There are two basic revenue models that are common to most Party Bike operators:
– The Rental Models:
–Owner/Operator Rental Model
–Investor Owned Rental Model
–Restaurant/Resort Owned Rental Model
– The Advertising Model
The Rental Model has been adopted by most Party Bike operators and basically involves renting the Party Bike out to groups of individuals for events such as pub crawls, wedding parties, birthday parties and even corporate events. Typically, the Party Bike is owned by the operator for renting by the hour to groups who reserve tours through the operator’s website. This is known as the “Owner/Operator Rental Model”. The main advantages to this model is the low start-up costs coupled with a high profit margin. This model allows for flexibility and independence to the owner/operator while providing the lucrative benefit of owning your own business.
Another variation of the Rental Model is known as the “Investor Owned Rental Model” where an individual or group of individuals own the bike but hire an operator/manager to run it. This allows the owner to live outside of the target market area while still enjoying the profit margin. Typically, the operator/manager is given lucrative incentives to grow the business and maintain the Party Bike in tip top shape while the owner is free to enjoy other endeavors.
Yet another variation of the Rental Model is the Restaurant/Resort Model where an existing restaurant, pub, resort or theme park operates the Party Bike for the benefit of their customers. The Party Bike can be an exciting customer draw adding a unique experience to the business patrons.
The other revenue model is known as the Advertising Model. The Party Bike is an eye-catching billboard on wheels! It can be used as a promotional tool to advertise your brand, local establishments, product releases or corporate images. Advertising space can generate significant revenue or can be provided in lieu of bike storage or drink specials for your patrons. It is very difficult not to notice a Party Bike as it rolls down the street with a dozen or more happy clients!
Both revenue models can be utilized simultaneously and customized to fit your individual needs while providing you with a highly profitable business.