Generate Additional Business with Equipment Rentals
Whether you’re in your slow season or just looking to make additional revenue, offering equipment rentals can be a great addition to your business model.
There are many companies that rent equipment as their sole source of revenue that are incredibly successful, like businesses that rent ski gear, bicycles, scooters, or even cameras and boats. This is a very lucrative business model that can help you earn extra money alongside your tours and activities.
Depending on the type of tour or activity company you run, this may be very simple to begin. For example, if you run kayaking tours, you can easily rent out the kayaks while they are not being used. This guide will cover the benefits of renting equipment, steps to get started, and some extra considerations.
Benefits of Renting Out Equipment
Of course, adding another offering to your business can bring in more money. In this case, rather than being confined to typical business hours to pull in cash, you can rent out equipment for longer durations of time such as daily rentals, weekly rentals, and beyond. Although you may set deals for longer rentals, this is still a great way to make more money with equipment you already have available.
Widen your target audience
Not all customers want to go on a guided tour or group activity. Offering rentals is a way for you to market to that customer base as well. People looking for a solo experience or one with their private group can rent your equipment and enjoy their day exactly as they want to.
Pro Tip: Show your knowledge of your surrounding area! Create blog posts or maps that provide good stops and information for travelers renting your equipment. You can also let them know where to go by word of mouth to create a friendly, memorable interaction.
Gain repeat customers
Whether you have customers originally coming in for a rental or for one of your tours and activities, offering both means you can easily gain repeat customers. Capturing repeat business is always a great strategy since returning customers are more likely to make a purchase than new ones.
Ideally you already have your rental equipment because of the tour or activity you run, so there should not be a high initial cost to get the rental side started. Also, if there is not a lot of traction when you first start, it will not devastate your company. You can take your time to market this part of the company and use it as extra money.
How to get started
Starting to offer rentals can be very simple if you already own the equipment. Here are a few steps to get started.
- Research your area: Take some time to study your local market. For instance, if you’re trying to rent bicycles, find out if your area is flooded with bike rental shops, what they are charging, and what type of bikes they offer.
- Set your prices: Once you know how much competitors are charging, you can create your prices at a competitive rate for your area.
- Come up with a marketing plan: There are several ways to market your new rental business: word of mouth, fliers, Google Ads, etc. Basically any way you would market your current offerings!
Pro Tip: While planning this new rental endeavor, as with your typical tours and activities, you have to make sure you have enough equipment to go around. Don’t oversell your rentals and end up short of equipment to run one of your tours or activities, as these likely bring in more revenue.
Other things to consider
Protecting your company
When you start offering rentals, you have to make sure you protect your company and equipment. Be sure that each renter signs a waiver before you let them take your equipment. FareHarbor is integrated with two waiver companies, Wherewolf and SmartWaiver. Both software partners can seamlessly integrate into your Dashboard, saving you time and securing your company.
Taking care of your equipment
Your equipment is your livelihood. When you start renting, your canoes, scooters, snowmobiles, etc. will be getting more action. Perform regular maintenance and thorough repairs as well as cosmetic upgrades.
Now you know the benefits and steps to get started on renting out your equipment. As always, you will have to weigh the options and see if this is the right choice for you and your company.
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