August 2024 - Peachy Party Business Update

Let's start with the numbers. QuickBooks reports that August brought in sales of $13,796.79 with a net income of $7,553.97, showing a strong 54% margin. I’d be pretty satisfied with those results if they were the whole story.

However, our inventory software, Goodshuffle, gives a clearer picture. The events and jobs in August actually brought in about $8,120. Here's what the real breakdown looks like:

• Sales: $8,120

• Expenses: $5,838

• Net Income: $2,282

• Margin: 28%

While not the eye-catching margin from QuickBooks, it’s still decent (at this stage in our business) for what’s traditionally a slow month in the event rental business.

A Quiet August

July and August are typically dead months in this market. We only managed to complete eight events this August. One of those was a last-minute booking for a cooking tent at a wedding in Macon, GA, more than an hour away. This next-day job accounted for nearly 30% of the month’s revenue.

Normally, I’d steer clear of events that far out because of the logistics, but I took it for the learning experience, beyond just the income.

Lessons Learned from the Cooking Tent Job

1. Using Older Inventory: It was a cooking tent setup, which gave me the chance to use an older tent top and frame that don’t get rented out often.

2. Understanding Fire Marshall Requirements: The event required coordination with the fire marshall. As our business grows, avoiding these interactions won’t be an option, so this job gave me a better understanding of what fire marshalls look for.

3. Expanding in the Indian Wedding Market: This was another Indian wedding, and word-of-mouth is huge in this community. Building a reputation here could lead to more opportunities down the line.

4. Establishing a Venue Relationship: The wedding took place at a Marriott-owned convention center, helping me build a new relationship with the venue, which could lead to future business.

Trip to Houston: Tent Boot Camp

Another big highlight this month was my trip to Houston for a tent boot camp. The main purpose was to visit Houston Tents and Events. I’ve met the owner a few times at trade shows, and I admire the way he’s built his business. Unlike me, he focuses on working on the business, not in it—something I’m trying to shift toward as Peachy Party scales.

At the event, there was an extended panel discussion with the local fire marshal department, which gave me a lot more confidence to stop avoiding them and start working with them.

Doubling Down on Google Ads

I also decided to double our Google ad budget. This has brought in a flood of new requests, but they’ve mainly been for smaller orders—think 20 chairs and 3 tables. Unfortunately, these don’t convert well, as people tend to lose interest once delivery fees are added.

Adjusting Pricing to Discourage Small Orders

To tackle this issue, I’ve had to increase the price of our black chairs from $2 to $2.50, and honestly, I might need to raise it again. These black chairs, along with our $10 banquet tables, are currently the least expensive items in our catalog. I’ve always considered them a loss-leader, but now that we have inventory software in place, I plan to dive deeper into their profitability after gathering six months of data.

Changing Delivery Charge Display for Better Conversions

In an effort to increase conversions (something I need to track more closely), I’ve changed how we display delivery fees. Previously, we showed the total delivery and pickup charge as one line item. Now, I’ve split it into two separate charges: one for delivery and one for return/pickup. While the overall amount hasn’t changed, I’m hoping that by breaking it up into smaller numbers, customers will be less discouraged by the fees.

Wrapping It Up

August may have been slow in terms of events, but it wasn’t without progress. From testing new systems and pricing strategies to gaining insights on fire marshal regulations and refining our approach to delivery charges, these small adjustments are laying the groundwork for long-term growth.