How much money do you make doing tote rentals?

@you.knowjoe

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Promoted product

Bento Move

Why it worked

The video provides a transparent and detailed breakdown of the financial aspects of a niche business (tote rentals), which appeals to viewers interested in entrepreneurship and side hustles. The clear presentation of costs and profit margins makes the information easily digestible and valuable.

Summary

The creator breaks down the costs and profit margin for renting out totes for moving. They detail expenses for cleaning, delivery, pickup, and mileage, calculating a total fulfillment cost of $77.25 for a one-bedroom order. The rental price of $159 for two weeks results in a profit of $81.75, yielding a 51.4% profit margin.

Structure

1Introduction to tote rental profit question
2Cost breakdown: cleaning and delivery/pickup
3Total fulfillment cost calculation
4Rental price and profit calculation
5

Original caption

Numbers in the tote rental business can vary but this is what a rough estimate of our profit margin looks like. This is if we were fulfilling our one bedroom (24 boxes) order, with no other pickup or deliveries at the same time (empty load on return) #toterentalbusiness #toterental #SmallBusiness #sidehustle #sidehustleideas

More from @you.knowjoe

Product placement

Bento Move (ACTS - visible on shirt, likely the name of the business being discussed, but not explicitly stated what it does beyond tote rentals).

On-screen text

How much money do you make doing tote rentals? HOW MUCH MONEY RENTING OUT? HOW MUCH MONEY DO WE MAKE RENTING OUT? TOTES ONE OF THE QUESTIONS WE GET ASKED SO LET'S DO A COST BREAKDOWN COSTS US TO DO BUSINESS AND THEN ALSO WHAT OUR PROFIT MARGIN LOOKS LIKE. SO CLEANING COSTS US 47 CENTS PER BOX. THAT'S IF I WAS PAYING SOMEBODY $15 AN HOUR TO CLEAN OUR BOXES. DELIVERY AND PICKUP, WE ESTIMATE THAT THEY TAKE AROUND 2 HOURS. THAT'S DELIVERY AND PICKUP COST ABOUT $30. SO IF WE PAYING SOMEBODY $15 AN HOUR, THERE OUR MILEAGE, WE'VE ESTIMATED OVER THE YEARS THAT IT'S ABOUT 45 MILES ROUND TRIP. SO DELIVERY AND PICKUP AT 80 PER MILE. IT COSTS US ANOTHER $36 TO DELIVER AN ORDER. SO OUR TOTAL FULFILLMENT COST FOR ONE BEDROOM, WHICH IS 24 BOXES, IS SEVENTY SEVEN DOLLARS AND TWENTY FIVE CENTS. SO WHAT WE RENT THAT OUT AT IS FOR TWO WEEKS, $159. THAT'S OUR MOST FREQUENTLY BOOKED ITEM THAT WE HAVE. WE HAVE A PROFIT MARGIN OR PROFIT OF EIGHTY ONE DOLLARS AND SEVENTY FIVE CENTS. SO OUR PROFIT MARGIN ON THAT IS 51.4%. NOW OF COURSE YOU HAVE OTHER THINGS LIKE ADS. I'M RUNNING GOOGLE ADS. THE PROCESSING FEES ONLY OPERATE OFF OF CREDIT CARDS. SO AFTER THAT, WE'RE LOOKING AT ABOUT SEVENTY SIX DOLLARS AND EIGHTY FOUR CENTS AS OUR PROFIT. WHICH GIVES US A 48.3% PROFIT MARGIN. THIS NUMBER CAN VARY A LITTLE VARIABLES OF DISTANCE LIKE THAT. JUST A ROUGH ESTIMATE OF WHAT WE DOING HERE IN CHARLOTTE, NORTH CAROLINA.

Transcript

How much money do we make renting out? How much money do we make renting out? Totes one of the questions that we get asked. So let's do a cost breakdown of what it costs us to do business and then also what our profit margin looks like. So cleaning costs us 47 cents per box. That's if I was paying somebody $15 an hour to clean our boxes. Delivery and pickup, we estimate that they take around 2 hours. That's delivery and pickup cost about $30. So if we were paying somebody $15 an hour, there our mileage, we've estimated over the years that it's about 45 miles round trip. So delivery and pickup at 80 per mile. It costs us another $36 to deliver an order. So our total fulfillment cost for one bedroom, which is 24 boxes, is seventy seven dollars and twenty five cents. So what we rent that out at is for two weeks, $159. That's our most frequently booked item that we have. We have a profit margin or profit of eighty one dollars and seventy five cents. So our profit margin on that is 51.4%. Now of course you have other things like ads. I'm running Google ads. The processing fees that only operate off of credit cards. So after that, we're looking at about seventy six dollars and eighty four cents as our profit. Which gives us a 48.3% profit margin. This number can vary a little variables of distance like that. Just a rough estimate of what we doing here in Charlotte, North Carolina.

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31.8Kviews@you.knowjoe

Inventory coming back in means a lot of cleaning in the Tote Rental Business. #t