Rental Start Up

[andres]

I went to Montreal this vacation and rented a Seg for the first time. I found it superb!

I'm analyzing the possibility about opening a rental place here in Miami. Can anybody give me some pointers on what the legal/liabilities/capital requirements are?

Thank you,
Andres

[pam]

I think that if you do a search on rentals, or just go through the rental posts in this forum, you'll find that the consensus is that guided tours are the way to go - that flat rentals (where you let people take the HT and go on their way) tend to cause problems for the rental operators. We had one man is S. Fla lose 2 units to people who gave him fake drivers licenses, and people tend to just overuse them and return them damaged. I'm sure others will be happy to jump in with opinions, but I do recommend you go through the posts on this forum for insight on things that people have gone through.
Pam

[Florida Ever-Glides]

In Miami, the upfront cost of a Segway related business would be quite high. I imagine around $75,000+. Operating costs could be among the highest in the state (somewhere around $20,000 per month). As a new start-up it would be risky, especially with the legal liabilities associated with the business.

The various spoken languages will be a challenge. Also, the crazy traffic creates additional potential hazards/risks.

As a new, and inexperienced Segway entreprenuer, take a good look before you leap...

Tom Jacobson
http://www.floridaever-glides.com

[Stewbonz]

A Mom & Pop Segway Tour Company in Miami will need to spend $240,000 per year to break even ?



JEFF JARVIS
http://www.thailandsegwaytours.com/

[pam]

Yes, I think that sounds overly pessimistic. It would be great, when you get your figures together by assessing what the upfront cost of your machines, the rental of facilities, the insurance costs per year, to know what they really are - both upfront and recurring.

Your biggest difficulty might be in finding insurance, but now that the units have been out for 3 years and some of the insurance companies are starting to have a history on them, it might be becoming more available. I definitely would NOT do it without the insurance.

Pam

[Florida Ever-Glides]

Jeff,

Miami is not a mom & pop city. If you opened it as such, the operating costs would kill you. It has recently happened there. I determined it would cost more (in one year) to operate in Miami than my successful mom & pop operation earns in the year.

The high rent alone could be more than you earn in a month ($5,000-$20,000 per month). And thats just the beginning...Everything is very costly and regulated there.

Tom Jacobson
http://www.floridaever-glides.com

[Stewbonz]

There are cheaper nways to get started.

I have a Dutch friend with a bicycle tour company(ABC tours).
Has no office or staff, meets his clients in a coffee shop and chains his bikes up in a parking garage.
He takes 10 12 people out on a bike ride at $30 each. Nice.

JEFF JARVIS
http://www.thailandsegwaytours.com/

[Florida Ever-Glides]

Everything in Miami is regulated to the hilt. You need permits to do anything there. You could never get a business license without a very expensive (rent) location. In other cities it is possible to open on a shoestring, but I have done extensive homework, it can't be done on the 'cheap' in Miami. There are many other cities near Miami that would probably allow operation 'out of a truck', but not Miami.

My figures showed $200,000 annual operating costs to 'do it right'. A very difficult challenge, not recommended for the 'beginner'...

Tom Jacobson
http://www.floridaever-glides.com

[mrleisure]

http://www.bradenton.com/mld/bradenton/business/12166855.htm

http://www.wingnut.com/images/redkey-web-logo-100px.gif (http://theredkey.wingnut.com)

[MarkMc]

Interesting, given previous responses to the initial question.

Mark Mc


Posted on Tue, Jul. 19, 2005

Sarasota Segway tour firm to expand

Florida Ever-Glides opening branch in South Beach

DANA SANCHEZ

Herald Staff Writer


SARASOTA - A company that transports well-balanced tourists by Segway around Sarasota's historic neighborhoods and parks is expanding to a second location in Miami's South Beach.

Florida Ever-Glides opened in downtown Sarasota in 2003 with six self-balancing human transporters, and has since expanded to include 11 transporters.

In South Beach, the company anticipates doing five times more business than on the West Coast, offering five tours a day with 15 people per tour, according to its owner and founder, Tom Jacobson.

