Do you want to know how much money bounce house rental businesses make yearly? If YES, here are 7 factors that determine the profit margin for bounce house owners. In order to have an idea of the amount a bounce house owner is expected to make daily, weekly, monthly or yearly, you should clearly define the services that bounce houses offer.
A well – equipped bounce house contains inflatable/bouncy castles (closed inflatable trampolines, bouncy houses, moon bounce, moonwalks, or CITs et al) which are temporary inflatable structures, buildings and similar items that are rented for functions and used for recreational purposes, particularly for children to catch fun to the fullest.
Statistics has it that there is a steady increase in the number of families that visit bounce houses and the fact that these facilities are closer to residential areas makes this possible. In order words, with the increase in the number of people that visit bounce houses, there is a corresponding increase in the revenue generated by bounce houses.
So, with that in mind, we can estimate what a bounce house is expected to make. These businesses make an average of $231,000 and above annually in the United States, with an average revenue of $63 per Sq. Ft. The data is from the AFS 2016 Marketing Best Practices Research Report.
That report contains much more detailed data by bounce size, etc. Please note that well – established bounce houses make a lot more, in the range of $90+ per Sq. Ft.
It is important to point that there is no one mold-fits-all when it comes to how much a bounce house owner is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average bounce house owner can make yearly and these factors are;
7 Factors That Determine How Much Money Bounce House Rental Businesses Make Yearly
Table of Content
- 1. The Size of the Business
- 2. The Location of the Bounce House
- 3. The Type of Services Available at the Bounce House
- 4. The Management Style of the Bounce House
- 5. The Business Approach of the Bounce House
- 6. The Advertising and Marketing Strategies Adopted by the Bounce House
- 7. The Number of Years the Bounce House is in Existence
1. The Size of the Business
One cannot conveniently state the amount a bounce house owner is expected to make yearly if you do not know the size of the business and the number of kids the bounce house can accommodate per session.
A bounce house that operates from a garage will make far less than a bounce house that operates from a standard facility. If your bounce house is large enough, it can accommodate more kids and that will mean increased membership.
We must not rule out the fact that the location of a bounce house is a major factor that will determine the amount the owner can earn monthly and yearly.
If a bounce house is located in a highbrow area, an area with the right demography especially as it relates to families that have children and also with the financial means (purchasing power), then the owner of the bounce house is expected to make more money.
For example, a bounce house in Orlando charges – $110, in Denver – $157, in Minneapolis – $162, in Washington D.C – $175, in Dallas – $128, in San Diego – $100 and in New York Metro – $200. The truth is that you will struggle to make good money from your bounce house if you locate the business in an area filled with low income earners or in a ghetto or a place where the residents are pretty busy.
3. The Type of Services Available at the Bounce House
Another important factor that will determine how much a bounce house owner is expected to make is the type of complimentary services offered by the bounce house.
You will agree that the money a bounce house that offers bouncy castle, amusement and recreation services, Go-karting, mountain climbing, snowmobiling, video game house, bowling alley, BBQ joint, food and drinks court, Ice cream shop, juice and smoothie bars and also sale of fitness and sports merchandize et al will be far larger than what a bounce house that only offers only bouncy castles for kids.
4. The Management Style of the Bounce House
Another key factor that will determine the amount a bounce house owner is expected to make yearly is the management style of the bounce house owner.
Trust me, the results you will get when you are a good manager will definitely be different from a bounce house owner with poor management style and customer services will make. The idea is that a good bounce house owner will not just retain their old customers, they will also keep getting new customers especially through recommendations.
5. The Business Approach of the Bounce House
There are different business approaches that a bounce house owner can choose from and no doubt it will greatly influence the amount they are expected to make monthly and yearly.
Of course, we know that a bounce house owner may decide that they want to operate only one bounce house and do their marketing alone and they can also decide to go into franchising and also partner with other businesses that will recommend clients to them.
It is easier to find bounce houses that operate franchises partnering with schools, children birthday party organizers and children weight loss clinics et al make more money. In essence, a well – organized bounce house who work with others will surely make more money than a bounce house that only operates from one location.
Another key factor that will determine the amount a bounce house owner can make yearly is the advertising and marketing strategies adopted by the bounce house. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings, but you may be expected to spend more.
But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a bounce house owner that is engaging in aggressive advertising and marketing to make same amount yearly with a bounce house owner that is passive with its advertising and marketing.
7. The Number of Years the Bounce House is in Existence
Lastly, another key factor that will determine the amount a bounce house owner is expected to make on a yearly basis is the number of years the bounce house is in existence. In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well – managed.
For example, in your first fiscal year (FY1) you might make a hundred thousand dollars (100,000), in your second fiscal year (FY2) you might make one hundred and fifty thousand dollars ($150,000) and in your third fiscal year (FY3) you might make two hundred and fifty thousand dollars ($250,000).
Please note that if you are operating a traditional bounce house and you invested massively in equipment, and it becomes obsolete very quickly you might make less money from the bounce house. In other to maximize profits, you should try as much as possible to keep the capital investment at a minimum.