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Pros and Cons of Owning a Bounce House Business

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pros and cons of a bounce house rental business

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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 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. 

Profitable

The cost of renting a bounce house varies depending on the region and the goods and services provided, but smaller units range from $80 to $250, while larger inflatables earn an average of $125 for a four-hour rental. Combo bouncers and those with wet/dry options earn an average of $250 per rental (or more). 

According to market analysis, 

“There are 1.5 rentals on average per week, which works out to $188 per week for each bounce house. Your company will make roughly $750 each week if you invest in 4 bounce houses.”

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

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.

Simple Business Model

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 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.

Summarized Table: Pros and Cons of Owning a Bounce House Business

Here is a table that will highlight the key factors and major pros and cons of the bounce house rental business.

Pros 

Cons 

The bounce house rental business is much more profitable than other businesses

You may get a low margin 

You can start a bounce house rental business with limited time investment. 

Chances to cause an accident

You just need a little overhead to launch a bounce house rental business. 

You need to hire a professional to supervise your business 

You can build your bounce house rental business in a local community

You may face various physical challenges 

Having a physical storefront will be beneficial 

Equipment damages 

You can conduct the overall operation through face-to-face interaction

It will be difficult to choose the right suppliers 

It ensures a simple business model

There is high employee turnover 

It ensures amazing perks and discounts. 

You may need to pay a huge amount of sales taxes. 

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.

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