Banner Rentals

[The Phranc]

Back story:

A few days ago a lady called looking for our smallest and cheapest banner so she could have one for her sons birth day party. Nothing we offered was cheap enough and a 2x4 would have been more than what she wanted to spend but would have if we had it in stock. Naturally she wanted it that day, a Friday and couldn't wait for us to get one the next day, a day we aren't typically open. After some talking to work out a way to get her what she wanted I asked if she would be willing to rent on. Lady jumped on it like a wolf pack on a lame mule deer. And will be coming back in a month for her other child. She also handed out a bunch of business cards and spread the company to others

So now it looks like we will be adding in banner rentals to our line of offerings. I made it so a number and name can be added and removed. Going price is $10 a day (Sundays don't count) and $50 for a full week. All I made was the Birthday banner and a grand opening banner. After 2 rentals the banner if paid for and anything after that is profit above vinyl and labour, hardly bank breaking costs.

Am I wrong in thinking that these one time use banners would be accepted in a broader clientele with the tight economy? Any one else do this? Good Idea? Any tips? $10 to little? Opinions? Snide remarks?

 

[R08]

I've given that sort of thing a lot of thought but in the end it's too little money to be bothered with. $10 for a banner rental is like an annoyance really.
Selling 1 banner makes up for many rentals.

imho.

 

[Craig Sjoquist]

There several companies that sell just what you trying to rent cheap cheap cheap.
You may want to look into pre-made banners, other such to stock items for sales.
If your area is lacking maybe you found a income for little investment.

 

[jiarby]

how much time do you spend putzing with the order to make $10?

Send the $10 jobs packing and focus on getting $xxx jobs.

 

[Billct2]

The time to take the order, change the date, get payment and then take the banner back is worth more than $10.
And unless you have a contract with credit card back up the first time someone doen't bring one back or brings it back damaged
you out any money you did make.

 

[onthego signguy]

If you are not making money doing something else then money in is money in. I would not spend more then 15 minutes and have a 2 day minimum, I hate doing anything for less then 20 bucks. I do sell a sticker for 10 but my cost of material is so low it is not nice to talk about it and 5 minutes time heheheeeee. I think if you are doing 5 a day you could be on to something, no telling where it could go. Applause for thinking out of the box. In hard times it takes drastic steps to survive!

 

[The Phranc]

5 minutes to draft, cut and apply vinyl and remove it later.

All our high dollar jobs are in neon as we are primarily a neon shop. Repeatable $10 jobs for minimal effort sounds like a good deal to me. It also opens up a niche that others in the area don't cater to.

Maybe its just me but getting a quick hassle free $10 job as opposed to no job from a cold call on the phone is the way to make money.

 

[The Phranc]

The time to take the order, change the date, get payment and then take the banner back is worth more than $10.
And unless you have a contract with credit card back up the first time someone doen't bring one back or brings it back damaged
you out any money you did make.

We don't take credit. Cash or check only. Most of our dealings are in company checks so setting up a credit account would not be cost effective. There a $30 deposit and they get back $19.50. That covers all the material costs should things go awry.

 

[Vinylman]

This is the STUPIDEST idea I have observed this week.:iamwithstupid
Congratulations!:U Rock:

 

[royster13]

If you have time to sell a 10.00 order you have time to do some marketing work.....Pick up the phone and call potential new clients....Or better yet, call recent clients and thank them for their order and ask them if they need anything else...

 

[HulkSmash]

10 dollar for banner rentals......? You don't take credit cards?

um.

 

[GoodPeopleFlags]

I tried that idea about 15 years ago. Once it was returned damaged and another time it wasn't returned at all. More time and trouble than it's worth, I promise.

 

[The Phranc]

10 dollar for banner rentals......? You don't take credit cards?

um.

Um what?

 

[jiarby]

Get a $150 deposit... cash only.
Charge $30 a day

For $10 you are wasting your time. A money maker? What... how many a week are you going to rent?

This is a better idea...

Go find the local party rental store. SELL them a couple banners... Happy Birthday, Welcome Home, Congratulations, We Missed You, etc...
THEY rent the banners... not YOU.

 

[HulkSmash]

Also - Isnt everyone changing to LED? Is NEON still a thing people get?
Also if you want to make a profit doing the whole banner rental thing. Try this -

Buy one of these

They were like 28 bucks at Octs ISA show. rent them for 30-40 a day plus the cost of a cheap 10 oz basic banner. They're 8 feet by 3 feet and come with a carrying case.

I know a guy who does this and he makes a mint.

 

[The Phranc]

Get a $150 deposit... cash only.
Charge $30 a day

For $10 you are wasting your time. A money maker? What... how many a week are you going to rent?

This is a better idea...

Go find the local party rental store. SELL them a couple banners... Happy Birthday, Welcome Home, Congratulations, We Missed You, etc...
THEY rent the banners... not YOU.

If people aren't going to buy one for $45 why would they rent one for $30? Why would I whole sale when I can rent them my self? Selling to some one else doesn't get me returning profits. It doesn't matter is I rent one a month if its paying for it self after 2 rentals.

