25. June 2010 19:13
A few posts back we talked about some ideas to improve operating efficiencies in the tent rental business. Some additional thoughts have come to mind that those of us in the business may find helpful.
When considering ways to improve efficiencies and streamline operations there are a number of things that can be done to reduce costs and improve operating efficiences. The following are but a few ideas to help better manage operating expenses and improve bottom-line performance.
1. Purchase bulk tent tubing – Consider purchasing frame tent tubing in bulk. Your staff can easily cut and drill tent tubing as needed. It is not only cheaper to purchase tent tubing in bulk; you’ll find that it represents an effective approach to maintaining a more flexible inventory.
2. Purchase frame tent fitting in bulk – This too will help to keep inventory costs down and deliver a more flexible inventory.
3. Purchase tops for short life cycles – On the smaller frame tents, consider taking an approach of short life cycles on the tops. You can purchase a lower quality top, realize rental income off it for a year and half and then sell the top as a complete tent with tubing and fittings. If timed correctly, you can yield the original cost back in the sale alone, to say nothing of the rental income earned off the tent during the year and a half of use. You can have a larger inventory of these smaller size tops (normally the bread and butter of many operations) to keep the majority of top inventory looking new. Following this strategy, one can afford to pay less attention to taking meticulous care of the top which tends to drive up the cost of caring for inventory.
4. Maintenance of small tops – Contrary to popular belief, you can save considerable labor when striking a small top to just drop it in the mud, the labor savings alone in shortening the time in the field and then throwing the top in the washer when returning to the warehouse will make for a net gain.
5. Managing large top inventory – Larger tops on the other hand are another matter, especially pole tents. The resale market for larger tops is not very good. Additionally, larger tops are more susceptible to wind and having a large top that is able to stand up to difficult weather conditions is a top that you’ll want to keep in inventory.
6. Market your tent inventory - Let it be known in your community that your business has tents for sale. Typically, churches, Boy Scouts and other non-profit agencies are great prospective outlets for small used tops.
You too may have some thoughts on the subject of improving operating efficiencies in the tent rental business. If so, let us hear from you. The more exchange of ideas that we have the better that we all will be in profitably operating our businesses, particularly in these tough economic times. Visit our website to check out our whitepapers or view some videos that may help to further stimulate your thoughts.