In event rentals, the name of the game is volume. You basically want an empty warehouse all the time, right? That means you want all of your items to be out at parties simultaneously with no one and nothing left behind collecting dust.
But in reality, we know that’s not what’s really happening, right? You’ve got pieces that never get invited to the ball. No one asks them out on a date and it is time for them to start performing or they’ve got to get a move on.
Before you kick them to the curb, try these strategies (one, two, or maybe even all five) to increase the Dollar Utilization of your Inventory Items.
What’s that, you say? Don’t know what Dollar Utilization is? No problem.
It is the amount of Rental Revenue the Item has generated for you in the trailing twelve months divided by the Original Acquisition Cost (including improvements like upholstery or refinishing but not repairs between rentals).
Dollar Utilization for Individual Items in your collection, specific Categories, and your Collection as a whole is a great performance metric. Comparing this year’s numbers to last year’s can help you develop purchasing strategies, influence your liquidation plans, and impact your marketing efforts.
When you find an under-performing Item, consider one of the following five strategies for whipping it into shape.
Lower the price if you get interest but not bookings. Raise the price if you have trouble convincing clients of an Item’s value (they may be perceiving it or your brand in general as too cheap or inexpensive). Experimenting with pricing strategies may increase the Item’s utilization within your collection.
Be sure to give the Item some social media attention. If it isn’t renting like you want, feature it on Instagram, Facebook, or your other channels. Suggest different uses. Show the Item at real events. Tell what drew you to it, talk about its craftsmanship, or history. Make the piece more than just any ordinary thing by giving it a story.
Contact at least ten clients who already have events on the books. Tell them about the piece and suggest where you think they could use it. Be specific about a use and the placement. They certainly all won’t bite but you may get some good order additions out of it.
Refresh your in-use photos on your website and blog. In addition to the main image you use to showcase the piece in your online gallery, be sure to include additional inspiring images. Particularly if the piece can have more than one use, be sure to show you clients how they can use it in a variety of ways so people who aren’t as visually-oriented as you don’t have to imagine it for themselves.
If your Humdrum Settee isn’t getting the attention she deserves, consider giving her a name with more emotional sway. Use city names, movie references, flowers, or other names with romantic or emotional components to evoke feelings in your clients. Add depth to your collection just by making the names of your Items unique and interesting.
Interested in other ways to get more out of what you’ve already invested in?
Don’t miss our free Make More Margin: Finding Sustainable Success in Boutique Event Rentals On-Demand Webinar. In it, we’ll talk about how to get more out of your collection, your space, your team, your time, and your personal time. You won’t want to miss these tips, tricks, and actionable insights! When you sign up, we’ll also send you our pre-webinar PDF Guide How to Make Your Event Rental Business Sustainable for the Long Haul.