- Work "After" Work
- Why the "renting culture" is set to explode
Why the "renting culture" is set to explode
PLUS how companies are making millions off it
GM. This is Work "After" Work, the newsletter that teaches you the 1-2 punch to knocking out your business competition.
(yes, this is my real body…)
Happy hump day, let's jump in:
📲 The rent everything movement
😂 Meme of the day
To the 162 new readers since my last email, Welcome to WAW fam! Happy to have you! 😊
WE HAVE ENTERED THE RENT EVERYTHING ERA
You can now rent anything from the iPhone you use every day to the clothes you wear to work.
Our society is valuing flexibility and convenience over everything else and it's showing.
Two perfect examples:
#1 There are now 44 million renters in the US, up 10% over the past 10 years. People either don't want to own homes or can't afford to.
This subreddit channel r/renting has grown over 950% these past 5 years despite it still being in its infancy stage with a little under 10k members.
#2 Uber, DoorDash, and Amazon are all multi-billion dollar companies that took what already existed (like shopping) and made it ultra-convenient with one click of a button.
Renting comes in all shapes and sizes.
College students spend roughly $1,300/yr on textbooks.
Chegg saw this opportunity, started renting out books for as low as $6.50, and last year did $106 million off textbook rentals.
And from the looks of it, they're going to make a whole lot more. The e-textbook rental industry is expected to grow by 21% over the next 5 years to $535 million.
This is just one niche that's making millions.
This trend is so large, you can make money in a lot of different ways.
Here are two:
1. Jump into the travel game
For all the infrequent flyers out there who need a suitcase but don't want to buy one for a one-off trip... create a rental suitcase service.
How would it work?
Your customer needs a suitcase in 3 days. The day before their suitcase gets dropped off for them to pack up.
They tell the app how long their trip will be and one day after their return someone comes to pick it up and brings it back to storage. A pretty simple service. Run it like an Uber (pay others to do the work for you)
You could even build a nice side data business (my favorite) off this and sell customer travel patterns/behaviors.
This business would kill in somewhere like New York City where people literally live in 300 sq ft studio apartments where they can barely fit a twin-sized bed, let alone an empty suitcase.
(yes, this picture is an actual apartment in NYC)
Bags4days does this in Portugal and charges $3 - $10 a day. Do the same thing and target big cities where space is limited:
New York City
Once this service is nationwide it would also greatly benefit nomads (people who move from place to place frequently) a trend we talked about that is massively growing.
2. Rent out everyday items
How does the site work?
You can rent out the new iPhone for 12 months until you're ready for an upgrade. Then you return it and Grover puts it back on the site to be rented again. Simple, easy.
What's crazy is the site has 2 million registered users and 250,000 active customers (aka the people who are always on the site)
This is bonkers to me because at first, it seemed silly. Why would someone rent out a phone every month?
But when I started to think about all the people who always buy the new iPhone or simply can't afford one, it makes sense.
A new iPhone will cost over $1,000 but renting it out for $60/mo only brings you to $720 until you're ready for a new one again.
So, for someone who always has to have the latest and greatest tech, you’re actually saving a lot of money and that’s why these companies are doing so well.
Not to mention people just have less money right now with prices inflating.. another reason this renting everything cycle will continue.
So how can you profit from this?
Grover does electronics, copy their playbook but go after a different niche.
Here are 4 to consider:
#1 Designer Clothing
On average we declutter our closets at least 3 times a year.
Do the same thing but only rent out expensive clothes people want to wear.
Example: A Supreme hoodie or Gucci Shirt
#2 Power Tools
They also do smaller items like drills but when I tried to rent a simple heat gun it said "unavailable in your area" and I live in a popular Chicago suburb.
Moral of the story: dominate your area and you'll beat the big guys.
Try saws, jackhammers, augers - all the things people need for one-off jobs, and won't make sense for them to buy.
#3 Outdoor Gear
Think camping equipment, skiing gear, kayaks, and stand-up paddle boards.
All things that are seasonal and hard for folks to store year-round. Provide a service where people can rent out a tent or kayak for $20/day instead of buying one for $300. Maybe it even gets delivered to them, you choose!
#4 Musical Instruments
Many people want to learn a new instrument but an electric guitar, for example, will run you $600 - $900.
Create a platform where people can rent out musical instruments and only pay $25 a month. Something that doesn't tug on their heartstrings (see what I did there 😏)
MEME OF THE DAY
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That's a wrap ladies & gents!
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.