So, Ive been renting motorbikes here in SanPedro for the last three months and I thought Id share what Ive learned thus far.
This is what "stuff" I have:
1x 200cc Pegaso (Suzuki) Trail Bike (purchased very nearly new)
2x 125cc Honda CGL125-TP Utility Bikes (purchased new from dealer)
1x 100cc Yamaha BWS Scooter (purchased VERY used!- 2002 model)
3x Helmets - open face, Large size, good quality.
1x Cell Phone
2x Roadside advertising boards
1x Sun Umbrella
2x Plastic chairs
1x 2.5gal fuel container
Several Advertising/Liability/Information documents.
And thats about it.
I have no business license, I have no insurance (yes I have thought about the consequences of this for both me and the clients).
I hold a client passport as security before I let them take the bike - and have not had any problems with this.
I require the client to sign a liability waiver before I rent them a bike.
I give all clients a good verbal description of where they can go and what they should expect of traffic and conditions.
I give all clients a little map of the towns and distances.
I am always available on-call to solve whatever problems they have while out on the bikes (no charge).
..This includes coming and getting them if they get lost, or swapping out a bike with problems... So far this has only meant telling them how to start a bike that wont start over the phone - Put the red switch on the right hand side in the down position and try it again :)
Driving Conditions:
There are only about three roads that people can drive along here. They total only about 50Km in length and are all very tranquil as far as other traffic is concerned. They are however steep and in poor condition. There have been absolutely no serious incidents: Accidents at speed, or involving other people/vehicles etc. I have had about 3-4 people fall off the bikes at very slow speeds in the dirt - which I of course warned them about:) - scraped knee/elbow was the worst of it for the people and very minor scrapes for the bikes - no I didnt charge them for damage :).
I have (just guessing) over 95% of clients return having had a wonderful time (just beaming!) and thats what I aim for.
The Client Base:
San Pedro is probably the second largest tourist town on Lake Attitlan.
Lake Attitlan is one of probably about 4-5 main tourist destinations in Guatemala.
Im just guessing, but I'd say 75% of the tourists are in their twenties and 65% are in the very cheap category.
Tourists stay in the town from anywhere between a day or two and a month.
Most renters seem to be here for a week or two.
Costs of Living for tourists are:
Accommodation: cheap = 30Q per night, expensive = 100Q per night
Food: cheap = 20Q per meal, expensive = 70Q per meal
Drinks: coffee = 6Q, Soft Drink = 4-7Q, Beer = 10-17Q
So, If you live cheap, you can get by on about 100Q per day (8Q=$1US).
Bike Rentals:
For the 125cc bikes, I charge 50Q per hour or 150Q per half day (5 hours).
I charge a bit more for the big bike and a bit less for the scooter.
Fuel and helmets are included at no extra charge and the bikes can carry two people well enough.
...But, on the whole, this still makes motorbike renting quite expensive.
I pay 10% of my rental income to whoever brings in the client, or to the hotel where the bikes are parked for space rental.
Fuel and maintenance costs are about 15% of my income (so far).
About 80% of rentals are for a half day, and thats the the most fun option and best value.
The other 20% rent for one or two hours only, and they are in some sort of a hurry for one reason or another.
About 75% of the rentals are with two people on the bike.
Most rentals seem to travel about 40Km (max 80, min 25)
About 20% of renters use the free helmets.
Experimenting:
1) I have tried larger and smaller bikes:
The larger 200cc bike is definitely popular with the young men...but its also those same young men who work the bikes the hardest and are the most likely to have accidents (once so far). I only rent this bike out to people who I know can ride well...I broke that rule once and the second time the guy rented from me, he fell off and scraped things up!
This bike is too tall for smaller people to easily ride, but it has good power for climbing the steep hills with two people.
Mostly, I use this bike for myself...guiding and running around town etc.
The smaller 125cc bikes are great for most renters. They are small and light and not intimidating. They are not tall and even smaller women can stand over them with both feet on the ground. They carry two people OK and are lots of fun but dont have much spare power and its hard to "get your self into trouble" with them. The only down side is that they are a bit low on power when carrying two people up the steep hills and this means their clutches get a real hard time!
The little scooter is new to the fleet but is already popular. It can carry two people on the flatter roads but not on the steep stuff. It is VERY easy to drive since it is automatic and has no clutch. The down side of this is that the brakes get a real hard time coming down the long hills since the engine cant be used to do the braking - seems unavoidable that either the clutch or the brakes take a hit! The scooter does however open up the option of renting to people who are completely inexperienced or intimidated by bikes...increasing the available market :)
The scooter I got is very old and worn, so I am yet to see what the repair/maintenance issues with it will be...
2) I have tried advertising.
Ive stuck up notices in restaurants and travel agents and Spanish schools and little shops all over town.
Ive put little fliers on restaurant tables. I offer 10% commission to anyone who brings in a client... But in truth, none of it seems to make a difference! Only about 1 in 20 clients comes from these sources... so Ive more or less stopped putting effort in here.
I have not set up a business web site for the rental business but my sense is that people do not surf the web for things to do while here.
They do look in their "lonely Planet" or "Footprint" guide books, but I aint there ....Yet :)
3) I have tried attending the bikes.
For a month there, I sat with the bikes from 10am till 2pm every day so that I could answer questions immediately when someone asked. Again, this made no difference and I have stopped doing it.
4) I have tried different rental locations.
I have had the bikes parked in three different locations and have found this does matter. I am not yet located where I want to be, so I can still improve this, but it will take time since I need to convince one of a couple of people to let me rent some space on their land and build/renovate a little shelter. This is Guatemala and getting people to "do something" is a slow process.
What Works:
What actually makes people stop and rent?
Well, it seems that the recipe is as follows:
1) The bikes them selves are the biggest factor. About 19 out of 20 rentals come from the place where the bikes are standing during the day. The more bikes and the cleaner and better presented they are the better!
2) Location... Having the bikes in a location where people walk past them all the time (the more people and the more often, the better) is best.
3) Somebody in close proximity (but not necessarily attending the bikes directly) to take first contact and to call me immediately matters. Most tourists dont have cell phones and when they look at the bike and want to know more details, someone needs to be there. So, I have the bikes outside or next to a local business. When people have questions, the business owner answers a few things in Spanish and then calls me. Im never more than five minutes away and I come and do the detailed chat in English ...and thats important since most tourists are far better at English than Spanish... If I had my own space and someone else to help me rent the bikes then they would need to speak English.
4) The street-side Notice boards seem to also matter. Smaller signs on the bikes do not seem to clearly indicate that the tourists should "ask about the bikes here". It seems you need a sign telling them to do so! So, I have one of these with the bikes that gives the basic prices and says "Ask Inside" so it is not business specific.
I have another that I put at a high pedestrian tourist traffic point saying "Bike rentals 100m this way".
And thats about what we know so far!
