I'm in the wrong business

WickedLou9 · 11-05-2007, 01:59 PM

So I was in my friends wedding this weekend. Everything went well and good times were had by all. As I was driving to the mall to return my rental Tuxedo I glanced down at my recipt and started crunching some rough numbers in my head because I am a geek and that's what I do.

to rent the tuxedo for 4 days ( counting the day I return it as the 4th day), it cost me 145 dollars. Thats about 35 dollars a day give or take right?
It costs maybe 300 dollars to actually buy a tux of similar quality which is not very high. So in two weekends, your rental tux has paid for itself. subtract maybe 5 dollars a week for dry cleaning and what not. After 2 weeks it's pure profit.
The last time I had to rent a car when my old Mustang was in the shop, which it was quite often I might add, It cost me roughly the same on a per day basis to rent a new Toyota Corolla. The Corolla costs what, 13 grand for a stripped down base model? at 35 dollars a day. If you assume that the car is being rented continually every day it would take over a year for it to pay it self off and begin to turn a profit. Add into that maintenance and repairs and it probably takes several years to pay the car off.

So that brings me back to the tuxedo rental. I'm definately in the wrong business.
For the same capital outlay of buying a car you could buy 100 tuxes in various sizes and configurations and if you even rented half of them out you would make back your money in a matter of months and start earning profit.

Linzyhop · 11-05-2007, 02:10 PM

maybe you should just be a mathematician.

Stylerod · 11-05-2007, 02:12 PM

Originally Posted by WickedLou9

So I was in my friends wedding this weekend. Everything went well and good times were had by all. As I was driving to the mall to return my rental Tuxedo I glanced down at my recipt and started crunching some rough numbers in my head because I am a geek and that's what I do.

to rent the tuxedo for 4 days ( counting the day I return it as the 4th day), it cost me 145 dollars. Thats about 35 dollars a day give or take right?
It costs maybe 300 dollars to actually buy a tux of similar quality which is not very high. So in two weekends, your rental tux has paid for itself. subtract maybe 5 dollars a week for dry cleaning and what not. After 2 weeks it's pure profit.
The last time I had to rent a car when my old Mustang was in the shop, which it was quite often I might add, It cost me roughly the same on a per day basis to rent a new Toyota Corolla. The Corolla costs what, 13 grand for a stripped down base model? at 35 dollars a day. If you assume that the car is being rented continually every day it would take over a year for it to pay it self off and begin to turn a profit. Add into that maintenance and repairs and it probably takes several years to pay the car off.

So that brings me back to the tuxedo rental. I'm definately in the wrong business.
For the same capital outlay of buying a car you could buy 100 tuxes in various sizes and configurations and if you even rented half of them out you would make back your money in a matter of months and start earning profit.

Yeah. But don't forget at least a few thousand a month rent and also paying for employees. There is quite a bit of overhead besides the end product you are renting out.

WickedLou9 · 11-05-2007, 02:40 PM

Originally Posted by Stylerod

Yeah. But don't forget at least a few thousand a month rent and also paying for employees. There is quite a bit of overhead besides the end product you are renting out.

Even so it's minimal compared to other businesses. You rent out a tiny cubby in the mall and hire some half wit to take the orders. I imagine that they have some warehouse where the tuxes are stored and shipped from and stuff, but it's clothing so you probably don't need lots of space.

David Octavius · 11-05-2007, 03:15 PM

Lets assume you get a great deal and rent out a decent size space out of a mall that gets decent foot traffic for $1,500 a month (NY based pricing here). You hire 2 full time employees for $10 an hour and you have one Taylor to make adjustments for $12 an hour for a typical 40 hour week.

In a month:

Employees = $5,120
Rent = $1,500
Insurance = $300 (cheap)
Taxes for employees = $1000 (cheap in NY)
In store maintaince, small scale advertising = $300

Total = $8,220 per month

So if you buy 100 tux at $300 a pop that is $30,000 by your figures - you
said you would rent out half per month at say $35 a day, lets assume the average rental period is 4 days that would equal:

Income - $7,000

That does even take into account seasonality - where you may only rent out 40 in a month.

Sorry dude - but it looks like you would be out of business within a year

WickedLou9 · 11-05-2007, 03:59 PM

Originally Posted by David Octavius

Lets assume you get a great deal and rent out a decent size space out of a mall that gets decent foot traffic for $1,500 a month (NY based pricing here). You hire 2 full time employees for $10 an hour and you have one Taylor to make adjustments for $12 an hour for a typical 40 hour week.

In a month:

Employees = $5,120
Rent = $1,500
Insurance = $300 (cheap)
Taxes for employees = $1000 (cheap in NY)
In store maintaince, small scale advertising = $300

Total = $8,220 per month

So if you buy 100 tux at $300 a pop that is $30,000 by your figures - you
said you would rent out half per month at say $35 a day, lets assume the average rental period is 4 days that would equal:

Income - $7,000

That does even take into account seasonality - where you may only rent out 40 in a month.

