ATVs are quickly becoming a popular form of transportation in developing countries. This is because they can be used not only for fun but also as an effective means to get people from point A to B. In the western hemisphere, though, the market is considerable since a great number of people would want to experience the thrill and excitement of riding an ATV.
In 2017 the global market was valued at $7.6 billion. It was projected to grow by about 6.7% starting in 2020 before accelerating even more rapidly over the next few years- reaching nearly $11 billion within 2027, according to some analysts’ estimates!
If you are considering starting a new business but don’t know which industry to pick, an ATV rental company would be a “Fun and profitable” ride for you! Here’s a look at what you need to know before getting started. Spoiler alert: it’s not as hard as it might seem! You’ll be on your way to success with the proper planning and execution. So read all the information you need to get this venture off the ground.
Overview, what you need to know
There are a few things you should know before getting started. First and foremost, you’ll need to create an ATV rental business plan. This document will outline your business goals, strategies, and how you plan on achieving them. Additionally, it’s important to research the rental business market to see what kind of competition you’ll be up against.
Once you’ve created a business plan and done your market research, it’s time to start setting up your rental business. This includes finding a suitable location for your business, acquiring the necessary equipment, and marketing your business to potential customers. With careful planning and execution, you can own a successful ATV rental business in a realistic timeframe!
Covid-19 impact
The outbreak of Covid-19 has significantly impacted the rental business market. As a result, many businesses have been forced to close their doors, either temporarily or permanently. This has created an opportunity for new businesses to enter the market and fill the void left by these closures. Make sure to factor this into your business plan and strategies. Additionally, be prepared to adapt your business plans as the situation evolves. The rental business market is constantly changing, and you’ll need to be flexible in order to.
Profit margins
How will you finance your ATVs for the upcoming season? Depending on the make and model, a new ATV can cost around $10k. However, you could purchase used vehicles less than two years old and in good condition at a better price. Let’s say each one runs about 6500 dollars which isn’t too far off from reality. Assuming 20 such purchases make up our fleet, we’ll spend 130K total! Add onto this expense any building lease/purchase costs. This is without considering the land access fees if needed, which may be associated with public areas (Where customers often go while renting their buggies).
We’ll need to generate some serious revenue to turn a profit with this business. Off-road vehicles are popular among adventurers and adrenaline junkies- perfect for our target market! To turn these prospects into customers marketing efforts should be placed in locations where these types of people frequent-such as outdoor/adventure festivals. Sports stores, outdoor equipment retailers, and other places where our target market shops and hangs out are all excellent options. Also, simple online ads can be placed on websites like Craigslist or Facebook marketplace.
The average rental rate for an ATV is about $250 per day. If we can get just ten customers each day, that’s a gross income of $2,500! After accounting for operational costs like fuel, maintenance, and repairs, we can still expect to see a healthy profit margin.
Assuming a 20% net profit margin, each ATV would need to generate about 800 dollars to make back its purchase price after a season of use. This number doesn’t include any operational costs such as gas, maintenance, or repairs that would need to be carried out throughout the season. However, if we managed to get just 10 ATVs rented out per day at an average rate of 80 dollars per half-day, we would reach our goal of 800 dollars in profit! This is achievable with some effective marketing and a good reputation.
To make things even more profitable, we could always offer additional services such as guided tours or package deals that include rental gear and equipment. Doing this can further increase our margins and bring in even more revenue.
So there you have it! Your ATV rental business can be quite profitable with careful planning and execution. Remember to factor in all necessary costs and always strive to provide excellent customer service.
It’s on the rise
ATVs are a popular way for tourists to explore new trails and activities worldwide. However, there is something for everyone at an ATV or Side-by-side rally. Whether you enjoy the thrill of getting dirty on dirt bikes or looking cool while driving a camo pickup truck with friends, the experience with an ATV is one you’re unlikely to forget. If off-road fun gets YOU excited, then these events will not disappoint!
ATV events in the United States are frequent and can be found year-round. Like White Knuckle Event, which isn’t a weeklong festival but takes place over Memorial Day weekend and features most of the activities as other rallies. Or, for those who love riding on ATVs and UTVs, there is no better place than Utah. The state offers more jamborees than any other, with over 30 per year! You can find one going at least once a month through September this year alone (and May- June too)!
ATV Circuit recently opened an off-road track in India that allows visitors from all walks of life – including those who drive small cars like me! This year they’re hosting the Noida Cup championship, which will be held on May 12th at their 1 km long course with 80cc vehicles up through 350CC four-wheel drives.
