Make Extra Money Renting Handbags and Purses

Starting a Rent a Designer Handbag Business
By Skip McGrath, Head Geezer

All your life you have loved purses. Big ones, little ones, unique ones, designer ones, it did not matter; you just had to buy it. Now you have a closet full of designer handbags.

They held memories, carried everything you ever needed, maybe even kept you out of trouble, but they are beginning to take over. There is no more room for them. This solution may be just the thing to allow you to keep them and make some money at the same time!

If this sounds like you, then you would also benefit from starting a purse rental. What could be better than lending out and borrowing designer or even funky bags! You are not the only woman in your neighborhood that likes to look fashionable. The problem is in the original cost of the bag, especially if you are only going to use it once for a special occasion!

How It Works

This business works with used handbags you now own or you can buy new ones. Imagine being able to buy a new Channel handbag and write off the cost against your taxes as a business expense?

You could rent out purses individually, but there are other options. Charging a membership could be the answer. You could make several levels of membership depending on how often the members want to borrow, or how expensive the collection is that they borrow from.

You could allow the members to keep the purse as long as they want, return it, and then borrow a new one. You would not have to keep track of late fees, just membership details. You could also offer to let the members buy any bag that they cannot bear to give back! By offering membership to your current purse selections, you will be able to add to your collection without feeling guilty!

For a basic membership, allow them only one purse at a time. If they wish to borrow more than one bag, offer a premium membership.

If a member wants to purchase a bag, you can review such factors as who the designer is, the availability of a new one, the length of time they have been a member, your initial cost, and the age of the bag. If they agree to the price you quote, you can then arrange payment.

You don't have to limit your business to used or old purses.  Once you have a membership base, you can buy designer handbags from the outlet stores -such as the Coach Outlet stores at outlet malls. Another source for wholesale designer handbags is Magazzino Italiano at http://www.luxurymagazzino.com.

Advantages to Borrowing

Your members will never have to worry about having the latest designs. Instead of having their closets full of out-of-date bags, they will be able to borrow what they want and then borrow a new one when they are tired of the one they have.

If a member has a black-tie or very dressy event to go to, they do not want to spend money for a new evening bag just to have it sit in their closet after the evening is over. Instead they can borrow an evening bag and return it in a day or two saving them money.

If a member is going on vacation and would love to have a hot designer bag to carry, they could borrow one and return it after vacation.

A member's teenage daughter is starting to get fashion conscious and she wants to borrow some a purse. The member could upgrade and allow the daughter to borrow some of your old trendy bags from when you were younger!

Some women would carry a different bag every day, if they could afford to. With your purse rental service they could do so with no problem! The monthly membership fee would allow them to have unlimited bags as long as they return the one they are done with.

How to Get Started

If you have a computer, use either Publisher or Word to create a flyer with your new membership program information. Both software products make it easy to put little tabs on the bottom that you can put your name and phone number on. This way they can tear it off and call you later. Print the flyer on some bright colored paper to catch the eye.

Now, go around to the local beauty shops, grocery stores, Laundromats, anywhere where they have a bulletin board. If they don't have a bulletin board, ask them if you can post it inside their store.

In the meantime, make up some membership agreements detailing the terms for rental: Membership prices, fees for damaged purses, etc. Print up several, along with a membership form that includes a blank space for their name, address, phone number, level of membership, price of membership, and a place for their signature and date.

Later you can make up an index card to place in a file in alphabetical order. Leave a space on the index card so you can put the purse rental information with the date they rented it. This way you will always know which purse they have. Assign a number or other identification to each purse in stock. Use this information whenever someone borrows a purse.

Once you get the business started locally and start generating cash flow, you can now turn to the Internet and start an internet-based membership site (see below for resources on how to do this).

Helpful Resources:

• Build a membership website with XsitePro
• http://www.sba.gov/smallbusinessplanner/index.html