Moving is always stressful and using cardboard boxes is one of the biggest stressors. They aren’t sturdy, easily get punctured, and don’t do a great job at protecting valuables. An average American moves 11.2 times in their lives. Not only that amounts to a lot of mental stress, but also produces tons of waste, which can be easily replaced by reusable, sturdy plastic totes or boxes.
Buying new plastic totes just to move is not affordable, so many have turned to renting them out. If starting a moving box rental has crossed your mind but you’re unsure how to proceed, this blog breaks it down for you.
Start-Up Costs
On average, expect startup costs to be around $5,000 to $10,000. This includes the cost of sturdy, eco-friendly boxes, branding, a website, and some initial marketing.
- Boxes: You’ll need professional-grade reusable boxes, which typically cost around $10 per box if purchased in bulk. A standard starter inventory might include 300-400 boxes, which brings your total to $3,000 to $4,000. Each box can be used for several years until it needs to be disposed of.
- Branding and Website: Website setup can cost around $1,000 to $3,000 since it’ll include a “place your order online” option. If you’re starting out as a one-person team, spend a few extra dollars for automating customer service, reminders, and social media post scheduling.
- Marketing: You can start with as little as $300 to $500 but that narrows down your marketing option. If there aren’t too many moving box rentals in your city, education will be a big part of your marketing strategy. Networking with local businesses and real estate agents will lower some of your upfront marketing costs.
Monthly Expenses
Once your business is up and running, your ongoing costs will include maintenance, marketing, and storage. Here’s a rough estimate:
- Storage: Storage costs between $200 to $500 a month depending on the size of your operation. If you’ve got a big garage or a spare room in your house, it’ll cut down your cost right away.
- Sanitation: After every order, you’ll have to clean and sanitize the boxes and keep them ready for the next customer. Expect to spend $75 to $100 every few months on cleaning supplies.
- Insurance: No matter how small your business is, insurance is a must. Monthly costs begin as low as $50.
- Marketing: As your business grows, allocate around $300 to $500 for continuous marketing through digital ads, social media, and partnerships.
How to Price the Rentals?
Most moving box rental businesses in the US charge around $1.50 to $2.50 per box per week. For example, if you rent 100 boxes at $2 per box per week, you’ll make $200 for that rental. Most people rent for two weeks minimum, so that’s $400 right away.
If those boxes are rented out 2 times in a month, your revenue for those boxes alone can reach $800. And that’s only ⅓ of your inventory. If you’re able to rent out all 300 boxes for all four-five weeks of the month, you’ll make $2,400 to $3,200. After removing the expenses we mentioned above, you’ll profit $2,000 on average with only spending 15-20 hours a week on growing the business. With full-time hours, you can easily triple your profit.
When Do I Scale the Business?
Once you’re consistently renting out 80 to 90% of your inventory, it’s time to scale. Before you add more boxes, list down additional services like tags and dollies that can make your offer better than competition. Dollies can be rented out for $10/day and each dolly can carry up to 5 moving totes. Your customers will truly appreciate the convenience.
So, is it a good full-time business?
We know you are convinced that it is a great full-time business. What makes it great is that it is a simple business idea, you don’t need to put in active hours of work, and can grow as fast as you want. Once you purchase inventory, it’ll last you for a few years, which will bring up your profit potential every year.
If you’re diving into entrepreneurship for the first time, you might feel a little overwhelmed at times. Honestly, that’s normal. One thing that can really help is finding a business coach, especially one who knows their way in this niche.
Carrie can be that coach for you! She has trained women in North America to start their own moving box rentals, quit their 9-to-5 jobs, and spend more time with their family. Ready to become a proud business owner? Book a Clarity Call with our team today!