Location is the key
You’ll need an ATV rental place with open space and backcountry recreational areas nearby. Before going any further, check if the region’s federal or state agency manages those designated regions. Depending on the type of business type, they may require licenses for operating in their area. A good spot would also offer protection against weather conditions such as high winds, which could cause problems when riding outside all day long without shelter.
So, for location, there are a few things to keep in mind:
- First, you’ll need an area with open space and close to back country recreational locations.
- Secondly, check whether a federal or state agency manages the region. This is important because they may require a license to operate in the area, depending on the type of business. So, before going any further, double-check this with your state or federal agency that governs the area.
- It’s also important to have a covered vehicle storage area to protect your items from all weather conditions.
- Finally, finding a location that protects from weather conditions is also important. This is especially important if you plan on riding outside all day.
What type of gear to buy
Going into an ATV rental business with older, lesser-quality equipment is like going on a wild ride through bumpy terrain. After a while, you’ll realize the importance of a new model and want nothing more than what’s best for your customers! When we say “ATV Rentals” (or UTVs/dirtbikes), think about everything: from sleek RZRs to heavy-duty quads. But if quality matters too, then make sure they’re equipped with enough horsepower, have good brakes, and are from a reputable brand.
Here’s a more detailed list of what to consider before making your purchase:
- The number of people you’re planning to accommodate. If it’s just for fun, then get something that’s comfortable for two people. If you’re looking to start a family-friendly business, then you’ll need quads that can seat four or more people.
- Your budget. You don’t have to break the bank, but know that cheaper models might not be as durable or offer the same features as pricier ones.
- The types of terrain you’ll be riding on. This will help determine the size and power of the ATV. A smaller model might suffice if you are sticking to trails and forests. But suppose you’re planning on venturing out into the desert or other open spaces. In that case, you’ll need something bigger and more powerful.
- What features do you want? Do you need storage space? A winch? Differential locks? Consider what your customers will be looking for and ensure your ATVs have those features.
Ultimately, the best way to figure out what type of gear to buy for your ATV rental business is to consult with an experienced professional. They can help guide you toward models suited to your budget and terrain. And remember, it’s always better to err on the side of caution when it comes to safety!
Buying Vs. Financing
Now that you know what type of gear to buy for your ATV rental business, it’s time to decide whether to finance or buy them outright. Of course, both options have pros and cons, so it’s important to weigh your options carefully before making a decision.
Buying might be the better option if you’re looking to save money in the long run. But suppose you need the flexibility of being able to upgrade or replace your equipment down the line. In that case, financing might be a better choice.
Here are some things to consider when making your decision:
The initial cost.
When you buy, you’ll have to pay the full price upfront. But when you finance, you’ll only have to pay a down payment followed by monthly installments.
The interest rate.
If you finance, you’ll have to pay interest on the loan. The higher the interest rate, the more you’ll end up paying in the long run.
The length of the loan.
The longer the loan, the lower your monthly payments, but the more interest you’ll pay.
Your credit score.
If you have a good credit score, you’ll likely qualify for a lower interest rate and might be able to get a better deal on your loan.
Ultimately, the best way to decide whether to finance or buy your ATV rental gear is to compare offers from different lenders and see what works best for your budget. You can also talk to a financial advisor to get help with making your decision.
About Insurance
ATV Insurance is a must-have to cover any injuries your customers may sustain while on their ride. Still, it’s important not only they are covered by the proper policy. A smart move would be providing them with an extra charge for collision and damage insurance so that in case anything goes wrong outside of what’s included within basic coverage (which can sometimes come at high rates), you’re Vikings will still have protection! Before charging this fee, though, ensure all details around what constitutes “extra expenses” were made clear from day one. Otherwise, someone who has never been insured might find footing costs beyond their means without even realizing it.
ATV insurance policies typically fall into two categories:
- All-terrain vehicle (ATV) insurance
- Off-road vehicle (ORV) insurance.
Separate coverage may be required for each, depending on the insurer. For example, an ATV policy is explicitly designed for quads or four-wheelers used solely for recreation. In contrast, an ORV policy covers a broader range of off-road vehicles, such as dune buggies, golf carts, and go-karts.
Some insurers may offer a combination ATV/ORV policy, which can save you money if you have both types of vehicles. However, in most cases, it’s best to purchase separate policies for each.
The specifics of an ATV insurance policy can vary by insurer, but in general, coverage may include:
- Property damage liability: This helps pay to repair or replace someone else’s property if you cause an accident with your ATV.
- Bodily injury liability Helps cover medical bills and other expenses if you injure someone else in an ATV accident.
- Medical payments or personal injury protection (PIP): Helps pay for your medical bills and other expenses if you’re injured in an ATV accident, regardless of who is at fault.
