Understanding Setup & Breakdown Fees

What This Is

The Setup and Breakdown Fee allows you to charge customers for the labor required to assemble, install, disassemble, or remove a rental item.

This fee is charged as a one-time fee per unit and is not charged per day or per hour.

If the fee is set to $0, no setup or breakdown charge will be added during checkout.


Common Uses for Setup and Breakdown Fees

Many rental companies use this fee for items that require additional labor, such as:

  • Tents
  • Tables and Chairs
  • Staging
  • Dance Floors
  • Bounce Houses
  • Large Inflatable Attractions
  • Equipment that requires assembly
  • Equipment that requires disassembly after the event

This fee helps cover the time and labor involved in preparing the rental item for customer use.


How to Add a Setup and Breakdown Fee

  1. Go to Rentals → Rental Items

  2. Edit an existing product or click Add Product

  3. Scroll down to the Pricing & Billing section

  4. Locate the Setup and Breakdown Fee field

  5. Enter the amount you would like to charge

  6. Save or Update the product

The fee will automatically be added during checkout when the product is booked.


How the Fee Is Calculated

The Setup and Breakdown Fee is charged once per unit.

Example

If:

  • A tent has a Setup and Breakdown Fee of $50
  • The customer rents 2 tents

The setup and breakdown charge would be:

$50 × 2 units = $100

The fee is not multiplied by the number of rental days or hours.


Example

If a customer rents a tent for:

  • 1 day
  • 3 days
  • 7 days

The setup and breakdown fee remains the same and is only charged once per tent rented.


Why Use Setup and Breakdown Fees?

Without a setup fee, labor costs are often absorbed into the rental price, which may not accurately reflect the work required.

Setup and breakdown fees can help:

  • Recover labor costs
  • Charge fairly for complex installations
  • Separate equipment pricing from labor pricing
  • Improve pricing transparency

Many businesses prefer keeping labor charges separate from rental charges so customers can clearly see what they are paying for.


Important Notes

The Setup and Breakdown Fee:

  • Is charged per unit
  • Is charged once
  • Is automatically added during checkout
  • Appears as a separate charge

The fee does not:

  • Charge per day
  • Charge per hour
  • Replace delivery fees
  • Replace staffing fees

If additional services are required beyond standard setup and breakdown, those costs may need to be charged separately.


Best Practices

Consider using a Setup and Breakdown Fee when:

  • Equipment requires significant assembly time
  • Multiple staff members are needed for setup
  • Specialized installation is required
  • Teardown takes substantial labor

For simple items that require little to no setup, many businesses leave this fee at $0.


Additional Recommendations

Review your setup and breakdown fees periodically to ensure they accurately reflect your labor costs.

As labor rates, travel requirements, and installation complexity change over time, your fees may need to be adjusted to maintain profitability while remaining competitive.