GROW YOUR BIKE RENTAL BUSINESS
Donkey Republic strives for each and every partner to succeed. We are working hard to create a strong and recognizable brand that will help grow our partner’s business. Partnership with Donkey Republic means that the local bike renting business becomes a part of a global bike sharing community. Donkey Republic partners are not standing alone in their business operations. We are provide our partners with valuable tips on how to grow their businesses making sure that the road to success is as smooth as possible.
Donkey Republic commits to establish sales channels globally. That means strong presence in social media and having ad campaigns on big tourism platforms such as TripAdvisor and Lonely Planet. Our main responsibility from the marketing point of view is to convert potential customers into paying customers through online sales. We are going to achieve that through:
Donkey presence in big tourism industry websites (LonelyPlanet, Trip Advisor etc.)
Content Marketing (http://www.citiesontwowheels.com)
Combination of global efforts with local marketing strategies will help to grow both businesses. Therefore Donkey Republic encourages local partner efforts to increase Donkey Republic visibility in the area the partner operates. There are multiple ways of doing that. Some is supported by Donkey Republic directly: partners will receive marketing material, such as Donkey buddy stickers for the bikes, designs for flyers, coupon codes, seat covers and the Donkey widget for their own and partner's websites.
We provide good practices to increase the number of sales channels:
Create Google Ads in order to reach the right segment of the potential customers.
Advertise on Google Maps, it’s a great way to attract customers who are searching similar businesses in your area.
In order to increase the number of walk-ins make sure you make the bikes and the hubs visible. Ads on the bikes and posters in the hub locations is a really good idea.
Ask your affiliates to place links to Donkey Republic website (https://www.donkey.bike) on their websites as well.
- Provide your affiliates with posters, stickers and flyers;
Set up partnerships with the hotels and hostels in your area. Having hubs around the hotel will be beneficial both for you and the hotel.
Bigger hotels normally have their own bike renting operations. You can offer them to take over the operation by implementing Donkey Kits on their bikes, significantly cutting the transaction and other operational costs for them. As well as increasing external customer traffic.
It’s a good idea to look into the smaller hospitality businesses in the area as well to let them know your hub locations and ask them to recommend Donkey for their visitors.
Another good idea is to connect with the tour guide companies. They might be interested in renting the bikes for their tours or connecting their clients with the best bike rental solution in town.
Make a deal with local conference center they might be interested in offering their clients alternative transportation to get around the city.
The tourist information centers is yet another good location to establish your hub. Normally tourist centres are located in the attractive locations with the sufficient traffic of potential new clients.
Making partnerships with kiosks is another good move. This will allow you to advertise your hubs via Google Maps if kiosks have an address.
Every business is there to make money and to make sure it really does, some financial projections needs to be made.
Planned investment - how much are you prepared to invest?
Cash Flow statement - this projection will help you to determine the channels of incomes and expenses, help you to estimate your monthly cash situation, plan your expenses and earnings accordingly.
Revenue forecast shows your future business situation where are you going to earn the money and where are you going to spend them. Estimating the revenue is never easy, but there are some useful tips to be taken into the consideration. Start with expenses, they are easier to predict than income. Try to make two revenue forecasts: the realistic and the optimistic.
Breakeven point - this projection will indicate when the investment on your business is going to be fully returned
Best way to plan your financials is to understand your local market and your client. Donkey Republic can provide the essential list of questions every Donkey partner should answer before starting their business operations.
As the bike renting is mostly serving the tourism industry it’s really good idea to get some statistics on the tourism situation in your area:
How many visitors your town receives a year?
What is the town’s bike capacity (how many bikes are available to rent)?
Find out about your clients:
What are the segments of the visitors (business trips, tourism/leisure, age groups)
Where those visitors are staying? (Hotels, Hostels, Airbnb, B&B’s, Couchsurfing, friends etc.)
How many of those visitors are short term tourists? ( They are most likely to rent a bike).
Do they travel alone or with the group?
How many of the visitors rents a bike?
How much tourist flow depends on the season?
Find out about your competition:
Who runs the bike rentals in town? (the usual suspects are hotels, bike shops and public bike sharing schemes).
What are the market share of each operator?
Return on investment
To ease you business planning process we have made the projections on your returns after investing in 20 Basic Donkey Kits and becoming an official Donkey Republic partner. Buying in bulk allows to drop the price per kit to 80 euro.
20 Basic Donkey kits: 1600 euro. Recommended renting price per day per bike 12 euro. Partner’s share: 9,6 euro.
After donkifying your bikes you can expect to break even after 167 rental days. That means each of your 20 Donkified bikes needs to be rented for a little more than a week (8.33 days) for the Donkification to pay off. Having in mind that in the bike renting business good utilization rate for any given bike is one third of the time, you can expect to get your money back in about a month’s time (of course depending on the location of the hub and the tourism season).
Donkey Republic and the partner negotiate the appropriate price for the 24 hours of rent in the partners market / city. We offer rentals for 2 hours, 6 hours, 12 hours, 24 hours and up to 30 days. The prices for all the other time options than 24 hours is fixed by a static index set by Donkey Republic. The bike owner can however set prices for non-standard bikes.
The revenue is divided between Donkey Republic and the Bike Owners. Bike Owners receive 80 percent of the revenue. Donkey Republic receive the 20 percent share. The same proportion is applied to relocation fees and charges for the stolen bikes.
Revenue from the deals made with the affiliates such as hotels, airlines and bus lines will be split at the same proportion (80%-20%) after deducting the affiliate’s share. For example if Hotel takes 10% from each rider they bring, and the rent is 12 euros, Hotel receives 1.2 euro. The rest of the 10.8 euro is shared accordingly: partners cut is 80% which is 8.64 euro, Donkey Republic takes 20% which is 2.16 euro.