Running a trampoline can come with many ups and downs in revenue (pun intended). For those of you who have been experiencing beautiful weather lately, you’re probably experiencing a drought in sales.
That’s because you’re relying on a single revenue stream.
At IATP 2019, there were plenty of workshops around marketing, sales, and operations for trampoline parks, but very few touched on the topic of creating new revenue streams. Finding additional sources of income not only puts you in a better position to survive slowdowns in foot traffic, but it also fuels your profitability and growth.
Now let’s jump into five ways to create new revenue streams for your trampoline park:
Predictable Revenue is a beautiful thing. Recurring revenue is even better. While this sounds good in theory, cracking the subscription business model code will come with great rewards.
Look at the explosive growth of Planet Fitness and the high-value-low-price (HVLP) gyms. Similar to Netflix, Uber, and Amazon, the fitness centers have become a part of our daily routines by providing a frictionless customer experience.
To get started with finding a subscription for your facility, start by identifying who your target customers are and a specific “job,” they’re trying to accomplish.
For example, let’s take stay-at-home moms with an average household income of over $100,000. She has a desire to get the kids out of the house to do active, fun activities. She also wants to get some “mom” time and play dates with other moms in the area.
The goal at this phase isn’t to get as many customers to subscribe; it’s to learn and make them successful at accomplishing their jobs. You’ll also want to target the early adopters in your market. Once you’ve tested and validated the subscription works, you’ll have a higher probability of reducing churn and retaining your subscribers.
You may already be selling socks, gift cards, and tickets for special events throughout the year. What else can you sell to bring in more sales around the clock?
Well, if you apply the same framework of testing and validating your hypothesis, you’ll increase your probability of finding a product that hits a home run. If you already have an established brand, you can try selling cool sweatshirts, water bottles, keychains.
For other sources of inspiration, check out Amazon Best Sellers, the most popular products on Amazon based on sales. You can also conduct some keyword research and look for emerging trends.
As you’re finding what works, you may be shipping products yourself for a while. Once you’ve found something that sells, you’ll want to consider outsourcing your order fulfillment to make the process scalable.
If you’re responsible for the daunting task of finding a new attraction for your park, what would you pick? While ninja courses and rock climbing walls may be the obvious choice, you’re looking at about $5-6 per guest. That’s if they purchase your premium jump tickets or longer times.
With laser tag, you can charge $7-8 per player with the opportunity to run 3-5 games per hour. You’ll also tap into a new segment of your market while giving an exciting break from all the strenuous physical activities.
Like every entertainment center in competitive markets, trampoline parks need to evolve and diversify. The early adopters have already made the shift from being a trampoline park to an adventure park to adjust to the mix of attractions. The ones who have added laser tag are already finding success with the combination.
To get revenue projections for your facility in your market, request a consultation from one of our experts.
Piggy-backing on the revenue stream from adding a new attraction (like laser tag), you’re enhancing your party business. You’re also opening new revenue-generating opportunities for team-building activities and other programs more conducive with laser tag.
The great thing about new programs is the fact that you have a target audience for your outbound sales efforts. During your slow days, you can always ramp up outreach to established businesses and organizations. This way, you’re not relying on bad weather to bring people through your doors.
To give you an idea for a new program to experiment with, let’s start with a local business owner who wants to increase awareness and sales in the market. With the high volume of guests you get at your facility, you can consider selling your prospects on a pay-per-click for a relevant promotional offer for your client. By tracking the number of visits you get with a tracked URL, you’ll be able to quantify the source of leads for them.
Remember, your initial goal isn’t to sell as many ads as possible from the start. Your focus is on targeting early adopters and making them successful in their desired outcomes.
Think about your local restaurants and Chick-fil-a’s who offer catering services for customers who prefer to have the food brought to them. For many groups, it can be a hassle rounding everyone up and getting them to go to a specific location at any given time.
By bringing your laser tag attraction to them, you minimize the friction that can keep customers from buying from you. Remember, it’s the businesses that deliver a better experience who will win.
We’ve talked to many mobile laser tag owners who have found strong demand and sales with their rentals. Many have even used the revenue generated to build a new facility.
Creating new revenue streams helps you prepare for changes in your market, provide income during slow periods, and identify new growth opportunities. By keeping up with today’s customers and focusing on their success first, you improve your ability to create scale.
We hope you use these ideas to add to what you’ve learned at IATP and take your business to new heights. If you’re interested in new sources of ideas and inspiration, subscribe to the Edge Newsletter for a monthly dose of helpful tips to grow your business.