When you want to start a moonwalk business, marketing has to be at the forefront of your thoughts.  Many may disagree, but I believe the customer base you are dealing with only rarely resorts to using the big yellow book to find anything, much less party rental companies.  That’s not to say that electronic directory listings are not very useful, and many moonwalk rental companies get a lot of business from using them.  I have had several referrals for moonwalk rentals, and waterslide rentals from online directory services.  I have even received moonwalk rentals for school carnivals, and church bazaars in Houston.

I don’t currently subscribe to any paid directories, not because I don’t believe they work, but because there are so many free directories that allow me to add listings.  Look for them on the web, and you will find that you can spend hours doing nothing but listing your moonwalk rental company.

I also highly recommend the use of magnetic vehicle signs.  They are inexpensive, and can be taken off, when you are in places where you don’t feel like advertising, or where you believe they may be taken off by mischievious kids.  I also have a fair amount of success with cards left at rentals.  If you bring clean bounce houses, slides, and obstacle courses in good condition, are on time, and practice good customer service, you will find that customers are all too happy to recommend you.

Finally, I rely heavily on a customer list.  Three months before a client rented a unit the previous year, I will send an e-mail or flyer, advising of my 10 percent repeat customer discount.  This gets me plenty of rentals, and people appreciate the pro-activity.

Handouts, mailouts, and other forms of advertising are always options, but they tend to be more expensive than my preferred methods.  I have found that a properly worded web site, and directory listings, plus follow up with prior customers provides me a good growth trajectory.

Insurance for this industry is very expensive relative to the revenue generated, especially when just starting out;

Insurance is required by a number of desirable customers, such as those who are hosting their functions at parks, or on public property, and schools and churches, who often rent multiple units;

In many states, such as Texas, insurance is a requirement of the business.  You can and will be fined if the state discovers that you do not have insurance;

If your business is a sole proprietorship, as opposed to a corporation or llc, you can be personally liable to customers in the event of a lawsuit that doesn’t go your way;

Most insurance is going to require you to document the units you have available for rent, and many carriers want to see the customer rental agreement you have with customers.  If you need one of these, see moonwalkbizpro.com, or other vendors selling business software and forms.

It can be frustrating to spend such a large percentage of your incoming revenue on coverage, but without it, one claim could be devastating to your company.  Certain customers will never be viable prospects, and the state could even shut your business down.  Therefore, you have to treat insurance like any other business expense, such as lights, delivery, or employees.  Put away a piece of your rentals early in the year, and it won’t feel so painful, when you have to lay down that big premium.

As far as finding cost effective insurance, I would recommend that you have your agent shop several different carriers 90 days or more before your renewal.  I have seen swings in premium of up to a thousand dollars, for similar coverages with the same policy limits.  Its certainly worth your time.

Also, you must be scrupulously honest with your insurance carrier.  If you provide any innacurate or dishonest information, a carrier could use that as a basis to deny coverage when you need it most.  Make sure your agent has the facts straight, and when you add or sell units, make sure your carrier knows.  Finally, in the event of a claim, advise the carrier immediately, don’t talk to the customer about whose fault it is until you have spoken with counsel, since doing so could void your coverage!  Or worse, you could admit fault for something that is not legally your fault.  Delaying in reporting the claim, or taking action which increases the exposure to the insurance company could reduce, or void coverages you paid so much money for.

While I am an attorney, this blog is not intended to be used or treated as legal advice.  I am in Texas, and the laws of your jurisdiction or area could be different.  As always be sure to speak to counsel immediately if you or your business are the subject of a legal claim.

Insurance is like so many other things.  Its better to have it and not need it, than need it and not have it.

Obviously, you are purchasing inflatables! It’s time to determine the size, style, and prices of the units you are going to purchase.

Size:

The 15 x 15 size moonwalk is extremely versatile. It is heavier than the 13 x13 but can still be handled by one person. Small enough to fit in most yards but big enough to handle enough children for festivals and large events, the 15 x 15 is a good choice if you are only purchasing one bounce to begin.

If you live in a colder climate, you may want to consider an Garage or Indoor Bounce. These are smaller and lower to the ground so that they can fit in a garage. The 10 x 10 size fits in almost any small space, including some living rooms! The 10 x 13 and 10 x 15 sizes are designed to fit perfectly in 1/2 of a 2-car garage- leaving room for the party in the other half of the garage. The Indoor Bounce has multiple uses- great for rainy days and winter time, it also functions as a mini bouncy-boxing ring or a party bounce for young children all summer long. It makes an excellent addition to your regular bounces, giving you the ability to adapt to weather and other unusual setup conditions. At least one Indoor Moonwalk is highly recommended for all moonwalk rental businesses.

