Inflatable Business Statistics: Q&A With a Jump Center Owner
Recently, I received an e-mail from a member who was disappointed that overall industry statistics were not available on the membership site. The main reason you don’t see overall statistics has a lot to do with the age of this industry. Indoor Jump Centers have been operating for less than 10 years (for the most part) and many of the statistics do not exist. At least not a formal study, that is available to the public. One way to gain this information is to have a professional feasibility study conducted. This is not a low budget item. The companies I have spoken with, start at about $10,000. I am sure they are worth the money; I just know that I did not have that in my budget when I began my center.
Instead, I chose to conduct my own study. This began with the basic research you will find in the start-up articles on the site. Yes, I actually took the time to do those items! I also relied upon my instinct. I was convinced that this was a good, viable industry that was just getting started, and I wanted in on it!
After searching long and hard I located a start-up franchise, with only a couple of locations actually open. I also found three sole proprietor centers located in Nevada, New Orleans, & Jacksonville, Fl. I attended the discovery day for the franchise and discovered quickly that I was not franchisee material. I then began contacting the other centers. Out of the three, only the owner of one location was willing to help me gather the information needed to open my center. She was a blessing!
Since opening my first center in 2004, I have been inundated with others wanting to open centers, and thus the creation of JumpCenterAdvice.com. I remember how hard it was to start. So, to make a long story short, in addition to running my two centers, I also try to provide others with the information they need to open and successfully run their own center.
Below are a few specific industry questions I will answer in this article. My disclaimer is as follows: The answers here are based on the three years experience I’ve gained from opening and operating my jump centers. This is in no way a guarantee of success for anyone planning to open a jump center. These answers are based upon the following area demographics: I live in Charleston, SC, with an overall population of 300,000. The first center I opened is 12,000 square feet; we have two jump arenas, two cake rooms and a large lobby with arcade games. I serve simple foods, chips, ice cream, fries, nuggets, etc.
Q: What is the level of repeat business to expect?
My repeat business is strong, around 80% or higher. I have parties being booked for the 3rd year in a row. My open jump time remains popular, with many customers being “members” to save money. I will say that our level of repeat business is due to the high level of customer service we provide.
Q: What is the average length of time a customer stays?
This question is referring to open play. I would say it varies by age. The younger jumpers (under 6 yrs) stay about 1-2 hours per visit. I have older kids (7 yrs and up) stay 3-4 hours. I do not limit their jump time. Why would you want to run a customer off after only one hour? We want them to stay as long as possible! The longer they are in the building, the more money they spend. I’ve never had any problems with overcrowding. Most kids will jump a few minutes, stop and play games for a while, jump some more, stop and eat/drink. It is a cycle. And the old rule still applies: The busier a business seems to the public, the busier it will become. People attract people.
Q: Market size (do you pull from a 5 mile, 10 mile, 50 mile radius)?
I live in an area that the residents think driving more than 5 miles from home is leaving the state. So, five to ten miles is the average for my centers.
Q: What population density should I target?
This will depend upon your region and the average income level you plan to attract. Living in a large city (population 1mil+) will allow a broader range. I live in a small city (under 500,000) so I target around 50,000-75,000 with a median income level of $30,000 and higher.
Q: How many facilities can be supported by a population (of 500,000 for example)?
This depends on how well the centers run their business and what they do to advertise. My center now competes with three other jump centers. None have hurt my business, they each pool from a different area, or a different income level.
Q: What is a realistic expectation of pull from a population?
If there is 50,000 kids between ages 2-7 what percentage can you expect to draw? What does the family entertainment or children’s entertainment industry average on a whole?
This question poses a big variable. It will depend upon your focus. Are your inflatables/attractions going to be large enough for young and older kids? Are you planning to theme it (kiddie characters, or general decorations)? My center draws all ages. I chose to attract as broad an age group as possible, especially since my population is smaller. The highest draw is 4-12 years old. We offer a teen night weekly, jr. jump for those under 6, and even attract adult parties.
Q: Are there high and low seasons?
Yes. All businesses have some sort of season. The season will depend upon your location, your weather, and other local factors for your region. My centers are the busiest during the school year. Summer numbers decline, with June being the slowest month. Why? Well, I live on the coast. June is beach month for the locals, also pool parties explode, and then of course the vacationers go out of town. We have learned to prepare and enjoy this time. It allows us a bit of a break, we can perform routine maintenance, and we prepare for July and the heat & humidity to run everyone back indoors. We start marketing to summer camps in February. Most of which in our area do field trips weekly, and we are one of the most popular destinations. We also target the tourists that come to town. All it takes is learning from experience. We almost had a heart attack the first summer! Luckily, we had saved money for “a rainy day” and were able to endure, and LEARN. The best lessons are the hard ones.
-Submitted 5/2007 by Loretta Hardy, Ready-Set-Jump
This article is a start and covers just a few of the major questions asked. Remember there is no such thing as too much research. If there is something you would like to contribute you are always welcome to email InflatableStartup.com at: info@inflatablestartup.com