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Starting a party rental business in reality is kinda broad. In the industry, there are many niche specialties or you can be as broad as you like. What we mean by this is that for example there are rental companies that only deal in renting "linens" or "chairs" but not both. Then again there are companies that offer both plus offer a broad general range of items.
How to decide which route to take "niche market" or "broad range, general items"
To make a decision like this there are a few things to consider:
Above are just a few things to consider, but by no means get discouraged as you can always start small and grow as we all did.
Another part that we did not discuss and will now get into is providing "Event Services". Examples of services would be:
As you can see there are also services that you can provide. Now you may think well I can do this. If so that is great.
If for some reason you feel that you do not have the skill set to offer the above services that is fine. Find your niche in the industry. Also, there are company owners out there that do not have the skill set but hire the right people who do. Sometimes but not always providing "services" involve a lot less stock than a company that does general rentals.
If you decide to hire people with the right skills as sub-contractors they sometimes even have their own equipment. Please bare in mind if going this route one should make it their priority to fully understand that niche so you understand the terminology, fee structure, and so on...
Next, you might want to consider the coverage area you are willing to set. Selecting too small of an area can limit your client potential depending on where you are located or selecting too large of an area can also spread you too thin and cause you to be overworked. Depending on the niche you decide look at your competitors to get a general idea of their coverage and choose from there. Start off being conservative and you can always expand from there.
Based on some of the items we discussed so far if you have any questions or suggestions please feel free to comment below.
#business #education #startup
Most beginners think of delivery as just a "drop-off & pickup" to a client. If that were the case you would only have (2) trips.
In reality:
So when you viewed it as a drop-off & pickup that is just "two trips" that is not the case when in reality you did "four trips"
With that in mind, how do you then calculate the delivery cost?:
Charge a flat fee - If you are a vendor that "only" delivers locally and runs a small operation then this might not be bad for you. If you then decide to deliver outside your region you would have to then adjust you're fee.
Charge by Milage - Using this method works a little better provided that you have "a base flat fee + mileage"
example: $55 base local rate within a 5-mile radius & $1.25 for every additional mile after that.
Add it to the price - This method is ok provided you are local or you are quoting over the phone and know exactly how much you will charge for your items and how much you are looking to charge for that delivery. One drawback is that based on the items even if local the delivery rate will always change and customers do notice that and may get turned off.
Or not charge at all - Going this route is fine but at the end of the day, your business is losing money. Even fast food places charge a delivery fee.
With what was mentioned above the main points to remember is that with delivery comes your expenses:
Fuel, vehicle maintenance or repair, employee cost, or labor. The route you choose is up to you. Just make sure that the choice you make helps to cover these expenses and helps you to profit.
Let us and the community know your thoughts on this.
#delivery #fees