“Why isn’t my party rental business making more money?” you may be asking yourself. After all, the party rental industry is a $5 billion industry and it’s only growing. Business owners are looking for ways to get a bigger piece of that pie. Of course, there are many ways to grow your event rental business, but one of the main things to look at when you want to increase your margins is what is already costing your business the most money. Ask, “How can I reduce that cost” or “How can I amplify my ROI on my current costs?”
When it comes to what is costing the event rental businesses the most money, the answer is simple: Wages.
“Wages are estimated to account 35.2% of total industry expense in 2015” according to the IBIS World Industry report.
The reason is that this industry is complex and requires a lot of jobs. However, when you examine the list of duties IBIS World reviews, it’s easy to pick apart the areas where you can cut down on human labor and transfer duties elsewhere. They list the following as the top needs for human resources:
- Assisting with transporting equipment
- Setup, tear down, and storing equipment
- Administrative work
While the first two jobs listed are clearly jobs that require human effort, all three of the others could be greatly reduced in terms of the human lift with the help of technology.
Administrative work often includes things like counting inventory items to see what you have in stock, or comparing quotes and contracts to avoid double bookings. With inventory software like Goodshuffle Pro, you’re completely crossing these time-consuming tasks off the to do list. Other admin tasks include following up on billing (automated through Goodshuffle Pro), filing contracts (automated through Goodshuffle Pro), and marking items in and out of inventory as they’re being repaired or laundered (all possible with Goodshuffle Pro!)
Sales tend to take more time in this industry because of the time consuming process of building and sending quotes and following up with clients to collect payment. Goodshuffle Pro helps you build quotes in seconds and takes online signatures and payments. This allows more time for your sales team to focus on selling big clients and less on these more tedious tasks. Plus, with the Goodshuffle Marketplace, your sales team isn’t having to build a quote because the consumer does it themselves! You receive a fully baked shopping cart and all you need to do is hit “approve”.
As for marketing, tons of small business owners struggle to educate themselves about building a website, SEO, and Google AdWords. Many are spending far more money than they should with very low results in terms of attracting new clients. What if you had a beautifully designed, e-commerce enabled marketing page on Goodshuffle.com that took your orders, marketed your brand (with direct links to your own site and your phone number) that cost you nothing for the added branding, marketing, and SEO? You're basically hiring a marketing consultant and salesperson for $0.
If you’re already spending 35% of revenue on your employees, it’s time you got the most bang for your buck. Increase sales without increasing your staff. Starting at just $59/mo, you’ll be adding the cheapest salesperson you’ve ever had while increasing results from everyone from your drivers and installers, to your office staff.