Monday, January 25, 2016

Inside NYC’s Bouncy-House Business Boom

Anthony Amoruso is the proud owner of some of the finest, indoor bounce house for sale in New York. On a recent morning, he observed his holdings along a block of West 16th Street: a boxing arena, an oversize slide and an entire tropical island complete with palm trees and a climbing wall.

And that’s just a sampling of his kingdom. At the Staten Island headquarters of his business, New York Party Peoples (aka A Total Jump), he tends more than 50 castles, mansions and obstacle courses, not to mention a shooting gallery, a giant pumpkin and a 30-foot SpongeBob slip-n-slide.

These are, of course, inflatable amusements—bounce houses that schools, block associations and churches rent by the hour so kids can go completely bonkers without cracking their skulls.

On a recent morning, Mr. Amoruso, who is 72, is providing street fair fun for Xavier High School’s annual pride day. It’s a big production requiring five huge inflatables and a crew of nine. More information.

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A diminutive Italian with a burbling giggle, Mr. Amoruso points out his latest acquisition: an $8,000 “Wipeout” bounce house modeled after the popular TV game show. He believes it’s the only inflatable of its kind in the city.

That’s important. Competition in the bouncy-castle business has grown fierce. The Department of Consumer Affairs says that since 2010, the number of licensed “portable amusement devices” in the city grew 55%, to 604.

Anthony Amoruso is the proud owner of some of the finest, bounciest properties in New York. On a recent morning, he observed his holdings along a block of West 16th Street: a boxing arena, an oversize slide and an entire tropical island complete with palm trees and a climbing wall.

And that’s just a sampling of his kingdom. At the Staten Island headquarters of his business, New York Party Peoples (aka A Total Jump), he tends more than 50 castles, mansions and obstacle courses, not to mention a shooting gallery, a giant pumpkin and a 30-foot SpongeBob slip-n-slide.

These are, of course, inflatable amusements—bounce houses that schools, block associations and churches rent by the hour so kids can go completely bonkers without cracking their skulls.

On a recent morning, Mr. Amoruso, who is 72, is providing street fair fun for Xavier High School’s annual pride day. It’s a big production requiring five huge inflatables and a crew of nine.

A diminutive Italian with a burbling giggle, Mr. Amoruso points out his latest acquisition: an $8,000 “Wipeout” bounce house modeled after the popular TV game show. He believes it’s the only inflatable of its kind in the city.

That’s important. Competition in the inflatable camping tent manufacturers-castle business has grown fierce. The Department of Consumer Affairs says that since 2010, the number of licensed “portable amusement devices” in the city grew 55%, to 604.

Mr. Amoruso, who can talk for hours about safety, says he can’t compete on price with “pirate” operations, as he calls them, that may operate without a license, skirt city law requiring a $1 million insurance policy, and offer unattended drop-off rentals for $200 a day.

“Cats and dogs, anyone can start a business,” he laments.

By comparison, his rates—starting at $300 for the first two hours, per inflatable—sound high. That’s because his costs are high. With an eye on safety, he spends up to $200 a day, per man, for his crew of seasoned attendants. He rents his own warehouse/office space. Insurance runs $40,000 a year.

Greg Miller, owner of Internet retailer Bounce Houses Now, says a basic, commercial-grade 15x15-foot bouncy castle—ideal for a startup—runs about $1,700. Insurance might cost another $2,000. Throw in sandbags, stakes and a gallon of vinyl cleaner and you’re set to go.

John Taylor launched NYKidstime in 2003 to earn extra money on weekends. He started with a used, 20x20-foot castle and hung fliers around his Rockaway Beach neighborhood.

While he still works full time as a salesman, he serves 30 to 40 parties a year around Brooklyn and Queens with a fleet of 20 inflatables he stores in his garage along with a dunk tank, snow-cone machine and cotton-candy cart.

He’s a one-man operation. At rates starting at $265 for two hours, he’ll show up at a home or block party with the bouncy castle of your choice, set it up and tend to the kids.

The job is physically demanding. Larger inflatables, like his 50-foot “fortress” obstacle course, weigh more than 500 pounds.

“You get the same children at every party,” says Mr. Taylor. “The one who asks a thousand questions, the kid who giggles the whole time, the kid who’s going to grow up to become a lawyer.”

Huntington, N.Y., insurance broker Michael LaSorsa, whose clients include about 30 bounce-house businesses, says Mr. Taylor’s operation is typical. Many are part-timers who earn $10,000 to $15,000 a year—parents who start the business when their kids are young and save the earnings for college.

And demand keeps growing, says Margaret Fescina, senior event coordinator of NY Party Works, a Long Island outfit offering more than 150 inflatables. The newest twist? Bouncy castles for adults.

NY Party Works increasingly rents inflatables at corporate events, says Ms. Fescina, as tech startups and Fortune 500 companies seek novel ways to entertain employees.

Imagine bouncing around with co-workers after a couple drinks. Bob from accounting will never look the same.

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