How competitive is the bounce house market? It really depends on your location. The San Diego market may be perfect for some. The weather is beautiful and people there seem to stay active. What if you compare San Diego to the Michigan market? You will definitely find some differences.
First thing, the weather is gorgeous in San Diego! We personally love it. You can expect a yearly temperature around 64 degrees. Compare that to Michigan’s 49! Precipitation variations are also important. Planning a party in San Diego is a little less stressful than Michigan. You never know what the weather will be like in Michigan. Snow, rain, tornado’s and rainbows can all happen in the same day in MI. Doesn’t tornado rainbow sound like an ice cream flavor? That was the first thing I thought of! Anyway, the San Diego bounce house market is more reliable. That’s what I’m trying to get at!
The other difference you will see between the markets is the price per water slide rentals. Since San Diego offers year round bounce house rentals, competition is higher. The more businesses providing rentals, the bigger the price wars. However, the price war game hurts everyone! When businesses continuously lower prices to beat the other competitor, the owner must cut costs. Some businesses will cut insurance on bounce houses, some might not be able to add inventory, others will cut employees and some might go out of business. This might sound good to the customer, but sometimes going with the cheapest business will end up causing headaches! We have heard MANY stories of people going with the cheapest business and wishing that paid a little more for someone else!
Some businesses are fine with the lower revenue. If a business can operate profitably while providing value prices, congratulations! This is especially beneficial in the CA bounce house market. San Diego owners can experience more year round rentals. I’m not saying Michigan owners close shop in the cold months. It’s just more consistent in the San Diego bounce house environment. Michigan prices do seem to be higher though. Will it stay that way or will the rising interest in owning a bounce house business cause a price war?
When deciding which market to go into, think about the advantages and disadvantages. Of course the biggest factor is your willing to move. If this is a part time business for you, the clear choice will be you local market. Decisions for the renters include which business to go with. The cheapest price may seem like the best until it is too late and the business delivering fails to show, shows up late, brings the wrong bounce house, etc. Just be careful when choosing the right bounce house for your event.
We have provided many many many rentals to the Michigan market and plan to do the same in California! We understand the prices are lower out there and the cost of living is higher. However, we love the environment and would like to spend more time in San Diego.