Is a Trampoline Park a Good Investment?

Entertainment is a prime element of our life. If we talk about kids, indoor playgrounds are one of the best stress-busters. Moreover, indoor playgrounds are becoming pretty popular these days, which has led to a rise in the number of indoor playground franchise opportunities worldwide. As per stats, children entertainment centers are projected to be valued at around $15.37 billion by 2026.

This rapid increase in the market valuation of indoor playgrounds has elevated the competition. Consequently, it has led many business owners to think out of the box. Most of them are focussed on improving customer experience by doing something different. One of the key additions that they are making in their playgrounds is a trampoline park.

Trampoline parks are awesome additions that you can make to your established or new business model. A trampoline park is not just an addition, but you can also establish a trampoline park business itself.

Though it may appear as a lucrative option, many of you might be worried if a trampoline park is one of the profitable businesses or not? If you are also perplexed about the same, this article will be helpful for you!

What is a Trampoline Park?

An indoor trampoline park is a giant space that has several jumping spaces for kids and adults. It consists of a series of connected jumping platforms and some soft toys for kids. A trampoline, however, is equipment for jumping up and down. It is made up of robust material with enough flexibility to handle the jump of an average person. This material is fixed to a metal frame with the help of springs.

If you plan to invest in indoor trampoline parks, it is a great decision. Why?

The digital age has disrupted the normal life of people, which has led them to focus more on physical activities. With a trampoline park business, adults and kids can have fun, but they can also get fit. The jumping platforms of a trampoline park can give them a sense of exercise. Therefore, it is a great revenue stream for a business owner.

What Factors Affect the Success of a Trampoline Park Business?

If you are planning to start your own trampoline park, there are a lot of things to keep in mind. Will it be successful or not depends on various factors.

The services you offer

One of the prime factors that differentiate between a successful and an unsuccessful business is the services offered.

Before you start your own trampoline park business, you need to check what services are necessary. Obviously, there will be a lot of trampolines, but are they going to be enough?

The answer to this useful query is no; you can't just put a couple of trampolines and expect your business to skyrocket. You need to provide some additional services too. As kids will be accompanied by their parents, you also need to have something for them. For example, you can include an area for birthday parties, date nights, and family game activities.

On top of this, you can invest in ninja courses, laser tag,  dodgeball, bowling, and other games to attract more visitors.

To know more about the services, you can begin analyzing your competitors or existing park owners in the area. You can visit their trampoline parks and check what they are offering. The analysis may provide you with an insight into the services that you can offer.

Location:

If you are up for investing in one trampoline park, its success will heavily rely on the location. But, it is not that easy to shortlist one. You need to consider various aspects before choosing a location for your trampoline park.

Population density: Consider this! You have a trampoline park near a residential complex. The population density may be high, but your sales number will be less. In contrast, if you have a trampoline park in a shopping complex or a mall. As a shopping complex has a high population density, you will get more visitors.

Accessibility: If you are building a trampoline park, it is super crucial to ensure that it is at a location that is easily accessible. For instance, you need to make sure that the trampoline park is not a driving distance of more than 15-30 minutes if the population density is greater than 250,000 people.

Some plus points would be:

• If it is possible to reach the park by public transport.
• The park is connected with cycles and footpaths.

Parking space: If you are opting for trampoline park franchises, you need to ensure that it has enough parking space. Based on your analysis of the nearby population density and the size of the trampoline park, you can estimate the size of the parking space required. Having enough parking space can help retain a lot of loyal customers for your trampoline park business.

The ease of ticket booking

If you are the owner of an indoor trampoline park franchise, you can invest in an online booking platform to make it profitable. Online booking is pretty popular today, and many business owners tend to use the internet for online booking. The best thing about online booking is that it offers convenience to the users. Thus, allowing them to know about the ticket status.

Quality and Cleanliness

Imagine a trampoline park where all the trampolines have lost their elasticity and rigidity. Do you think customers will come to the park? No, they won't! The point is, the quality of your trampolines matters a lot. If you want to sustain your business for the long run, make sure that you invest in high-quality trampolines.

On top of this, it is extremely important to maintain cleanliness in the trampoline park. The first thing that customers will check is whether the place is clean or not. If they don't find it clean, they won't even consider entering the premises. Thus, making it essential for you to maintain cleanliness and hygiene in the trampoline park.

You can consider the following methods to keep the trampoline park clean:

• Vacuum clean the park daily.
• Use a damp cloth with a mild detergent disinfectant to clean the surfaces of the equipment.
• Disinfect all the surfaces that witness the maximum hand touches.