Style:

How do you choose from so many styles available? It’s hard to go wrong on a style unless you get something extremely specific that goes out of style next year. Classic styles such as the castle or fun house or birthday cake are best if you are only starting out with one unit. You don’t want something to “boyish” or “girly” if you only have one or two units.

Buy more specific characters as your business expands. Of course, if you really want a certain character, go for it!

Another idea is to ask a “focus group” which one they would like best. Ask kids and moms and daycare workers which one they would want. But make your own decision- if you have 50 choices, you are likely to get 50 answers!

Other Equipment

Trailer:

Yes, you can fit a single bounce in the back of a truck or van to start out. Your life will be much easier if you get a trailer if you can afford it. A 5′x8′ trailer can handle 2 or 3 15′x15′ bounces and is a good choice for your new business. A trailer will make loading, unloading and possibly even storage easier for you.

Dolly/Handtruck:

Don’t buy the cheapest handtruck you can find. You will need a commercial quality handtruck with inflatable tires. The tires are important because the inflatable kind are wider and have better traction for moving heavy equipment over lawns and gravel. The hard rubber type of tires are more likely to tear up lawns and cause you to have to struggle to get the equipment where you want it.

We highly recommend the Inflatable Mongo Mover, a hand truck specially designed for moving inflatable rides. The fenders prevent the wheels from rubbing the vinyl and the specially angled wheels take the strain off your back. A Mongo Mover is a MUST if you are buying a slide or other heavy piece of equipment.

If a Mongo Mover is out of your price range, try buying a hand truck designed for moving appliances. They come with straps conveniently attached and are designed for heavy loads.

Sandbags and Sandbag Covers:

Follow your manufacturer’s instructions on stabilizing your equipment. You will need sandbags for hard surfaces and the easiest way to connect sandbags is with sandbag covers. The minimum you will need is 4, with one on each corner. We recommend you use 8 sandbags per bounce, with 2 on each corner. It is a small price to pay in extra covers and a little extra effort when you consider how much an insurance claim may cost you in the long run. You can usually purchase sandbag covers from your manufacturer at the time you buy your equipment or you can buy them separately later.

If you don’t have sandbag covers, you can purchase duffel bags and place your sandbags inside. Secure the handle to your tiedown rope. Remember, nylon duffel bags will not last as long as vinyl sandbag covers and will need to be replaced sooner.

Tarps:

If your manufacturer does not include a tarp with your equipment purchase, you will need to purchase one. It is not a bad idea to go ahead and purchase backups as well. A tarp is very inexpensive in comparison to your equipment and you should always use one, whether you are setting up on grass or concrete. Buy the highest quality tarp you can get, whether locally or through your manufacturer. It goes a long way towards protecting your investment. We recommend you ALWAYS use a tarp- then there is no question as to whether or not you should use one for a specific setup.

On potentially rainy days, it is a good idea to leave an extra tarp with the client and ask them to deflate the ride and cover it with the tarp in the event that it starts raining. If the rain then stops, they can re-inflate the ride with no worries. If it is pouring down rain, the tarp won’t help- you are still going to have to deal with a wet, heavy unit!

Stakes:

Stakes will be used to secure your equipment on grass. Follow your manufacturer’s instructions. You will need lightweight tent spikes for securing the tarp and heavy duty stakes for securing the inflatable. We recommend that you purchase landscape spikes at your local home improvement warehouse for about .30-.50 each and find washers to fit. Get a heavy hammer or a mallet to pound them into the ground. If you use a hammer, you can use the claw end to pull the stake out later or you can purchase a claw-type tool to help you remove the stakes.

While 4 spikes are adequate, we recommend that you use 8 spikes per unit with 2 stakes on each corner secured to rope loops for maximum stability. See the Setting up a Moonwalk page for more details. Always follow your manufacturer’s recommendations on securing your unit and check to see if your insurance company has any specific requirements as well.

Extension Cords:

Purchase heavy-duty outdoor type extension cords. A good idea is to purchase one with a small LED light on the end so that you can tell if there is a problem with the power source. The ones that have a locking mechanism are great for added safety against the cord pulling out. One 50′ cord per unit should be enough; you really don’t want to extend the power any farther than 50′. It is a good idea to have a longer one just in case you need it, though.

Generator:

If you live in an area where you know you are going to be setting up a lot in areas with no power, look into costs for gas generators. As a rule of thumb, start out renting a generator when you need one until you can determine how often it will be needed and what size you will need to purchase. It is a good idea to call around and get rental rates so that you will have answers on hand when a customer asks. Plan your pricing accordingly.

