Are bounce house companies successful? What are the pros and cons of owning a bounce house business? This article highlights the major benefits and potential drawbacks of owning a bounce house rental business.
Children who enjoy playing outside are particularly fond of bounce houses and inflatable castles. These inflatable objects with a soft texture have already been deployed in amusement parks around the world, and this relatively affordable business has grown rapidly in the “at-home” party segment.
Everyone wants to talk about the positive aspects of owning an inflatables rental business, but rarely do we hear about the negative aspects.
We hope that by providing you an unbiased view of the pros and cons of operating an inflatables rentals business in this pros/cons list, your decision-making process will be made much simpler. So, let’s start.
Pros and Cons of Owning a Bounce House Business
- Limited time investment
- Limited Overhead
- Local Community
- Commercial Real Estate Expense
- Face-to-Face Interaction
- Simple Business Model
- Daily Business Activities
- Higher Possibility of Getting Referral
- Low Profit Margin
- Higher Chance Of Accident Claims
- Needed All-Time Supervision
- Physical Challenges
- Equipment Damage
- Difficult to Choose the Right Supplier
- High Employee Turnover
- Time Commitment
Pros of Owning a Bounce House Business
A bounce house business is typically a rather straightforward business. You will purchase bounce houses as the business owner and rent them to customers for their events.
Even though starting a business can be difficult, the journey is always beneficial. You can get insurance to start any rental business. Here are a few advantages of founding and running a bounce house rental business.
How Profitable is a Bounce House Business?
Running a bounce house rental business can be quite profitable, especially if you get your marketing and scheduling right. Rental prices can vary depending on where you are and the type of inflatable, but here’s a quick breakdown to give you an idea:
- Smaller units usually rent for $80 to $250 for a four-hour window.
- For four-hour rentals, larger inflatables usually bring in an average of $125.
- Combo units with wet/dry options often rent for $250 or higher.
According to market analysis,
“A single bounce house averages 1.5 rentals per week, earning $188 weekly. If you purchase 4 bounce houses, your business could make around $750 every week.”
During busy times like summer, holidays, or weekends, demand goes up. You can rent out more units, charge higher rates, and make more money in less time. A lot of people even make extra cash by upselling add-ons like concession machines, tables, chairs, or party packages.
Plus, the overhead costs are usually pretty low, especially if you’re running it from home or using a small storage unit. Growing your business is simple; you can just start with a few bounce houses and build from there. It’s a flexible, fun business idea that can bring in steady income, whether you want to do it part-time or go all in.
Limited Time Investment
The time commitment is arguably one of the most appealing aspects of running a bounce house business. Be aware that running a business typically entails devoting significant amounts of time to overseeing the many moving pieces.
Moreover, the bounce house industry’s typical operating method includes driving the equipment to the customer. Also, it will assist to set up and come back at a certain time to take it down and pack it and preparing the unit for the next Customer.
The remainder of your time is yours. While you are doing other things, your equipment is working to earn you money.
Limited Overhead
The typical cost of a bounce house is $1,500 plus $200 for shipping. Budget for a dependable vehicle that can transport several bounce houses at once, as well as a trailer for busier delivery days. Factor in other expenses like labor, insurance and licenses, and that’s about all you’ll spend to get started.
Local Community
One of the best things about starting a bounce house business is that promoting your inflatables business at craft fairs, farmers’ markets or even neighborhood storefront businesses can help you develop your local market and serve new Customers..
Little-to-No-Storage or Commercial Real Estate Expense
Most inflatables rental operators store bounce houses in their garage or other spare space. Those who store units at a storage facility or similar location pay far less that the cost of operating a “brick and mortar” location.
Face-to-Face Interaction & Simple Business Model
This line of work is ideal for you if you thrive on interpersonal interaction. You will interact directly with clients and/or staff members each day if you own a bounce house business. The advantage of a bounce house business is that it has a simple business model, which makes starting and growing the company easier.