Customer service

Last but not least, another indispensable factor that can help you determine whether a trampoline park is a good investment or not is customer service. It is one of the most important aspects that can help you attract and retain customers. If you want to build a successful trampoline park business, make sure that you invest in providing good customer service.

You need to ensure that your customers are happy and satisfied with the services that they are receiving. To do this, you can take feedback from them and work on the areas that need improvement. Also, you need to have a complaint management system in place so that you can address the concerns of the customers in a timely manner.

What Upfront Cost does a Trampoline Park require?

The upfront cost is the initial investment that you have to invest in order to run the business successfully. To get to the cost, you need to develop a business plan. A business plan can help you plan and strategize every step while keeping all the necessary aspects in mind. There are a lot of things where you have to invest to start a trampoline park, such as

• Leasing of the space
• Maintenance
• Trampoline equipment cost
• Labor costs

On top of this, there will be insurance, marketing, and other utilities. The charges do not just end here. After you have established your indoor trampoline park, you have to pay ongoing costs to keep up with the maintenance and servicing. Buildout costs can also add up if you had to demolish a part of the area and build it as per your needs.

If you have also included a restaurant or snacks bar, the total cost further increases. If you have to look at the exact or estimated initial cost, here are some numbers!

1. The equipment required in a trampoline park may include trampoline flooring, toys, basketball hoops, refreshments, and trampoline socks. The total cost of all of these may vary from $50,000 to $100,000.
2. Trampoline park's initial franchise fee can vary from $50,000 to $60,000.
3. Lease and deposits: up to $50,000
4. Licenses and other utilities: $3k to $6k
5. Insurance: $15,000
6. Professional fees: $12,000
7. Initial operating costs: up to $80,000 for three months
8. Advertising and marketing: $25,000+

The total initial cost, including everything, rounds up to $1.2 to $2 million.

Here are some specific cost scenarios:

If only equipment is considered, the average price for a trampoline free jump is around the US $80-100 per square meter. But if you want to add something exercise like a high-performance trampoline, zipline, wipeout, foam pit, the price will be high, like 140-170 per square meter.

Keep in mind that different sizes of trampolines have different price ranges. You need to consult the manufacturer before you place an order.

How much gross revenue can you make with a Trampoline Park?

The gross revenue is the money that you are left with once you have paid for all the other expenses. These expenses include labor costs, ongoing costs, insurance, salaries, etc.

Though there are various aspects that affect the revenue earned, there are some prime examples of trampoline parks that earn over $500,000 as revenue yearly. Some big names in the industry, like Sky zone, also end up earning over $700,000 and even $1 million in revenue.

If you are concerned about the major costs figures after initial cost and before gross revenue, they are insurance premiums, maintenance, and ongoing cost.

Labor costs can be estimated at around 25% of the total revenue, insurance premiums can be 6%, and maintenance cost is close to 25%.

Some of the factors that affect the revenue of the trampoline park business are

The price of the ticket: The price of the ticket is usually between $10-$15. However, it can vary based on the area where your trampoline park is. If it is in a high rent area, the ticket price will be more. It can vary from $20 to $40 per hour. On the other hand, if the trampoline park is in a low rent area, the price of the ticket will be less. It can be around $10-$15 per hour.

The number of customers: The revenue generated by the trampoline park is highly influenced by the number of customers allowed. Most of the parks allow around 30 to 150 customers at a time. For instance, if the session time is of 1 hour, there will be a maximum of 30-150 people inside the park. The traffic at a trampoline park is usually high on the weekend and a bit less on weekdays.

The size and altitude of the park: The revenue generated from the park is somehow proportional to its size and altitude. If you have a bigger trampoline park, the accommodation capacity will be more and thus will be the earnings.

What are the funding options for Trampoline Parks?

It is pretty obvious that if you want to make your trampoline park business successful, you have to invest a lot in it. Therefore, you will need funding in bulk. There are various methods through which you can invest in one trampoline park.