No offense but its people like you who leave people like this woman with nothing. If I can offer them something and take the business you turn away because they don't want to spend exorbitant amounts of a single time use sign that looks like good business to me.

$10 may be too low but its still better than zero. I still don't see how making money is wasting time.It's only a waste if you are losing money. $10 covers everything and then some.

I see attitudes like yours a lot in the other companies around here. I also see them losing bids to us because we come in much lower. Sometimes thousands of dollars lower for a set of channel letters.

 

[Letterbox Mike]

Phranc, what you're failing to take into consideration is the overhead cost of this job. Yeah, sure you've got 5 minutes in actually weeding the vinyl and applying it to the banner, what you're forgetting about, and what's critical, is the administration time. I can guarantee you will have way more than 5 minutes in the job once you talk to the customer, explain the process, BS with them for a couple minutes, figure out what they want, write the order up, produce it, call them to let them know it's ready, BS with them for a few more minutes when they come pick it up, write up the bill, take the money, deposit the money, and BS with them for a few more minutes when they return the banner (if they return the banner). You'll be lucky to have less than 45 minutes in the job once it's all said and done. Honestly, step back and really figure how much of your time you will have wrapped up in it, it will be a lot more than the 5-10 minutes you're betting on. I don't know what your hourly rate is, but if you're working for $10 for 45 minutes worth of work, that would mean your rate is about $14 per hour. Subtract all of your overhead and fixed operating costs from that $14 and tell me if you are making any money or if you just paid your customer.

 

[HulkSmash]

If people aren't going to buy one for $45 why would they rent one for $30? Why would I whole sale when I can rent them my self? Selling to some one else doesn't get me returning profits. It doesn't matter is I rent one a month if its paying for it self after 2 rentals.

No offense but its people like you who leave people like this woman with nothing. If I can offer them something and take the business you turn away because they don't want to spend exorbitant amounts of a single time use sign that looks like good business to me.

$10 may be too low but its still better than zero. I still don't see how making money is wasting time.It's only a waste if you are losing money. $10 covers everything and then some.

I see attitudes like yours a lot in the other companies around here. I also see them losing bids to us because we come in much lower. Sometimes thousands of dollars lower for a set of channel letters.

You might be the town low baller, but those other companies prob. Make much more money.

Theoretically speaking -

For example. They get 8 jobs a month. 5k each. 40k.
you get 12 jobs a month 2k each. 24k.

both your over heads about the same. lets say it's about 600 per job.

See where i'm getting at?

I get outbid all the time, but that doesn't stop me from being the best and highest quality sign and wrap shop in the area.

I might quote a job for 3,000. And the guy down the road will do it for 2200. But i still get the job because of the reputation and quality we provide.

Last thing you want to be known as it the towns cheapest place.

just my honest opinion.

 

[The Phranc]

Also - Isnt everyone changing to LED? Is NEON still a thing people get?
Also if you want to make a profit doing the whole banner rental thing. Try this -

Buy one of these

They were like 28 bucks at Octs ISA show. rent them for 30-40 a day plus the cost of a cheap 10 oz basic banner. They're 8 feet by 3 feet and come with a carrying case.

I know a guy who does this and he makes a mint.

The LED hype is starting to die down. LEDs just don't offer the amount of light a neon unit can. And you can't do exposed with LED even though places like Sloan have tried. There is also a lot in the way of repairs to existing neon. We have a job refurbishing an older neon sign for 1/3 the price every one else wants to retrofit LEDs in. Lots of blowers are gone and lots of shops have stopped doing it. But when you look around at LED signs after a while when they start going out and you have hot spots it just doesn't look good. Everything has its place and neon is simply a better fit than LED in some places. Price is about the same when you compare neon to primium LED in liniar feet. Electrical savings aren't that much so the "green" factor becomes moot. Even cold cathode is making a come back after people noticed for the colour temp and light output of LEDs just weren't as good.

I like that frame system.

 

[The Phranc]

You might be the town low baller, but those other companies prob. Make much more money.

Theoretically speaking -

For example. They get 8 jobs a month. 5k each. 40k.
you get 12 jobs a month 2k each. 24k.

both your over heads about the same. lets say it's about 600 per job.

See where i'm getting at?

I get outbid all the time, but that doesn't stop me from being the best and highest quality sign and wrap shop in the area.

I might quote a job for 3,000. And the guy down the road will do it for 2200. But i still get the job because of the reputation and quality we provide.

Last thing you want to be known as it the towns cheapest place.

just my honest opinion.

There are neon guys cheaper than us and they have the piss poor rep. You know the guy who operates out of his house with a raggedy bucket truck and sticks old transformers in then charges for a brand new one. We go for quality at a reasonable price. We just don't markup at ridiculous levels. Some of the other shops are hurting. They can't get business because they overcharge and no one wants to spend more than they have to. We've been in business about a year and are running in the positive side of cash flow. Granted most of what we do is wholesale. The banner thing is just a way to get into something else.

It looks like an opening and if it doesn't pan out it's not like there is a whole lot invested. It is looking like $10 a day may be too low.