The costume rental business is part of a continuously flourishing industry which presents many opportunities for growth. The reason for this is simple.
There will always be a need to rent out clothing items since people don’t want to purchase costumes that they will only wear once.
Therefore, to save money, renting is a better option. This sort of business allows customers to rent the costumes for as many or as few days as required. Not only is a costume rental business an exciting opportunity but it also helps yield a significant additional yearly income.
What is a Costume Rental Business?
A costume rental business serves many different companies, ranging from the AV sector to production houses as well. Such a business can have retail outlets or operate online, or both.
However, deciding between the two depends on customer loyalty. Running a costume rental business online without any customer loyalty can be quite tough and will only be beneficial if the customers are loyal.
On the other hand, a retail store offers customers an advantage over the online store. In-person, customers have a chance to check the materials or sizes with ease if they require customized costumes.
How does this business become profitable? After a costume has been rented out five or six times, any revenue generated from further renting of the costume is almost entirely profit.
For better understanding, let’s take a look at some of the features a costume rental business needs to flourish.
1. Rental Rules
Perhaps the most important part of any business is ensuring that there are rules in place for proper functioning. The same goes for the costume rental businesses, where rules need to be designed as soon as can be.
Different rules and guidelines are required for costume rentals, such as seasonal pricing and what the different customer categories are for price adjustments.
Once in place, the rules will automatically be applied when an order is placed that meets all the conditions.
2. Vendor sourcing
Managing vendors plays an important role in any rental business, especially in costume rentals where you can’t stay in business without reliable vendors.
Vendors can be efficiently managed by evaluating the benefit they provide to the business.
To do this, focus on building valuable relationships with them to obtain the best quality products, all the while managing costs as well.
3. Access to data anywhere
By storing all the information on a cloud database, the owner and their team can easily access it from any device and any place.
This makes it possible to check the order details and stay up to date with costume collections while on the go. No longer will you have to rush to the office to deal with an urgent rental crisis.
Having snapshots of important data available offline allows you to stay in touch with work even when away from the office.
4. Availability-based ordering
For a rental business to work, there should be enough stock available when the customer wants to place an order. If the costume isn’t available, then the customer shouldn’t be able to place an order for it at all.
To make this happen, availability-based ordering is ideal. This system of ordering aligns order scheduling with item availability so that an order is only scheduled when the costume becomes available, and not before that.
Sub-renting allows costume rental businesses to smoothly deal with the unavailability of any costume and fulfill impromptu customer requests. The simple solution is to sub-rent from third parties to rent it forward to customers.
A sub-renting feature will be of utmost importance during peak seasons, helping to avoid overbooking costumes or missing out on potential orders.
6. Late return fee
Your business could lose orders if costumes are returned late. To encourage customers to return items on time, charge a late return fee.
Besides the benefit of encouraging on-time payments, charging a late return fee also has other benefits, such as the fact that it establishes you as a serious professional.
7. Bookings and reservations
Customers might want to book costumes beforehand to ensure that they don’t run out when needed. To make this happen on your end, you would need to reserve items so that they are available when required.
An asset rental management platform can really help you manage all your bookings and reservations. By updating costume availability, customers can only order items that haven’t been booked so all booking conflicts can be avoided.
4 ways you can manage a Costume Rental Business successfully
1. Learn what your customer wants
One of the key responsibilities of running a costume rental business is knowing your target market. In order to purchase inventory, knowing what your customers are looking for is important.
Start with an in-depth study of your target market along with the cultural and social dynamics of the place the retail store is located. For an online costume rental business, tracking delivery locations is extremely vital.
Research current clothing trends periodically. Managing a costume rental business successfully requires keeping tabs on the changing trends. This way, you can also keep up with the changing customer demands.
Moreover, customers need to be made a priority. To do so, customized discounts or seasonal deals can be offered. This helps attract more customers as they are more inclined to make repeat purchases.
Lastly, bundles can be created of items that are frequently rented out together. Couple promotional discounts with these bundles to make renting convenient for your customers.
Read More: 25 Key Rental Business Lessons for Owners
2. Create an online store
224.1 million people shop online in America. This is reason enough to show why having a prominent online presence is vital. An online store can magnify your target market and significantly lower costs.
Almost every successful business has an e-commerce website. This makes it all the more critical to have an online presence in order to compete with competitors.
In order to make the store successful, you need to make sure the website shows all the required information, such as business hours, contact information, pricing, product details, and shipping terms.
Websites should have catchy illustrations and be user-friendly. All this can be done by having reliable costume rental software to store critical information.
3. Keep track of rented articles
If you have a large inventory of costumes and other trackable articles, then rental management software will enable you to stay on top of your business.
It would show you which articles are in demand by gathering data on how much an item is selling and when it needs to be stocked. It would also provide information on which items are no longer profitable so you can down-size accordingly.
These factors need to be considered so that idle costumes can be discarded and profitable sources can be utilized.
Moreover, tracking items is vital for transparency. Damage to a certain article done during delivery can also be recorded and tracked so that the damage is reverted as soon as possible.
4. Automate daily business procedures
Invoice management can become difficult if you have too many orders and invoices that need to be managed.
In this regard, rental software enables companies to design different invoices according to the department or customer. You can even make customized invoice templates.
Automating this process allows you to create and send out invoices without any delay, helping you save vital time.
Moreover, automated notifications and alerts help remind customers of the due date. This enables you to avoid missing out customers and swiftly responding to client requests.
Time to start running your business smoothly
The most important aspect of your costume rental business is, of course, the costumes themselves. The costumes need proper maintenance and tracking and need to be returned on time.
Without a substantial stock of costumes, your business will cease to exist. To make sure nothing of that sort happens, the features and methods above will help.
A costume rental business has the capacity to break-even in the first few years if managed properly. Use our tips to manage your company and ensure steady running and profits!
We are a cloud based costume rental system that offers costume rental businesses seamless rental management. It also comes with a host of other features like asset tracking, maintenance management, a customized webstore, and much more. Try us out today!