A photo booth business gives you the ability to provide a fun and memorable experience to your clients. They will hire you to take photos at a special event such as a wedding or company party. The guests will use your photo booth and have their pictures taken while wearing funny hats and silly props like signs or boas. In the end, they will get a photo strip printed out to take home, usually with your clients name or logo on it. You may even offer a social media sharing station for the guests to send the pictures to themselves and view the gallery of all the pics, GIFs and boomerangs online.
In this article, you will learn how to start your very own photo booth rental business, and discover if this is a good fit for you.
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Having a clear and concise plan is critical for your new business to thrive. As a budding entrepreneur, your business plan will act as your guide and help you navigate the pitfalls of starting a new business venture.
90% of small businesses fail within the first 2 years, and the 10% that succeed do so partially by luck, but also by having a solid, well thought out plan for how they are going to make money and be profitable.
Thankfully, a photo booth business has a relatively few costs and has a low barrier to entry and can be started fairly inexpensively. You don’t have any major franchise fees to pay, and the equipment costs required to operate a photo booth is getting cheaper every year.
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However, this low cost to start also means there is a lot of competition, so you need to make sure that you are planning how you will stand out from your competition.
The primary costs of starting up your own photo booth rental company are buying the photo booth, setting up your website, cost of advertising, and hiring people to work for you.
The basic costs to buy a photo booth: (Retail prices are shown, you may be able to buy these items on sale and save some $)
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When you add it all up, the total cost to be up and running with a complete photo booth kit is just $5385!
And while you can technically get started with less equipment, this is the minimum that we recommend you have to really provide a solid experience for people in your photo booth.
The ongoing expenses depend on the software that you choose to use for your photo booth. If you use a high quality professional app like Snappic, then you can expect to pay either per event, or per month, or per year, depending on the features that you want.
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Some software applications have a one time fee, but are lacking in features, and the top photo booth apps for iPad all generally have a monthly or annual subscription fee to ensure that you are getting the highest quality features and service.
When choosing the software you want to use in your business, keep track of whether it is a one-time cost for the license, or if you will have an ongoing monthly fee or annual cost of renewal.
As for other incidental monthly costs, this depends on if you rent an office space or store your equipment and operate out of your home, which may provide some nice tax benefits at the end of the year.
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The other major ongoing expenses are the cost of media. Photo booth media is the term for paper & ink. Modern dye sublimation photo printers do not use traditional ink or toner like ink jet printers, instead they use an “ink ribbon” and use heat to transfer the color to the glossy photo paper.
The cost of the media depends on the printer that you use. If you get a quality photo printer like a DNP 620a or a Mistubishi CP-D70DW printer, then you can expect media to cost about $50 per roll.
There are multiple target markets for photo booths. Some companies aim their rentals at private parties and social events, such as weddings, schools, company parties, holiday parties, birthday parties, etc.
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Then there is the market of unattended kiosk leases such as in malls, amusement parks, boardwalks, and arcades. These photo booths tend to have money collectors in them so people end up paying per print.
But by far the largest market segment for your photo booth rental business is the private party rental sector. You will want to research local party rental companies, wedding & bridal shows, and build a list of businesses who are looking for regular annual holiday parties.
The old fashioned photo booth business model was to charge on a per-shot basis. But that was for the unattended kiosks in the mall or arcade.
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With modern photo booth rental companies being hired for private events or to create fun photo experiences for businesses, the pricing model has changed.
You can also make money by offering add-ons and upgrades such as social media sharing stations, live slideshows of pictures taken inside the photo booth, scrapbooks/guestbooks, jumbo sized prints, game rentals, and more.
What you need to do in order to figure out how much YOU must charge your own customers is market research. What kind of customers are you selling to?
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What kind of photo booth experience are you providing? Are you providing a simple basic rental package that is a commodity, or are you providing a unique, personalized, one-of-a-kind experience?
The key to being able to charge more for your services is to package and bundle your services in such a way that the perceived and actual value that you provide is more than the dollar amount you are charging.
The key is in perfecting your sales technique, and identifying your customers wants and desires, their pain points and frustrations, and creating an actual experience for their guests that they cannot create themselves.
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So, to recap, if you are simply selling a photo booth rental where a picture is taken and a print is given to the guest for a set amount of hours, then the perceived value will be lower and the amount you are able to charge will be lower.
But if you communicate to your customer how you will give every guest the experience of being a rock star on the red carpet having their picture taken by “paparazzi”, and they’ll have a memorable keepsake glamour shot printout to take home to remember the event by… now you are selling an EXPERIENCE, instead of just a rental, and you can package that easily to get a much higher rate.
Photo booths are a highly profitable business venture. Due to the low cost for the equipment, the majority of costs involved in running your business comes down to cost of labor, and cost of marketing.
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**NOTE* This is NOT a representation of earnings potential, nothing is guaranteed. How much money you earn in your photo booth business is entirely dependent upon you and your circumstances. This is only meant as a guide to understand the profit model. **
Labor Costs – If we hire an attendant to work the event for us, and we pay them $25/hour, then our labor costs are $75.
These scenarios are very rough numbers, the actual costs and profit involved depends on your actual expenses for employees, payroll taxes, media usage, etc. But you can see how a photo booth rental service provides a very high margin service.
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Even though your photo booth is only a 2 or 3 hour rental, the odds that you are going to be able to have it rented out more than once per day are slim.
So you will want to take that into account in your pricing, the opportunity cost of one event over another (which is why many companies have more than one photo booth).
If you also promote and provide rentals on Fridays and Sundays, then the earning potentials can be double or triple. Even more so if you have multiple photo booths going out at the same time.
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When picking a name for your business, you will want it to be memorable, recognizable, and not confused with any other company. It is almost more important that you are able to get the domain name for your business, so be sure to check for domain availability during this process.
Think about your target market, what kind of events are you going to be providing services to most of the time? You will want to pick a name that resonates with your target market and still conveys a sense of what services you provide.
You will want to be a limited liability company (LLC) or S-Corp in order to provide liability protection between you personally and the company.
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If you plan on having employees work as photo booth attendants at your events, then you should also register with the IRS to get an EIN tax ID for your business. Consult with your accountant or payroll company to
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