1. Savings: Your savings are the very first thing to start with. However, some of us a reluctant to invest our savings from the fear of failure. But, if you have an effective business plan, you will know how and where the money will be used. Moreover, investing in a trampoline park business will also help you gain the trust of the investors. You can also consider selling your personal assets to support your business. If you are perplexed about investing your savings, you should contact a manufacturer. Some of the best manufacturers offer you a business plan for a risk-free investment.
2. Bank loan: It is highly unlikely that any investor would invest in your business if there are competitors in the market. Therefore, if you don’t have savings for a family entertainment center, you can go for a bank loan. You may have to use your business bank account for that.
3. Credit card: Though it may not provide you with that many funds, you can use your credit card to buy the equipment and toys for your trampoline park. Keep this thing in mind that the interest rate of a credit card is more than a bank loan. Choose the one that offers rewards in exchange for purchases.
4. A micro-loan or SBA loan: Other than a bank loan, you can also opt for a micro-loan or an SBA loan. An SBA loan is the best if you are starting from scratch. You can get around $5 million through an SBA loan, provided all the required conditions are met. A micro-loan is an option if you need money to fill some gaps.
5. Crowdfunding: If you are using crowdfunding to raise money, you need a powerful story to keep the people engaged. Crowdfunding is a great way to gather money for your trampoline business, but you have to promise people something in return.

Should you go for a Trampoline Park Franchise or an Independent Business?

Well, no matter if you opt for a trampoline park franchise or an independent business, you will get potential benefits in both options.

If you opt for a trampoline park of your own, here are some pros and cons you have to bear!

On the other hand, if you opt for taking the franchise of any popular family entertainment center brand like Sky zone, here are some ups and downs of that! 

What are the benefits of an Indoor Trampoline Park?

One of the aspects to analyze about trampoline parks is their benefits. It is pretty obvious that if it has benefits, then only it is a worthy investment. Thankfully, an indoor trampoline park franchise has a plethora of pros.

1. Family-friendly: Trampoline parks are a great outing opportunity for families. They can serve as family entertainment centers as adults, kids, and even their grandparents can spend several hours together.
2. Add-on activities: Having a trampoline park business is also lucrative as it allows people to have some add-on events and fun activities. While kids can play games, you can also organize events like birthday parties, dinner parties, kitties, etc. These events can help both parents and children spend some quality time together.
3. Services: On top of all the other pros, the best upside of a trampoline park is the add-on services like drinks or a restaurant. Though it is not a common practice, it can become a potential source of revenue for you.
4. Large capacity: Unlike other recreation centers, a trampoline park can adjust users in large capacity. A typical custom-built trampoline court can adjust up to 150 individuals. Therefore, if you charge on a per-hour basis, you can sell 150 tickets for an hour.
5. Wide age groups: One key advantage that you can get by making a bigger trampoline park is covering more age groups. Apart from kids, adults and teens also tend to enjoy it a lot. Therefore, dedicating a section to teens and adults can make it better. It can help adults get some health benefits.

What Methods can help you make your Indoor Trampoline Park popular?

The entertainment industry is always undergoing changes. As user interest changes, there is always a need for fresh things. Just like every other type of entertainment, trampoline parks also need to keep up with the trends to retain and acquire new customers.

Better Health Benefits

People today are more inclined toward fun ways to obtain health benefits. Therefore, if you are perplexed between going for a trampoline park or any other family entertainment center, go for a trampoline park. Not just in regards to user interest, but a trampoline park is also a great option keeping in mind the health benefits. Jumping on a trampoline can yield way more benefits than jogging.

Fitness and trampoline training courses are a point of attraction.

There are many people who are focused on their fitness. Therefore, you have a good reason to market your trampoline park. On top of that, if you want to attract more users, you can introduce trampoline training courses. These courses can help in training those who aim to compete in competitions like these.

Additional Activities

If you want to keep your trampoline business profitable for years to come, you need to do more than just trampolines in the park. As you will have people of various other age groups than kids, you need to keep some activities for them too. To keep parents engaged while their kids play on the trampolines, introduce games like laser tag, rock-climbing walls, ninja courses, and basketball hoops.

Online Advertise

If you want to make your trampoline park popular, the best way is to advertise online. You can use various media like social networking sites, posts, ads, etc., to market your business online. You can also offer early bird bonuses to lure people to your park.

Conclusion

So, is a trampoline park a good investment? Yes, it is a great investment for you. There are many reasons for that. Moreover, there are some technicalities too that you need to take care of. Yes, the initial costs will be overwhelming, but if you have a solid business plan, you can sail through easily. After that, there are just some minor investments and lumpsum revenue. However, make a budget plan to manage your money and keep an eye on the latest trends to ensure the longevity of your business.

In a nutshell, a trampoline park business is one of the best investments to make. In a world where almost every entertainment source is digital, a trampoline park can be a great recreational spot for people.