Peachy Party ATL Daily Update – January 20, 2025

Hey Future Owner,

Today was one of those slower days in the rental business, but even quiet days have their insights. Here’s a snapshot of how it went.

A Quiet Start
The day started with just one pick-up on the books. After wrapping up follow-up emails and texts, I made my way to the warehouse around 11 a.m. to knock it out.

Game Tables: A New Venue, A New Opportunity
The highlight of the day was picking up 32 game tables from a venue we haven’t worked with before. While I was excited to introduce myself to the venue managers, the job wasn’t without its challenges:

• The Drive: The venue is an hour away—53 minutes today with light holiday traffic.

• The Numbers: Using ARA’s job costing tool, here’s the breakdown:

  • Revenue: $680

  • Costs: $383 (based on $20/hr labor and $1.87 per mile driven)

  • Profit: $299 (44% contribution margin)

At first, I thought the margin was too low—my gut says it should be at least 50%. After researching, I found that rental companies in Atlanta typically aim for a 60%-65% margin.

Why I Took the Job Anyway
While the margin wasn’t ideal, here’s why this job still made sense:

1. Potential Repeat Business: This venue could bring regular rentals if we meet expectations.

2. Building Relationships: Meeting the venue managers helps us build rapport for future opportunities.

3. Customer Loyalty: This was a direct referral from a repeat customer.

4. Underutilized Inventory: Game tables don’t rent often, so it’s good to see them in use.

5. Quiet Times: With few jobs on the schedule, taking this opportunity kept things moving.

A Question for the Future
Currently, I calculate vehicle costs at $1.87 per mile, based on last year’s vehicle expenses divided by 10,000 miles driven. This doesn’t account for truck payments, which would drop the margin to under 24%. Should those payments be included in job costing? Something to explore.

Looking Ahead
Slow days are a good time to reflect, improve, and prepare. With strategic relationships, better job costing, and smarter lead nurturing, we’re setting up for a stronger year ahead.

Until next time,

Ramon