The price per unit is $90 for a party rental business, and you can buy ten drunk Goggles for your party rental business for a total of $900 US dollars.
Let’s also stick with the 20 weekends over the first year for the drunk goggles. The average rental price is $18 per Drunk goggles.
Then you will make a total of $3,600 over the first year in revenue from your investment, which you can reinvest into your business.
Over the lifetime of the drunk goggles, you should be able to rent out the goggles at least 60 times and make at least 10,800.
The conclusion from the 2 cases:
When we look at the 2 cases, it’s not only about what people rent the most for parties because even though you are more likely to rent out the chairs 40 times a year, you will still end up with less capital to reinvest in the short time, than if you invested in drunk goggles.
If we consider the chairs’ lifespan, they are most likely to provide a greater return on your investment over time, but if you wish to reinvest in your business, this will still result in a slower growth curve.
How much money can you make with a party rental business
This is a prevalent question, and how much money you can make from your party rental business depends on how great an investment you have made into your business. So let’s look at how much a party rental business can make on an investment.
Generally, a party rental business makes $20,000 a month on average with a total investment of $100,000 in goods. The monthly income may range from $50,000 to as low as $8,000 outside the season. The investment can be spread out over many years, as most items have a lifespan of 7-10 years.
Obviously, how much you will make depends on lots of factors like;
- The size of your market
- The competition in your market
- What type of products do you offer
- Your pricing strategy
- Your marketing strategy
- Your sales, upsells, and customer service skills
- How efficient are your operations are
How much money do you need to start a party rental business
The party rental business is a great way to earn extra income, but it does require some initial investment. The amount of money you need to start a party rental business will depend on the size and scope of your operation.
A part-time party rental business can be started for as little as $2,500, whereas a full-time venture will cost you around $20,000-$50,000. If you want to support employees with your small business, the investment must exceed $50,000 but could reach up to 200 thousand dollars.
If you are planning on starting a small party rental business, you will likely need around $2,500 – 7,500 to get things off the ground. This will cover the cost of buying some equipment, building a website, logo, etc.
But If you want to start a full-time party rental business, you must invest more money. You will need to rent a larger space and purchase more equipment. The initial investment for a full-time party rental business can be upwards of $20,000 – $50,000.
No matter what size business you are looking to start, it is essential to have a clear idea of your costs before you get started. This will help you determine how much money you need to raise and make it easier to stay on budget as you get your business up and running.