Michael Aller, director of tourism and conventions for Miami Beach, said the area doesn't have a slow season, and the Segway-tours concept should do well there.

"I love the idea," Aller said. "It's an inventive, clever, informative way of seeing Miami Beach. South Beach lends itself to avant-garde thinkers."

Florida Ever-Glides claims to be the first in the country to apply the use of Segway transporters to tourism.

In the year-and-a-half since Jacobson has been in business, the idea of using Segway machines for tourism has caught on in 80 U.S. cities, he said.

Since November 2003, the company has taken 6,000 people on tours of Sarasota neighborhoods.

"Segway guided tours are emerging as a little cottage industry," Jacobson said. "It's not like bungee jumping, here today and gone tomorrow. It's perfect transportation for a tour that's too long to walk and too short to drive."

The company's 2.5-hour guided tours will explore South Beach's Art Deco District, charging $65 each to take tourists past the home where Gianni Versace lived, the Florida Jewish Museum, the site of what used to be the old Sixth Street gym where Mohammed Ali worked out in his heyday and past the art deco buildings on Ocean Drive.

Safety and historical significance were the main considerations in picking Miami Beach as the place to expand, Jacobson said.

Florida Ever-Glides first considered Tampa's Ybor City, but found the sidewalk wheelchair cut-outs too narrow, steep and rough. They also considered Madeira Beach and John's Pass.

"When we got to Miami Beach, we saw the sidewalks were an average eight- to 10-feet wide with very safe crossings," Jacobson said. "We realized we could do 90 percent of our tours without crossing streets, plus the Art Deco District is practically unmatched."

Riding on a Segway is an intuitive experience that involves being balanced rather than balancing. Segway machines use gyroscopes to remain level. Tourists receive training prior to departure.

Segway transporters can be used in pedestrian areas up to 12.5 miles per hour.

Jacobson said he plans to expand into a third market next year.

Aller said he approves of the way Jacobson is approaching the tourism business.

"He's taking the necessary steps to doing it properly, building on cement and not on sand," Aller said. "The way he's formulating the business, starting small and letting it grow, I think it will prosper."



Mark McClure

[Florida Ever-Glides]

I wasn't telling the person not to open in Miami, I was just informing them how difficult and expensive it is to operate properly from there. The up front and operating costs are staggering. I am relying 'heavily' on my established reputation and the expertise acquired over the last two years to help overcome the obsticles faced daily. Electric Rentals just closed their doors in Miami because of the difficult challenges in running a successful business there.

Wherever you decide to open a Segway related business, remember there is lots and lots of homework to do. Just ask the ones who simply 'hung a shingle' to see if its easy to be profitable...

Tom Jacobson
http://www.floridaever-glides.com

[waitingallday]

"I am relying 'heavily' on my established reputation and the expertise acquired over the last two years to help overcome the obsticles faced daily."

"My figures showed $200,000 annual operating costs to 'do it right'."

Which one is it? hehe. Make me wonder where the third market is that Tom will discourage you from entering because he's done his homework. :-)

Nancy

[Florida Ever-Glides]

It's both...

Frankly I really don't give a darn where ANYONE cares to open a Segway related business. And, I wish those who do great success. Is all that I'm trying to convey here is that if it was easy and a sure thing, everyone would be doing it. In most places, you cannot just be 'open for business' out of the back of your trunk... And, the Miami area is very very expensive.

Tom Jacobson
http://www.floridaever-glides.com

[SegwayPete]

Pam won't let this through cause she's pro Tom!
I worked in Miami Beach a virtually saved Michael Coburns biz!
You guys are all nuts about the costs,,,especially Tom!
If you want the scoop on Miami Beach call me at 239-464-7849
Cheers
SegwayPete

[pam]

Pam didn't approve it until today because she's been out of town and off the computer since Thursday, although were other mods, supposedly checking in.

Hi, Segway Pete. There's nothing in your post to prevent me from approving it. It's certainly civil.

As with all posts, everyone must take the information they get here, check it out IRL and see if it applies to them.
Pam