Carpet Remnant:

This is a great idea. Place a large carpet remnant in front of the moonwalk, under the safety step. This gives kids a place to sit and put their shoes and it minimizes grass and dirt that get tracked into your equipment. Definitely worth the effort because it will save you a lot of time cleaning.

Cordless Vacuum:

Buy the most powerful cordless hand vac you can find, one with a hose and a crevice tool. This will help you quickly clear the moonwalk of any grass or debris before you deflate and roll it up.

Broom and Cleaning Supplies:

A smaller broom with an angled head is better than a bigger one since you are dealing with lots of crevices in the moonwalk floor. Spray Lysol and a small towel will help you to quickly clean any spots before they become permanent.

Stopwatch

A stopwatch is a nice touch to offer your clients. They can play timed games with it or time turns if there are a lot of children at the event. If you are attending the rental, you will want a stopwatch to ensure that the length of the turns are fair.

Whistle

If you are attending an event, take a whistle to get the attention of the riders. You don’t know their names and often there is a lot of noise to overcome. This is really a safety issue as you will often need to get the attention of a rider who is misbehaving before an accident happens.

Wind Gauge

Inflatable rides should not be operated in winds that exceed 25 MPH so it doesn’t hurt to have a wind gauge on hand to help you or your customers make that call. These run about $125-$150 in camping/sporting goods stores. Nice to have but not essential.

Bubble Machine

OK, so you don’t NEED a Bubble Machine, but they are a lot of fun and add to the rental fees for almost no work. Don’t forget to stock up on bubble solution!

Customer’s Perspective

My customers who have tried this approach almost uniformly report that  their rentals had major problems, from dirty units, or units with major holes or trashy patches, to guys who didn’t show up at all.  One lady said the day before her daughter’s party they guy called her and tried to start a bidding war, because someone else had offered an extra ten dollars for the same unit.

From a customer’s perspective, one has to reasonably assume that you get what you pay for, however, I am routinely confronted with the question, “Why should I rent with you, when I can get it from x for y dollars.”  My answer to the question usually varies, but covers a number of key distinctions, which I think are important for any moonwalk business owner to  consider.  It looks something like this:

• My units are clean and in good condition, a process which, when coupled with delivery, will cost more than that guy is charging you for the enti.re rental, so ask yourself how he can do it
• I have never, not once, missed or failed to show up for a function.  If a unit has to be pulled out of service or is damaged and can’t be fixed in time, my customer gets a better unit until he or she is satisfied for the same price, does your craigslist guy (who probably has only one unit), do that?
• I will not be late, if I am, and it is the fault of anyone but the customer, the rental is free, no matter what.  Does your craigslist guy do that?

Moonwalk Business Perspective

While some have a much stronger opinion.  I don’t think the craigslist 50 or 60 dollar renters are really a threat to our industry.  I think the burden is on us to show our customers value.  In most cases, my customer’s enjoy longer rentals, will certainly get higher quality products, and service will not even be close.  My customers are consistently repeat customers and that is how this business is grown.  I don’t see that kind of loyalty in the customer’s of craigslisters, because they come to me – and stay!  Frankly, if a customer does not value these differences, that person is not a customer I particularly want.  It may be controversial, but there is a such thing as a customer, that is toxic to a business.  Every rental company owner who has dealt with the “cost is all that matters,” customer can report an experience where despite best efforts the customer was demanding, and unsatisfiable.  I firmly believe that if a company is offering a fair product and service, at a reasonable price in this industry, there is plenty of room to grow a competitive profitable business.

Craigslister Perspective

While they may not read this.  I do think craigslisters ought to consider whether selling that way is in their best interests as well.  Obviously, there are folks having a hard time now, and when you are talking about bread on the table, anything is better than a unit sitting in the garage, but I firmly believe, business is not hard to come by given all of the free advertising available, about which I will blog here.  I also feel like these guys are setting themselves up for failure.  First, they can’t make much profit, which could be turned toward expanding and improving their businesses.  Second, the fact that they are cheaper doesn’t really impact customer expectations, and if there are shoddy or dirty units involved, they will not be asked back.  If they are using good units, they will not be able to sustain themselves given the wear and tear and the amount generated.

Conclusion

In short, a properly run business is not endangered buy these guys, though they may be a danger to themselves.  If you have questions, ask.  If you would like to learn more, or improve your own business, consider looking into an inexpensive documentation package, such as Moonwalk Biz Pro, a product I have created to help Party Rental Entreprenuers realize their potential.