- Uninsured/underinsured motorist: Helps pay for your expenses if you’re in an accident caused by a driver who doesn’t have insurance or doesn’t have enough insurance.
- Collision: Helps pay to repair or replace your ATV if it’s damaged in an accident, regardless of who is at fault. This keeps the renter’s insurance company from charging them for damages.
- Comprehensive: Helps pay to repair or replace your ATV if it’s damaged by something other than an accident, such as theft, vandalism, or weather damage.
- Towing and labor: Help pay for towing and labor costs if your ATV breaks down.
How to set prices for your rentals
Here are a few tips on how to set your rental pricing structure:
1. Know your costs. Before setting any prices, you need to know how much it costs to rent an ATV. This includes the cost of the vehicle itself, as well as any maintenance or repair costs. Once you know your costs, you can start to mark up your rental fee accordingly.
2. Consider the competition. Take a look at what other ATV businesses are charging. This will give you a good idea of the going rate for ATV rentals. You don’t want to charge too much or too little compared to other businesses.
3. Offer discounts. One way to attract customers is to offer discounts on your rates. For example, you could offer a discount for multi-day rentals or groups.
4. Be flexible with your pricing. Finally, be willing to negotiate on price. Some customers may be willing to pay more if they feel they are getting a good deal. Others may be more price-sensitive and need a lower rate to rent from you. It’s important to be flexible to get the most business possible.
Software to run your business
Various rental management software is available to help you run your ATV rental business. Choose one that will allow you to track inventory, customers, reservations, and payments quickly and efficiently.
Some things to consider when choosing rental software for your ATV business:
- Ease of use: select a program that is easy for you and your employees.
- Compatibility: make sure the software is compatible with the computers and devices you already have in your office.
- Cost: compare the price of different software programs to find one that fits your budget.
- Customer support: choose a software provider that offers excellent customer support to answer your questions or resolve problems while using the program.
The right rental software can help you run your ATV business more efficiently and profitably. Take the time to find the right program for your needs, and you’ll be glad you did.
How to market your business
You know that marketing is key to getting customers through your door. But what’s the best way to market your ATV rental business?
There are a number of ways you can promote your business, both online and offline. Here are some ideas to get you started:
1. Create a website. A website is a great way to promote your business and give potential customers all the information they need about your services. Make sure to include clear pricing information, photos of your ATVs, and contact details on your website.
2. Use social media. Social media is a powerful marketing tool that can help you reach a large audience with little effort. Create profiles on popular platforms like Facebook, Twitter, and Instagram, and regularly post engaging content that will encourage people to check out your business.
3. Get listed in online directories. Online directories are a great way to get your business in front of potential customers looking for ATV rentals in your area. Add your business to popular directories like Yelp and Google My Business.
4. Run a promotion. Running a promotion is a great way to generate interest in your business and attract new customers. For example, offer a discount on your services or run a contest where participants can win a free ATV rental.
5. distribute flyers and posters. Flyers and posters are another great way to offline promote your ATV rental business. Please place them in high-traffic areas like grocery stores, coffee shops, and gyms.
6. Sponsor a local event. Sponsoring a local event is a great way to get your business name out there and show your support for the community. Choose an event that would be popular with your target audiences, such as a charity 5k race or a music festival.
7. Give away freebies. Everyone loves free stuff! Give out branded items like t-shirts, water bottles, or stickers to help promote your ATV rental business.
8. Get involved in the community. Community involvement is a great way to connect with potential customers and build goodwill for your business. For example, volunteer at local events, sponsor a youth sports team or donate to a local charity.
9. Host an event at your business. Hosting an event is a great way to promote your ATV rental business and give potential customers a chance to check out your facility. For example, offer free test rides, hold a BBQ, or host a holiday party.
10. Offer delivery to customers who want to use the ATV in other locations. The delivery charge can be another additional source of income for you. You can either rent transportation equipment (To load the ATV on) or offer a flat rate delivery charge based on the region. This can be easily calculated by the rental software you are using.
11. Get connected with your local tourism boards and chambers of commerce to spread the word in tourist centers and communities.
12. Advertise in the local newspaper or on radio stations. Advertising in the local newspaper or on popular radio stations is a great way to reach potential customers who might not be aware of your business.
Regardless of your marketing strategies, be sure to focus on creating quality content that will appeal to your target audience.
Conclusion
ATV rental businesses can be a great idea to generate income and provide people with a fun activity. To be successful, you’ll need to choose the right software, market your business effectively, and provide excellent customer service. But, with a little effort, you can build a thriving ATV rental business!