Daily Business Activities
Compared to other businesses, bounce house businesses often require a considerably higher physical activity. It’s actual work to deliver, setup, tear down, clean and pack the units. But hey, doing so will reach your activity goals and you don’t have to pay for a gym membership.
Higher Possibility of Getting Referral
Referrals are the lifeblood of any business. It can be a very effective strategy for luring new clients and keeping existing ones, and the cost to acquire a new (referred) Customer is practically zero. Having a strong referral program in place is key to encouraging your clients to recommend your business to their friends and colleagues.
Cons of Owning a Bounce House Business
Like any industry, bounce house rental has its share of unforeseen and inevitable setbacks that can irk even the cheeriest of business owners.
Here are a few drawbacks of operating a bounce house business in the US.
Low Profit Margin
Your bounce house business typically has a gross margin of around 43%, which might make it more difficult to add new expenses while maintaining profitability.
Higher Chance Of Accident Claims
Yes, accidents do occur with bounce houses, particularly when children are present. Children may unintentionally bump into one another or sustain scrapes and bruises. Also, adults having fun in a bounce house designed for adults are just as prone to these mishaps.
However, you can put the right measures in place to prevent mishaps. When installing the inflatable gadget, you have to make sure that it is grounded properly. You also have to ensure that the generator never runs out of fuel and that the electrical cord is always plugged in when kids are using it.
Additionally, look out for any surface flaws that could trap kids.
Needed All-Time Supervision
You should always have at least one adult watching over the bouncy house or slide. Ensure that family members, neighbors, or other parents will accept responsibility for “on site” supervision.
Physical Challenges
You must have the strength (or manpower) to supply the equipment on a regular basis, because a 15 × 15 inflatable weighs around the same as 4 to 5 bags of mortar (several hundred pounds).
Equipment Damage
You must also be aware of potential equipment damage. Your inflatable assets may suffer in bad weather, not to mention rowdy event attendees and visitors who disregard safety regulations.
It makes sense to plan ahead and buy repair supplies and kits, as well as to have long-term replacement strategies for outdated or worn-out equipment.
Difficult to Choose the Right Supplier
The majority of businesses in this industry use suppliers and manufacturers, which isn’t necessarily a bad thing.
Finding the best source, though, might take a lot of time, effort, and trial and error. If carried out correctly, this procedure can help you save months of time and effort. Find out more about this in the “seeking a supplier” section below.
High Employee Turnover
Employee turnover is a common phenomenon in the bounce house industry, which may be expensive and time-consuming for your company.
Make every effort to avoid this by offering benefits, competitive pay, and a pleasant work atmosphere.
Time Commitment
All duties and choices associated with operating a bounce house business are yours. Delivering, setting up and removing bounce houses are “hands on” activities. Yes, your units will earn you money when in use, but the coordination and labor are real expenses that you must plan for.
How Much Does it Cost to Start a Bounce House Rental Business?
Starting a bounce house rental business isn’t complicated, but it does take some money to get going. You’ll need between $3,000 and $20,000, depending on your setup’s scale and quality.
The biggest chunk of the cost is for the bounce houses themselves. Commercial-grade inflatables cost around $1,000 to $5,000 each. Most new operators start with 1–3 bounce houses, so you’re looking at $2,000 to $10,000 right there.
Liability insurance is a must because it protects your business in case something goes wrong. This usually costs $500 to $2,000 a year. You’ll also need local licenses and permits, which add another $100 to $500.
Don’t forget about transportation! You’ll need something like a used cargo van or trailer to move the bounce houses around, which can cost $3,000 to $8,000. If you don’t have enough storage at home, renting storage space will cost you an extra $100 to $300 a month, depending on where you live.
Your bounce houses need to stay clean and in good shape, so set aside $200 to $500 a year for maintenance and cleaning supplies. Then there’s marketing, tasks like building a website, running ads, or making flyers, which will cost you $300 to $1,000 to get started.
