Short Term Rentals or Be Careful What You Wish For
Posted on October 23rd, 2007 in General, Grow Your Sales |
After being in the Interiorscape business for a few years, ‘lots of ’scapers look around for additional services they can offer. And, sure as shootin’, someone brings up the idea of doing short term rental work. "C’mon, they’ll say, How hard can it be? We have lot of plants just sitting around, lots of used containers, we’ve got a van, so how hard can it be?" Ah, the answer is hard, very hard if you aren’t in the right place and don’t have the right stuff.
You’ve Got to Have a Foundation
It takes more than a few extra plants and containers to run a successful event rental business. First, there has to be a market. Are you already providing plants to your local Convention Center? For Hotels in your market? The availability of potential clients is a key ingredient for this business. Are these entities already working with another vendor? Can you get some of that work.? A frank and exploratory discussion with the key decision makers is important here.
Where to Put Stuff
Having a warehouse, greenhouse or other facility is a must for this business as is the on hand plant and container inventory. You do not want to be ordering new stuff for your short time rental jobs unless they have already been out on a job or are programmed to go that route. No new costs should be your motto.
Timing
The Short Term Rental/Special Event Business is 180 degrees opposite of the Interiorplantscaping business. It is almost always weekend work so if your employees or you do not want to give up weekends Holidays and the like, fuhgeddahbahdit.
Standardize
Unless you are very large, you cannot be all things to all people in this business. You have to control the types of Plants, their sizes, and the sizes and colors of the Containers to make profit dollars. The greater the choices, the customization, the greater the headaches and potentials for errors. Trees (14"-17" Ficus Standards, 10"-21" Palms, Ferns in 10" Baskets, a mix of 10" and 14" 3-4′ Green Foliage plus orchids, bromeliads and mums are the standards and should make up 80% of what you provide. Set standardized pricing as well and have printed out so clients have something to reference.
Pricing
First you need to develop a Price List. Start by collecting price lists from all the other companies doing this work in your area. Most will go by height and Container A, B, or C. Add to this number a flat fee for delivery and pickup. See the various nuances of the other Pricing. Once you have a Price List, don’t forget to list Delivery and Set Up charges, taxes, additional fees for longer than usual time frames, Credit Card information,. Check out other vendors in your area and see what they are charging. Get in touch with a vendor who rents table linens, silverware and crystal and see if you can’t trade leads and partner. In fact, see who else can provide components and take some of the work off of your shoulders. For example: we started doing short term rentals because I went to a seminar and someone said we should do this. Note, we shouldn’t have but, heck the seminar cost me 250 bucks. The decision to do short term jobs cost me thousands. Anyway, after a time the jobs were too few, too low a profit and a headache. I asked my local wholesale foliage guy if he ever did short term stuff. He said he did. So, I got a list of his prices and the foliage and containers available from him, marked up the whole shebang by 35%, sold jobs and had him install and remove them but I sent the client a bill. Thirty-five percent for placing a phone call. Not bad.
Whom You Are Dealing With
There are two different decision makers you might deal with in this line of business. First is the General Public, the Charity Group Committee, the Mothers of the Bride. Run like the wind when confronted by a member of this group. They are difficult, demanding, rude, time consuming and cheap. Need I say more? The Second Group is that of Party and Meeting Design Professionals and Planners. They’ve been to the Rodeo before. They act as a buffer between you and the end client and they are most often your best friend. They know what it takes, what they want, and what it usually costs. They appreciate your efforts. If you are going to do this work, set up meetings with the key ones in your area and develop ongoing relationships.
Lastly
If you are going to get into this area, you will need a web site or web page that specifically deals with it. You will also want to develop letters that are aimed at each different targets or group complete with an easy to use order form. Note: As you do work, keep good records of time, product, vehicle costs and so on. Did you make any money? Enough to give up a Saturday? Look for ways to improve or make the decision to go on to other ideas, don’t keep doing stuff that isn’t fun and profitable. Life is too short.
Some rental companies find it is easier to bury the delivery and set up fees in with the rental price for plant and container. And, on your price list work with plants by height not grow pot size.
Instruct all personnel that answers the phone in order taking, answering questions and scheduling.
Good Luck.
