Which marquees give the greatest return on investment?

A recent email exchange with someone in the industry annoyed me a little bit so I thought I’d explain on here -writing a blog is a form of therapy after all 🙂

 

For those who don’t realise there’s basically three types of marquee appropriate for marquee hire companies to use:

  • Traditional canvas marquees
  • Aluminium frame clearspan marquees
  • Steel pipe frame clearspan marquees (like our DIY marquees)

There’s other gazebos, pop-ups and party tents available but none of them are really suited to the hire industry.

 

-Neither of us like traditional canvas marquees. They have their place for some companies but neither of us wanted to get involved with them.

-Both of us like aluminium frame structures, no argument there the 9m & 12m wide stuff is very impressive.

-But he’s missing a trick by not using steep pipe marquees for his 6m wide stock.

 

When I ran our hire company we had 6m, 9m and 12m wide marquees. 6m wide steel pipe marquees are the most lucrative, offering the best return on investment (ROI) of any of the 3 sizes.

In fact about the only thing we had that offered a better ROI was fairy lights (buy for £30, hire out for £30).

 

So for all you entrepreneurs out there who don’t suffer from marquee snobbery, here’s some figures:

 

 

6m x 12m DIY Marquee

6m x 12m Aluminium frame marquee

Cost new (with linings)

£1350

Approx £8500

Expected rental (varies greatly with area)

£600+

£600+

Expected life span in the hire industry

Marquee: 2-4 years

Linings: 4-5 years

Windows 2-3 years

Linings: 4-5 years

PVC 5 years

Metalwork 20 years

 


 

I think it’s reasonable to assume:

-you have £8500 to spend

-you rent out a marquee for on average 20 weekends a year

-your profit is 50%

 

 

DIY Marquees

Aluminium frame marquee

Initial outlay

-£8,100 (6 lined marquees)

-£8,500 (1 lined marquee)

Return from 2 years hiring

£72,000 (6*2*20*£300)

£12,000 (2*20*£300)

Profit after 2 years

£63,900

£3,500

 

 

 

Replacement stock

-£5,100 (replace 6 marquees)

-£400 (replace 4 windows)

Return from further 2 years hiring

£72,000

£12,000

Profit after 4 years

£130,800

£15,100

 

£130,800 vs £15,100!! I really don’t see there’s any argument.

 

As anyone will recognise this is a simplified version of a business. You can’t rely on getting 20 bookings all paying full price if you’re starting up a new company, but then that’s the case no matter which style of marquee you use.

This doesn’t take in to consideration extras like flooring, lighting, furniture etc which are all lucrative in their own right –a lot of companies refuse to do an empty marquee. Surely having 6 marquees gives you greater opportunity to make money from extras than having one marquee?

 

If you’re starting a business or replenishing your 6m wide stock buying DIY Marquees gives you the best return on investment available.

 

I’ve tried to state the facts and figures in an unbiased manner, I just think there’s a few people out there who need to remember why we’re in this business -putting food on your children’s plate/putting beer in your pint glass, whatever’s your motivation.

 

Thanks for reading, I hope I’ve given some people something to think about.

 

Spencer.

Comments are closed.

© 2006-17 DIY Marquees
DIY Marquees is a sales trading division
of C & D King Ltd (est 1983),
Unit 15, Havenbury Estate,
Station Rd,
Dorking,
RH4 1ES
(Sat-navs use RH4 1HF)
Tel: 01306 876767
The 'DIY Marquees' mark is a registered trade mark of C & D King Ltd

*The largest Selection of fixed size marquees in the UK. Excluding modular and folding tents. Research taken on 21/3/16.

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