Big Tent, Big Decisions: Is It Worth It? - February 16, 2025

More Tent, More Problems

I got some great feedback, which I’m always open to—so keep it coming. Spent the whole day talking to my analyst (aka ChatGPT) about whether a bigger A-frame tent makes sense. Two things are clear:

1. More tent = more stuff under it. And in some cases, that means nicer stuff, too. Problem is, I don’t have a ton of stuff—quantity or quality—so now we’re talking about more than just a tent investment.

2. Turning customers away sucks. Every time I have to say no or send them to another company, it sends me down a research rabbit hole I’ve already been through. Having the tent means keeping more business, which matters.

Pricing: Not Playing the Race to the Bottom

Ran the numbers, and $2 per sq. ft. is too high for my market. Already knew this, but now I have more data to back it up. The companies charging sub-$1 for a 30-wide tent? No thanks. If that’s the game, I’m taking my ball and playing somewhere else. Plus, their pricing probably doesn’t include labor, which makes their advertised rates misleading.

Costs: Labor + Depreciation = 80% of Expenses

Labor is my biggest cost, assuming a four-person crew (which seems optimal for this kind of tent). Next up is depreciation, which depends on the quality of the tent I buy and ultimately, the cost. That’s a big deal because it’s tied to price, and I haven’t factored in resale value yet.

One thing I won’t do? Set my rates based on what I pay for the tent. That’s not how pricing should work. I’ll base my anaylsis on what the market allows and focus on making sure customers see the value.

Positioning: Be the Best, Not the Cheapest

We’re going to be the highest on a per sq. ft. basis. That’s fine. I’m not interested in chasing after price-sensitive clients. The real focus needs to be on showing why we’re worth it.

For example, a company advertising a 30-wide tent at $1 per sq. ft. might be using a West Coast frame tent, which doesn’t compare to a keder frame, in my option. Customers don’t know that unless we tell them. Better yet, we need to show them. That’s on us.

Alternative Profitability Thinking

I am not a fan of calculating payback period, but for this to work, I’d need to rent the tent twice a month to hit a 1-2 year payback. Not great.

My “analyst” suggested another way to think about it:

• Instead of assigning storage costs per rental, bigger rental companies look at profit per sq. ft. per year.

• A tent that rents 12x per year is a better use of space than, say, a sofa that rents 3x per year, assuming both take up the same warehouse space. Something to keep in mind, at least.

The Bottom Line

Still need to refine the analysis. I ultimately want to get it where I just plug in some numbers and get a decision. Or do I even need to at this point? Maybe I’ll just build a custom GPT, feed it my quotes, and let it analyze based on our goals.

The numbers aren’t quite where I want them yet, but I know this much—I’m not playing the underpricing game. If we do this, we do it right.