How to Achieve Your Passive Income Goals with Your Photo Booth in 2020
Part of the appeal of having a photo booth business is that, a lot of times, they take care of themselves. Sure, you might have to be at the events to assist guests and create that amazing guest experience that we're always talking about, but generally speaking they're easy to run.
What if you could make money with your photo booth passively?
Hint, hint - you can!
Today we're going to be talking about automating your iPad-based photo booth, like the incredible Salsa Photobooth, for example, to earn you money without you even being there. Let's jump in!
What are permanent installs? Permanent installs are, simply put, long-term photo booth rentals.
Permanent installs are an incredible way to give yourself some passive income. Sure, you have to maintain them and fix any problems that may arise while they're being rented, but in general, you set them up, train the company's staff, discuss goals, and let it do its thing.
A lot of photo booth owners, however, are scared by permanent rentals because there are a lot of things that one must remember. Contracts, setup, pricing, and training to name a few.
But as always, have no fear because today we're going to tell you how to make that extra income with ease.
The Benefits of Long-Term Rentals
The benefits of a permanent install are endless. They enhance the customer experience and also add another form of marketing while likely scoring a long-term discount.
For example, let's say a car dealership is interested in a permanent install. This is a great way for the customers to share when they've made a big purchase - a car!
They're able to get behind the booth, take a picture with their family and friends, or even the car salesman, and remember this day as something special.
Why is this good for the car dealership?
Well, like we've talked about in a previous article, it enhances the customer experience which is invaluable for any business. But, more than just that, it allows the dealership to market their company with little work on their end.
After all, what's the customer going to do with this photo? They're going to share their special moment on social media or, if the permanent install offers physical prints, display the photo in their home or workplace.
And even better yet, since it's a long term rental, you're able to offer a discount to the business.
Who doesn't love discounts?
What's Included in a Permanent Install?
A permanent install includes much of what a normal booking includes, but there are some differences as well. Here's what's typically included:
- - iPad-based Photo Booth (Like the easy-to-use Salsa Photobooth)
- - Sharing Station and Printer (If you're going to include physical prints)
- - The software, pre-programmed for the company
- - Support if something goes wrong
- - Training
- - WiFi router (More on this in a second ...)
The biggest difference you'll see right off the bat is support. One thing that us photo booth owners take for granted is that we're experts of our own equipment. What takes us five minutes, may take someone else 15 minutes or more.
After all, we use our equipment almost every day. This may be the first time that this company is using a photo booth.
With that said, you must also offer training. While your client won't end up being a photo booth expert like yourself, it's important that they're not calling or emailing you for simple things like restarting the iPad, fixing a paper jam, etc.
These are simple fixes that anyone can learn and you must offer adequate training to not waste your own time later.
And finally, the WiFi router. We always recommend that you bring your own WiFi router to install at the business' location and, if possible, have your own internet connection with the local provider.
This will ensure that the iPad-based photo booth is the only device connected to the router instead of potentially hundreds on the company's WiFi router. This helps dramatically decrease issues with uploading or emailing photos taken on the booth.
Pricing Your Long-Term Rental
In a dream world we'd love to take the price of a normal photo booth booking and multiple it by 30 days in a month, right? Unfortunately, there aren't many companies that are willing to spend $60,000 per month on a photo booth.
However, you also don't want to short-sell yourself.
It's important to be profitable, but you also have to think in the long-term. While you'll make less money monthly on that particular photo booth, you're earning guaranteed, passive income with little work on your end.
And as you know, diversifying your income is incredibly important.
Here's one example of how you could think about pricing. Keep in mind, these are prices per year:
|Programming (Based on 10 hours)||$240||$480|
|Printer and Stand||$2,000||$4,000|
|Training and Manual Creation||$120||$200|
|Monthly Tech Support||$360||$720|
Like I said, these are just examples of prices, yours may be different, but it should give you a good general idea.
What you'll want to do is take the total price, in this case $23,380, and divide it by the months that your client is interested in booking.
It's good practice to have a minimum booking requirement. Something like three to six months is good practice.
Pricing is also subject to change and you must take every client's needs into account. In my previous example of a car dealership, you could stick pretty close to the pricing listed above.
Well, the photo booth is likely to see less traffic and, as a result, have less wear and tear. This means you'll be able to re-use most of the equipment in the future and will have a higher profit margin.
On the other hand, if your photo booth is in a mall or high-traffic store, it'll experience more wear and tear and you have a higher risk of having to replace something. In those situations, you should definitely increase the price.
Contracts and Renewal Terms
Now, we're not lawyers nor are we giving you legal advice in any way. But, when you manage to book a long-term gig, it's important that you make the appropriate changes to your contract.
In your contract you should include:
- - Client Requirements (What is your client responsible for? Securing the booth, turning on the equipment, etc. Be specific here!)
- - Warranties and Repairs (What warranties and repairs are included in your booking price? If you have to go on-site, is there a charge for doing so?)
- - Renewal Terms (If they want to renew the booth for a longer-term, are there any discounts?)
- - Cancellations (If someone wants to cancel, are they on the hook for any additional fees?)
- - Booth Return (When the booth is returned, in what quality are you expecting to have it returned? If it doesn't meet that quality, how much will you charge?)
These are important parts of your permanent install contract that must be addressed. If not, this passive income adventure could easily turn into a nightmare.
Protect yourself and your photo booth business!
Again, we're not lawyers nor insurance experts. Definitely speak with your insurance company and lawyer before doing anything.
With that said, here are some of our suggestions when it comes to insuring your photo booth:
- - Get your client to assume liability for your photo booth (Your insurance will likely not cover equipment that you rent out to others)
- - Limitation of Liability (You don't want the company to sue you because they didn't see the return on investment that they were expecting)
I know these aren't the most exciting parts of owning a photo booth business, but as I said above, they're incredibly important. You always should protect yourself from issues that could arise.
Want to learn more tips and tricks on how to have a successful photo booth business?
Check out our other blog posts and our 2018 Booth Summit videos where you can hear from real PBSCO Photobooth owners on how they've led their businesses to success!
See how much you can make
Use our easy profit calculator to analyze search volumes in your area and see how profitable a photo booth business can be for you.