Sorry dude - but it looks like you would be out of business within a year

Well these companies are certainly making money or they would not be in business. I found a link somewhere about The Men's Wearhouse buying out After Hours Formal Wear and how it would boost thier profits considerably.

Ardentfrost · 11-05-2007, 05:04 PM

Well, I guess After Hours is privately owned b/c I can't find any financial info on them

WickedLou9 · 11-05-2007, 05:09 PM

Originally Posted by Ardentfrost

Well, I guess After Hours is privately owned b/c I can't find any financial info on them

They are now part of "The Men's Wearhouse. " They were acquired back in May of this year I think.

Men's Wearhouse Second Quarter Earnings Call - Earnings calls

Men’s Wearhouse reported revenue increase of 24% to $569.3 million, helped by 4% increase in apparel sales and the tripling of the company''s tuxedo rental revenue, helped by the After Hours acquisition. Excluding After Hours, tuxedo rental sales increased 16%. Same-store sales for the company''s U.S.-based stores increased 1%, helped by the growth of the company''s tuxedo rental business. For Q3, the company expects earnings per share in the range of 70 cents to 73 cents.

DosEquis · 11-05-2007, 05:16 PM

Yeah, but you'd be stuck wearing the same tux to everything...

Here is lou 9/20/2007 at this wedding
Here is lou 10/30/2007
Here is lou 12/21/2007

Wierd...he looks the same!

Ardentfrost · 11-05-2007, 05:56 PM

Originally Posted by WickedLou9

They are now part of "The Men's Wearhouse. " They were acquired back in May of this year I think.

Men's Wearhouse Second Quarter Earnings Call - Earnings calls

I'd still expect to see a history.

RMNIXON · 11-05-2007, 06:22 PM

What did the Wedding Cost?

I hear that is where the real money is these days!

David Octavius · 11-05-2007, 09:00 PM

Originally Posted by WickedLou9

Well these companies are certainly making money or they would not be in business. I found a link somewhere about The Men's Wearhouse buying out After Hours Formal Wear and how it would boost thier profits considerably.

I'm just going by your numbers..besides Men's Warehouse core business is not Tuxes but suits, which give them the capital, the space and the resources necessary to build a succesful tux rental line

WickedLou9 · 11-06-2007, 07:09 AM

Originally Posted by David Octavius

I'm just going by your numbers..besides Men's Warehouse core business is not Tuxes but suits, which give them the capital, the space and the resources necessary to build a succesful tux rental line

So you are unaware that there are tuxedo rental chains all over the US aparently making money?

WickedLou9 · 11-06-2007, 07:10 AM

Originally Posted by RMNIXON

What did the Wedding Cost?

I hear that is where the real money is these days!

Seriously. I don't know how much the couple spent but I know how much our wedding was. It's a shame really. These days people should be using that cash for a downpayment on a house or something but they spend 30 grand on a wedding instead.

David Octavius · 11-06-2007, 09:47 AM

Originally Posted by WickedLou9

So you are unaware that there are tuxedo rental chains all over the US aparently making money?

I guess your unaware that most small business fail within a year? And that number includes - gasp - tuxedo rental places

Dude I am not trying to shit on your idea, but if your numbers don't work they don't work - either come up with better numbers or realize that you are not in the wrong business

Ardentfrost · 11-06-2007, 10:14 AM

I want to be in the wire packaging business. Those things are marked up over 1000% in places like CompUSA and Best Buy and shit.

Linzyhop · 11-06-2007, 10:33 AM

anybody know where I can get a home video transferred from VHS onto DVD? i know best buy does it, but they're wicked expensive..... i'm looking to get one home video transferred and copied onto multiple dvds before christmas.

WickedLou9 · 11-06-2007, 11:04 AM

Originally Posted by David Octavius

I guess your unaware that most small business fail within a year? And that number includes - gasp - tuxedo rental places

Dude I am not trying to shit on your idea, but if your numbers don't work they don't work - either come up with better numbers or realize that you are not in the wrong business

So you are saying that the tuxedo rental business is a bad idea that won't make money despite the fact that there are thousands of successful such businesses all over the country. I think your problem is with the rough numbers that I did in my head while driving to the mall... ?

David Octavius · 11-06-2007, 11:34 AM

Originally Posted by WickedLou9

So you are saying that the tuxedo rental business is a bad idea that won't make money despite the fact that there are thousands of successful such businesses all over the country. I think your problem is with the rough numbers that I did in my head while driving to the mall... ?

Its a fact? Where is your back up? Thousands of tuxedo only rental business that are successful (ie profitable)

And no I am not saying its a bad idea, I keep saying in my posts that YOUR numbers are off not the idea, I figured you would of understood that without me having to spell it out

WickedLou9 · 11-06-2007, 12:33 PM

Originally Posted by David Octavius

Its a fact? Where is your back up? Thousands of tuxedo only rental business that are successful (ie profitable)

And no I am not saying its a bad idea, I keep saying in my posts that YOUR numbers are off not the idea, I figured you would of understood that without me having to spell it out

I"m not going to back it up. This is pointless.