You should determine what the average rental rate is in your area. To do so, you will need to open up your phone book and/or other directory source and make phone calls to inquire about prices and length of rentals?  Ask what type of inflatables they have available? Ask what other equipment they might also have for rent and it’s pricing such as concession machines and games?  

Many manufacturers would like you to believe that just because you have an inflatable for rent, that it WILL get rented.   This makes this business look more enticing and you’ll want to buy from that manufacturer. However, depending on your area this may not be the case.  

Average rental prices through the US vary, from $90 to $125.  It could be less or more depending on your area.  Let’s look at possible rental scenarios.

THE FOLLOWING IS BASED ON A UNIT GOING OUT 1.5 TIMES PER WEEK

If we have an average rental price of $90 and it rents out 1.5 times per week x a 24 week rental season in cooler climates. Yearly Gross income 3,240.00 – expenses. 

If we have an average rental price of $90 and it rents out 1.5 times per week x a 52 week rental season in warmer climates. Yearly Gross income 7,020.00 – expenses. 

If we have an average rental price of $90 and it rents out 1 times per week x a 52 week rental season in warmer climates. Yearly Gross income 4,680.00 – expenses. 

If we have an average rental price of $125 and it rents out 1 times per week x a 24 week rental season in cooler climates. Yearly Gross income 3,000.00 – expenses. 

If we have an average rental price of $125 and it rents out 1 times per week x a 52 week rental season in cooler climates. Yearly Gross income 6,500.00 – expenses.

THE FOLLOWING IS BASED ON A UNIT GOING OUT .7 TIMES PER WEEK

If we have an average rental price of $90 and it rents out 1 times per week x a 24 week rental season in cooler climates. Yearly Gross income 1,512.00 – expenses. 

If we have an average rental price of $90 and it rents out 1 times per week x a 52 week rental season in warmer climates. Yearly Gross t income 3,276.00 – expenses. 

If we have an average rental price of $125 and it rents out 1 times per week x a 24 week rental season in cooler climates. Yearly Gross income 2,100 – expenses. 

If we have an average rental price of $125 and it rents out 1 times per week x a 52 week rental season in cooler climates. Yearly Gross income 4,550.00 – expenses. 

Your rental season and pricing may vary, please adjust accordingly.

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How much do bounce houses cost?

Bounce Houses vary from manufacturers.  They may use different materials, some may use a ‘cheaper’ vinyl. They might not double stitch stress points. They could also charge extra for add-ons to the inflatable unit. Such as a vinyl roof, which prevents sun exposure which could lead to hot vinyl and burns.  They might not include a front step which is highly recommended so that children can easily access the door or not “fall out” of the unit directly onto the ground.  A zipper is another nice amenity for deflation, drying of the unit, and checking for worn vinyl or weak seams. Less price could mean less useable life in a unit. Please research your equipment before your final purchase.  

You’ve probably already done some research and know that sizes and prices vary.  For my example within this document, I’ll use a 15 x 15 unit purchased for $1595 and $200 shipping.  Our final purchase price example is $1795.00.

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EXPENSES

You’ll have initial start up expenses and reoccurring weekly/monthly/yearly expenses. 

INITIAL EXPENSES

YEARLY EXPENSES

General Liability Insurance

Income taxes

Business Insurance

Business License

LLC or Corp reporting

Equipment Replacement

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Details of the above expenses

Sandbags, often used by companies when the ground is too hard that a stake cannot penetrate and hold adequately for safe operation of the inflatable.  Would also be required if you have an indoor rental.  An inflatable in use must ALWAYS be secured.

Stakes, although your inflatable comes with 12” nails.  These are NOT adequate to secure an inflatable.  Stakes in lengths of 30” – 42” must be used (see your state requirements)

Hammer, to pound in stakes.  This could be as large as a sledge hammer if required.

Cones,  or another marking tool is required if you cannot sink the stakes flush into the ground.  Stakes could become a tripping or impalement hazard otherwise.

Bucket, an optional item.  But also a useful item.  It can hold your 12” nails, hammer and straps while your inflatable is being used.

Roll of duct tape, another optional item but frequently used to tape down extension cords to prevent tripping hazards.

Extension cords, with a gauge of 12/3 is often required.  Also, an optional reel to hold your cord to keep your equipment neat and professional looking.

Hand Truck, you will require a hand truck to transport you bounce house from your vehicle or trailer to the rental location.  We suggest a wide hand truck to help prevent tipping and one that also has the wheels located behind the back plate. We frequently suggest the TH-800 that can be purchased from tractor supply store item #2225274.

Trailer (or similar source to transport equipment), this could vary greatly depending on your budget. 6 or 7 feet wide, length, enclosed or open.  Prices vary greatly.

