Industry Overview

Our business is driven by a universal love of parties and entertaining; the convenience of renting and not having to do the dishes; disposable products; strong and dramatic seasonal growth (witness the strength of Halloween and the growing demand for luau and Mardi Gras and outdoor wedding and parties) and the ongoing special events in our lives such as birthdays, weddings and showers. The Party Rental and Sales industry is only about 15 years old. Many of the rental operators are family businesses and have been in the business for some time and operate out of a warehouse in an industrial part of town. Most do not have good inventory selection or good marketing programs. Almost all, do not carry retail because of their locations. They are basically old and tired companies. The retail sector has two types of operators: the large box discount, destination store type and the smaller retail outlets. The large box party stores suffer due to low volume, high rents, poor service, and low margins. Generally, consumers are not prepared to travel for what is usually a relatively small purchase if the same service is provided by a smaller but closer, more friendly and fun Cody Party Store. The smaller stores struggle because they don't have brand recognition, are not able to effectively advertise, merchandise and purchase through volume discounts. They are also not diversified enough to increase revenue during the slower months.