How Much Does Boarding Business Make a Year
How Much Does Boarding Business Make a Year? (2023 Guide)
Around 400k dogs are adopted each year by US people indicating how big the pet industry is. There are a lot of business opportunities for people in the field. One such field is dog boarding. The question all business people want to know is: How much does a dog boarding business make a year?
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Please note that this value is an approximate estimate based on the general capacity of boarding centers, charges for daycare and night stays, number of clients per month, and expenditures per month. This can vary from 1 facility to another.
However, you may follow my method in order to calculate your boarding center's monthly and annual profits. Let us now examine the expenses and revenue of a boarding center in order to better understand how these calculations are made.
Monthly Business Revenue of a Boarding Center
The key factors influencing your income will be your customer base and the fees you charge for both daycare and overnight care. In 2023, the typical cost for a day of daycare is $32, while an overnight stay is priced at $42.
Let's imagine you establish a client base of 15 dogs in need of daycare every day, as their pet owners head to work, and an additional 10 dogs requiring overnight accommodations. By applying these average rates, you would earn 15 times $32 ($480) for daycare services and 10 times $42 ($420) for overnight boarding.
This totals $900 in daily revenue, which equates to $19,800 each month ($900 × 22 working days). It is important to note that you could potentially boost your daily earnings by offering supplementary services such as grooming or training.
However, for the sake of simplicity in this example, we will assume you exclusively operate a daycare and boarding kennel. Now, let's proceed to examine your monthly expenses.
Monthly Expenses of a Boarding Center
The primary cost that dominates the expenditure of a dog boarding business is typically the rental of commercial space and the staffing requirements. Additionally, there are recurring expenses like utility bills and necessary dog supplies.
Both you and your staff will also require health insurance coverage. Let's now dissect these expenses further to gain a comprehensive understanding of ongoing costs.
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Net Annual Profit
Your pre-tax net profit amounts to $19,800 in revenue minus $9,400 in monthly expenses, resulting in a monthly profit of $10,400. When we consider this over the course of 12 months, it translates to an annual profit of $128,400.
Factors Affecting the Price of Dog Boarding Business
Several things can impact how much money a dog boarding business makes. Here are some of the important factors:
- Location: Where the dog boarding place is located matters a lot. If it's in an area where lots of people have pets and there aren't many other boarding options, it can make more money because more people will want to use it.
- Market demand: It is important to check if there are enough people in the area who want dog boarding services. Doing some research to find out if there are plenty of customers who need this service and if there are any gaps in what's available can help set the right prices.
- Pricing: Setting prices that are fair and competitive is crucial. Most dog boarding businesses charge about $42 for a night, so if they have 10 dogs staying overnight, they could make $420. But this can vary depending on where the business is and what the competition is charging.
- Operating costs: Running a dog boarding business costs money. On average, it costs about $9300 a month to run a boarding center. Keeping these costs under control is important to make sure the business makes a profit.
- How many dogs stay: The number of dogs a boarding place can hold and how many stay there can make a big difference in how much money it makes. If it is usually full, it makes more money.
- Making customers happy: Providing good care and good customer service can help the business keep customers and get new ones when happy customers tell their friends.
- Extra services: Offering more services like grooming, training, and daycare can also bring in more money.
Remember that the exact numbers can change based on where the business is, how many people need the service, how much the business charges, what the competition is like, and what other services they offer.
