In this edition of our blog how to run a successful kayak and canoe rental business we look at the costs and expenses that are involved in running such a company and the potential profits you can expect.
Depending on the size and type of kayak or canoe you hire the general hourly rate is around $25 / $35 per boat per hour. Daily rates vary from between $40 and $60 per boat. Many rental companies offer discounts for weekly hire or corporate rates for good customers or large firms.
Fixed expenses are insurances, fees, rent, wages and utilities, on top of this you may have to pay fees for launching your boats and expenses for delivering them by trailer.
Varied expenses are repairs for equipment and replacing old or damaged boats.
What Profit Can You Expect
Like any rental business your turnover and profit is governed directly on how many craft you rent out. Perhaps you own ten kayaks but only rent five out per day, this may not be enough to sustain a business.
Your options are to increase the hire cost per boat or to increase the volume of rentals. The latter is far the best way to get your business more profitable as you have extra capacity in terms of number of boats so there is no extra expense.
Increasing your profits is the main thing, offer something extra that other competitors do not. This could be guided tours or discount for groups, perhaps even kayak and canoe handling courses. Perhaps you want to expand your offering and include different crafts such as stand-up paddle boards, jet skis, or boogie boards, or also rent associated equipment such as camping gear, fishing equipment etc.
If your premises are large perhaps rent out space for other people’s crafts or offer a repair service for their boats and equipment. Remember sometimes the more strings you have to your bow the more contented customers you will have.
Build Your Business Slowly
All the above growth areas can be looked at once you have your business up and running and firmly established. Cement your business identity and market its core values and offerings before you decide to diversify.
Trying to market a confused message is often the road to disaster as you are not sending a clear message out to the market what your business is all about. Make certain that the market knows that first and foremost you are a kayak and canoe rental company, everything else can either be bolted on to that or marketed under another banner, never send out confusing messages.
Finally, it is important that you enjoy what you are doing, if you are not getting the best out of what you are doing it will show to your customers.
Also, what is the point of doing something you do not like and enjoy?
If you follow the tips and advice offered in this blog they will set you up to follow the correct path of building a successful and interesting business that you can enjoy and make a living from.