Some time ago I published a post referring to businesses related to renting something and I still believe that this kind of business can leave very good returns.
You would be surprised by the amount of things that exist on the Internet available for rent. In fact, people search for items for rent for three main reasons:
- This is very convenient for them when they only need the item temporarily for a few hours or for a short period of time. Reason why they do not want to invest in acquiring said item for their property.
- They want to try the item before deciding to buy it.
- Many people choose to wear items for a time and then replace them with more updated or better designs.
Either way, the truth is that a rental business can be a very profitable venture, provided it is built and operated professionally.
On this occasion I am going to share with you a very interesting and rarely explored related business idea and it is the rental of graduation caps and gowns.
What is the business idea?
There are many edges from which you can conceptualize this business. Let’s start by thinking about all the university graduates from the different faculties who graduate year after year from the different universities in your city.
These people usually rent their cap and gown for that important day. This outfit is usually an extremely important piece of clothing that no one buys for their possession and whose rent is a very convenient option because it is delivered clean, ironed and in perfect condition for immediate use.
In addition to this, in many places it is customary for the university graduate to be accompanied in this important act of completion of studies by a Godfather who is usually a professional who will also need to wear a representative gown of his faculty and university.
This means that for each graduate there is usually also a sponsor requesting their clothing and who becomes another client for your venture.
In fact, although it is true that in many cases universities are usually the main competitors since they have the gowns, however their weakness is that they do not always offer a fast and professional service since it is not their main business role. Weakness that you can take advantage of very well with a fast and professional service.
Keys to success for cap and gown rental
The competitive strategy for this business can be summarized in the following aspects:
Inventory availability. Make a variety of robes with identifying colors of the different universities and faculties since each one is usually distinguished by different colors and styles in some cases.
Quality in delivery. Keep the garments in perfect condition for immediate use. In other words, they are always clean, ironed and with the accessories and colors indicated for each case.
Professionalism and advice for the client. In this sense, it is extremely important that you have a very clear and efficient list of what are the distinctive of togas in each case since people will sometimes request the service without being very clear about what they should ask for.
Home delivery and return. This is usually a key element since people, both graduates and godparents, tend to prioritize everything related to the graduation process and what they least want is to complicate their lives with the outfits. Hence, sending them to their homes and then removing them from their home makes the experience very pleasant.
Target market
As I have mentioned above, the main market is usually university graduates at different levels: professors, bachelor’s, master’s and doctoral degrees. It must be ensured in each case that the university degree of the person in question is very clear in order to provide them with their appropriate caps and gowns in colors and sizes.
Additionally, the other university authorities who usually officiate graduation ceremonies are also potential clients for your business.
And if you want to expand even more, in primary and secondary schools it is already symbolically customary to officiate graduation ceremonies for the little ones and therefore this segment can also be considered as a potential client with the same operating procedures except that the requirement of colors is usually less critical.
Initial investment
The main investment to consider for setting up this business, in addition to the usual opening and legalization expenses, has to do with making the garments since you will need to have a good inventory of caps and gowns specifically designed for the different faculties and universities in different sizes.
In fact, it is best to start with a few initial units thinking about individual income and gradually and as the business grows, have an inventory of units sufficient to supply a complete graduating class.
As you can imagine, closely related to this should be considered the issue of storage space and laundry machines that allow you to always deliver the pieces in perfect condition.
All without neglecting the operational and marketing issues: delivery and reception, courier, laundry and administrative personnel.
As you can see, this is usually a beautiful undertaking, with a medium degree of difficulty, easy to operate but above all very profitable.
Price strategy
As in any business, the price can be set depending on the volume of garments to be rented, since an individual income that can round up $ 30 dollars for 48 hours is not the same to a faculty that could request a complete set of garments for everyone your graduates and for whom you could work a lower price per volume.
You should consider operating issues, laundry, marketing and deliveries within your costs.
Additionally, you should consider within your price catalog what is related to penalties for damage or loss of clothing which may occur. A good way to protect yourself from this can also be to ask the client at the time of renting a deposit (returnable) that covers any unforeseen event.
Are you ready to start your own cap and gown rental business?