In total, if you’re going small with just 1–2 bounce houses, you’ll spend about $3,000 to $12,000. If you want a bigger setup with 3–5 bounce houses, transportation, and storage, it’ll cost more like $9,000 to $20,000. The key is to plan your budget carefully for a successful start.
Estimated Costs for Starting a Bounce House Rental Business
Here’s a quick breakdown of the costs involved in launching your bounce house rental business:
Expense Category | Estimated Cost Range |
Bounce Houses | $1,000 – $5,000 each (typically $2,000 – $10,000 for 1–3) |
Liability Insurance | $500 – $2,000 per year |
Licenses & Permits | $100 – $500 |
Transportation (Van/Trailer) | $3,000 – $8,000 |
Storage Rental (if needed) | $100 – $300 per month |
Maintenance & Cleaning | $200 – $500 per year |
Marketing (Website, Ads, Flyers, etc.) | $300 – $1,000 |
Total Estimated Startup Cost | $3,000 – $12,000 (small setup) / $9,000 – $20,000 (larger setup) |
Disclaimer: The information provided is a general estimate for informational purposes only. Costs may vary depending on location, equipment quality, and business needs. We recommend consulting reliable sources and researching thoroughly before making financial or business decisions.
What Kind of Insurance Do You Need For a Bounce House Rental Business?
Operating a bounce house rental business is exciting, but it comes with risks that can be costly without proper coverage. Having the right bounce house rental insurance ensures your business, equipment, and clients are protected. Here’s a guide to the essential types of insurance for your bounce house business:
- General Liability Insurance
Bounce house business insurance typically starts with general liability coverage. This protects you if someone is injured while using your bounce houses or if your equipment causes property damage. Many event venues require this insurance, and coverage limits usually begin at $1 million per occurrence, including legal defense costs. - Property Insurance
Your inflatables and other equipment are valuable assets. Bounce house insurance for property protects against theft, fire, or accidental damage, whether your items are in storage or being transported to an event. Policies covering replacement cost rather than actual cash value are recommended for full protection. - Commercial Auto Insurance
If your business involves transporting bounce houses, insurance for bounce house business vehicles is essential. Commercial auto insurance covers accidents involving your vehicle and the equipment inside, safeguarding you from unexpected repair or liability costs. - Workers’ Compensation Insurance
For businesses with staff helping at events, bounce house business insurance often includes workers’ compensation. This coverage handles medical expenses and lost wages if an employee is injured on the job, ensuring protection for both your team and your business. - Optional Coverage
Additional policies can give extra peace of mind. Event insurance covers unexpected cancellations or incidents at a venue, while equipment rental insurance protects higher-value inflatables. When considering bounce house insurance costs, bundling policies often reduces premiums while maximizing coverage.
Tips for Choosing the Best Bounce House Insurance
Protecting your bounce house rental business starts with picking the right insurance. Here is how to make sure you get the coverage that works for you:
- Shop Around for the Best Coverage
Do not settle for the first policy you find. Compare multiple providers to find insurance that offers strong protection without breaking the bank. - Know What is Covered and What is Not
Some policies have exclusions such as large slides, water inflatables, or specialty equipment. Read the fine print so you are never caught off guard. - Bundle and Save
Many insurers offer discounts if you bundle general liability, property, and vehicle coverage. Bundling keeps things simple and can save you money. - Protect Your Reputation and Peace of Mind
The right bounce house business insurance does more than cover costs. It shows clients you are professional and responsible, giving them confidence to book with you.
Choosing the best bounce house insurance at the right bounce house insurance cost ensures your bounce house rental business insurance protects both your equipment and your clients, keeping your business safe and trustworthy.
Conclusion
Even though starting your own business can be difficult, the road is always beneficial. Before making a decision, it’s crucial to consider all the advantages and disadvantages. You have already learned about the pros and cons of owning a bounce house business.
You can minimize the administrative aspect of growing your business by integrating a bounce house rental software with your bounce house rental business. Automating the framework for your rental business with a system like RentMy will provide all of the automation you need to run and grow your inflatables rental business.
