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Whether business benefits limousine rental

Whether a business is beneficial for limousine rental

As an option for starting your own business entrepreneurs are considering a variety of ideas.

Someone is trying to take a completely new segment of the market, while others are willing to share profits with competitors in an already explored the area.

Business rental limousines refers specifically to the second option, although competition in this area is low.

The complexities of the business process

The main problem for novice businessman,plans to open a service limousine rental is quite high "threshold of entry." The cost of a used limo in the Russian market is rarely less than two million rubles - for the money, in principle, it is possible to purchase some inexpensive new cars for rent. On the other hand, the price of rental limousine with a driver is also much higher than if a conventional machine can be rented for one or two thousand rubles a day, the limousine will cost two or three thousand rubles per hour. However, it is not difficult to calculate that, excluding the driver's labor payment for fuel costs, depreciation of cars, taxes and spending, only to recover the costs for the purchase of a limousine, it should work out about two thousand hours.
Even if we assume that your limousine will"Work" for two hundred hours a month (which is 6-7 hours each day), it is still at least a year will pass before your investment pays off. In reality, however, should not expect a term of two years, as the "clean" profits are likely to be much smaller.

Among the most extravagant proposals for the limousine market can distinguish the car with a three-meter swimming pool in the lounge. In Russia, these machines are just beginning to emerge.

Another difficulty lies in the fact thatthe number of potential customers of such a service is limited. This is especially true in small towns, so before making a decision about the opening of rental, should carefully study the market and competitors. In 70% of cases bought limousines for weddings, so try to find out how many weddings per month recorded local registry offices. Even in the case of complete absence of competitors it does not make sense to expect that all the couple want to use your services: someone they will not afford it, and someone does decide to do without the official part of the ceremony. If there are competitors in the market, your share will be even less.

Sometimes renting a limousine directly to the celebration (eg, birthday). In such cases, customers tend to be interested in the roomy car for 15-20 people.

Nuances of large cities

In the big cities, as a rule, the market is dividedbetween large companies, has its own fleet of dozens of limousines. Of course, to compete with them is almost impossible, especially given that the proposal is slightly higher than the level of demand. Companies are trying to attract customers with additional options, the original versions, discounts and promotions, in addition, they can afford to provide customers with a choice of several machines. Of course, if your starting capital is much higher than the minimum bar, you can buy several cars to increase their competitiveness, but this step is associated with certain risks.
Do not forget that you will need time andadditional advertising costs to attract the attention of potential tenants. Nevertheless, the business of limousine rental can be a profitable venture if to develop it for a long time, constantly updated fleet and not wait for super-profits, especially at first.

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