ROI Potential

Profitability Calculator Helps You See ROI Potential for Our Unique Carnival Games

Thinking about buying, or renting, WhirlWhims' games? All of our games - Pitchburst®, Boom Blaster®, Downpour Derby®, and Spin Soaker® -- deliver fun that in some ways is hard to measure. What's the value of a smile, a laugh, or a bucket of water poured overhead on a hot afternoon? Or a wildly successful party or camp event that is the reason a customer re-books again and again? Or having something from WhirlWhims that's so completely new and different, it becomes the reason your customer chose you over your competitor for a big profitable event?

But when you want to get down to brass tacks - the financial return on investment for buying or renting a WhirlWhims games --- there are simple tools that help you think through. These are included below.

Purchase Return on Investment - To Rent for Profit

To calculate return on investment for any WhirlWhims game you'd like to purchase and rent for profit, you need to know the total cost of the purchase, including extras like shipping and taxes, and any costs of maintaining the game over time. Plus you should consider what you think the annual rental income can be - calculated from average expected per-rental revenue, and the number of rentals you think you can rent in a year. Then you need to think about the "life" of the game you purchase-how many years it will last (or # of years you can depreciate it on your business tax returns).

To help, we've created an Excel® spreadsheet form you can download/save and use and print out to do the calculations for you.

Download the WhirlWhims Game Rental Industry Profitability Calculator

Once you've downloaded and saved this blank file, just enter the items in red - name of the game or "value package" you want to buy, today's date, cost to acquire (lines A, B and C), and your assumptions on expected rentals (lines E. F and G). The computer then calculates for you your profit dollars (first year and sum of first 5 years), your Return On Investment % (first year and sum of first 5 years), and a "break even" number of rentals. This last measure is the number of rentals you'd need to have at your expected rental price, to earn back all of the money invested to buy the game. (We understand the rental industry rule of thumb is approximately 10 times rented.)

It's important to note that rental rates and frequency are you (the buyer's) responsibility. You'll want to set rental rates that are ensure attractive price to your customers, fit with your market demographics, and provide adequate profit return for you. While you can use the Excel model to explore calculated ROI of a range of potential rental rates, only your experience in your market can help set the optimal rates.

You are also responsible to use your best judgment on calculating how many times a game can rent in a year. While WhirlWhims will provide (on request) the free web listing on "Nearest Rental" for your game and stocks "rack cards" and other tools to help you market it, it is you - not WhirlWhims - that is responsible for getting the word out to prospects and customers that you have the new game.

The above example is available for download. Download Pitchburst ROI Example. Note, you must have your own license for Microsoft Excel® to use this file. If you do not please contact us and we will be happy to do the calculations for you and email the results.

Purchase Return on Investment - For Programs (not rentals)

Camps, recreation programs and other non-renting game owners have a less quantifiable means of measuring the value/success of a game purchase. However you can consider the following to help:

• Purchase price vs. available budget
• Purpose - water game vs. action race vs. other options - how often will the game be used as part of your offerings/programs. How critical is having this game to delighting your customers?
• Cool / newness factors - Number of incremental guests/customers who may choose you (vs. competition) because you have this item, or have the reputation for having cool new stuff?
• Guest/customer satisfaction and feedback - Number of positive comments on experiences at your venue/events that may be delivered based on a specific game, and who plan return visits as a result
• Vendor customer service responsiveness - Can you count on the vendor to respond to, or even proactively suggest, ways to improve game play, or maintenance questions?

Rental vs. Purchase considerations

If you've decided you want to feature a specific WhirlWhims game at your location or special event, we recommend checking out the "Nearest Rental" pages on that game's website to see if someone near you already rents it. If there is someone near you listed, go ahead and rent from them. If not, you can contact a party rental company near you and tell them about www.whirlwhims.com, and tell them you'll be their first rental if you purchase the games.

The benefits of renting from a rental company (vs. buying) include:

• Equipment is available, ready and well maintained
• Owners have experience in using the game for best fun, and can offer additional ideas, games and equipment options to make your special event successful
• When you're done, no need to store the item until next time

If you are a frequent user of rented items and want to explore owning WhirlWhims games, you can calculate your options by determining (A) the number of times you'd need the game in the next 1-5 years, (B) the average price you'd expect to pay to rent the item, and (C) how good you are at owning, cleaning, storing and maintaining things. Multiply (A) time (B) and get your projected rental costs, and compare that to your potential purchase costs. It could make sense to buy IF the difference is significant AND you are inclined to take on the ownership care elements of (C).

Fund Raising or Concession Revenue

Each game can be played as a pay-per-play fund raising or concession item. For example:

Pitchburst

• Get a VIP (mayor, school faculty member, coach, celebrity) to sit under the "splursh basket". Charge $1, $3, $5 or more to throw 3 balls and try to "splursh" them.
• Set aside a play area, and sell water balloons (or empty balloons and a hose) to players who play and soak themselves.

Downpour Derby

• Get a VIP (mayor, school faculty member, coach, celebrity) to be the "host" and charge players $1, $3, $5 or more to try and win and soak the VIP.
• Set aside a play area, and charge two (or more people) to play for increments of 5 minutes - challenge them to try and stay dry!

Boom Blaster

• Charge a fee to play - racing side by side with others (who also paid). Give the "winner" a low-cost prize.
• Put prize coupons inside the balloons, and charge people to play. Winners get the prize in their balloon coupon - or collect multiple coupons to win concession prizes

Spin Soaker

• Charge a fee ($1, $3, $5) to play. The winner(s) are the ones that stay dry longest (or get wet soonest).