Buying a domain and having a website built, you may have the ability or resource to have your website built for free.  You may also think that a website isn’t required.  Majority of companies think a website is an invaluable tool that is required in this business.

Becoming and LLC or a Corp, You will need to consult an attorney and find out about becoming an LLC or Corp.  Recommendations vary by state.  It is necessary to separate your personal property with your business affairs.

Business License, State, County and City requirements may vary.  You will need to research your own state requirements.

Printing of Liability Contract and Safety Waiver, You will most likely need a double or triplicate copy of the liability waiver and safety waiver. 

Vacuum, You will need a small portable vacuum.  Most manufacturers recommend one with a rechargeable unit.

Fuel, figure in weekly fuel expenses.

Labor, will you need additional labor other then just yourself?

Cleaning Supplies, What will you clean your units with? Mat-clean? Odo-ban? Lysol? We recommend a cleaner with anti-bacterial properties.  It is also recommended that you follow up monthly (or as needed) with a product such as Armor-All.

Labor for Cleaning, Will you have time to clean your units? Could you clean them onsite or would you have to reset them up at another location for cleaning?

Website, where will you host your site? What monthly fee will you incur?

Phone, will you get a dedicated business line?  Most professional companies do.

            Also consider, who will answer your phone if you work another 9 – 5 job

Yellow page ad, Will you pay for a display ad in your phone book?

Other advertising, you will most likely incur other advertising expenses: business cards, thank you post cards, flyers, vehicle graphics or magnets, local kids magazine, direct mailing. Newspapers, or other marketing.  How will you make your business known?

General Liability Insurance, inflatable insurance can take a hefty portion of your profits. Some states/areas charge $1200 an inflatable per year.  If you are able to obtain insurance at all.  Some insurance companies do not insure water slides or slides over 16 feet tall.  You will need to research your insurance BEFORE you purchase your units.

Income taxes, how much of your profit will go toward income tax?

Business Insurance, this insurance is separate from your general liability.  Honestly, most do not have it, but it is worth mentioning.  If anything happens to your business tangible property it is not covered under your general liability insurance or your homeowners insurance!

LLC or Corp reporting, Most states require a yearly members reports and meeting minutes.  An attorney often files this paperwork.  Although probably minimal it is worth mentioning.

Equipment Replacement, Tarps wear out, extension cords get internally broken.  Items will need to be replaced.

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INITIAL EXPENSES

$_________ Sandbags ($7 - $10 each)

$_________ Stakes ($5.00 each)

$_________ Hammer (Free - $5.00)

$_________ Safety Cones ($5.00 each)

$_________ Bucket (Free - $5.00)

$_________ Roll of duct tape ($3.00)

$_________ Hand Truck (TH-800 mentioned previously is $90.00)

$_________ Trailer (price varies greatly)

$_________ Buying a domain ($8.95 - $35.00 shop around)

$_________ Having Website Built (Free - $250.00)

$_________ Becoming and LLC or a Corp (varies greatly $150 - $300, contact a local attorney or state department)

$_________ Business License (States vary, may requires state, county and city licensing.)

$_________ Printing of Liability Contract and Safety Waiver (depends on quanitity required and how  

many carbonless copy forms you may want/require).

$_________ Vacuum (do you want a cordless/rechargeable?, prices vary greatly)

$_________ Misc. / Unknown / Unexpected Expenses

WEEKLY EXPENSES

$_________Fuel

$_________Labor

$_________Cleaning Supplies

$_________Labor for Cleaning

$_________ Misc. / Unknown / Unexpected Expenses

MONTHLY EXPENSES

$_________Website Hosting ($5.00 - $10.00)

$_________Phone

$_________Yellow page ad

$_________Other advertising

$_________ Flyers

$_________ Business Cards

$_________Car/Truck Magnets or vinyl graphics

$_________ Newspaper 

$_________ Radio Stations

$_________ Local children’s magazines

$_________ Misc. / Unknown / Unexpected Expenses

YEARLY EXPENSES

$_________General Liability Insurance ($550 - $1200 PER unit, varies greatly)

$_________ Income taxes

$_________ Business Insurance

$_________ Business License (reapply yearly)

$_________ LLC or Corp reporting (Meeting minutes must be sent to state the appropriate state department yearly,

may have to have an attorney prepare yearly paperwork)

$_________ Equipment Replacement

$_________ Misc. / Unknown / Unexpected Expenses

YEARLY ESTIMATED GROSS INCOME $ ___________

GROSS INCOME – ESTIMATED EXPENSES = $ ___________ (net income)

NET INCOME $ ______________

        Divide by Hours spent taking reservations, cleaning and delivering.$ ______________

    Equals your Hourly Wage $ ______________