DIY tools are big business, with sales for 2020 forecast to be worth over $30bn USD – equivalent to the GDP of Iceland!
But the majority of these tools are purchased for household use, which by all accounts isn’t very much use at all.
According to Danish researchers at Concito: Hand drills get used for approximately 18 minutes in their lifetime, whilst PWC and BAV Consulting estimate usage to be as little as 12 minutes – EVER!
With the UK-based waste charityWRAP estimating that the life-cycle emissions from a power drill amount to around 28 kg CO2e, this is all starting to paint a very worrying picture. Consumer appetite to buy new is destroying our planet!
Why am I telling you this? Well it’s a little segway into introducing a new(ish) company that is solving this very problem, and could make you some easy money!
Fat Llama is a sharing economy application that facilitates rental of goods between renters and lenders. The platform grew out of Hoxton, East London, and has seen huge growth over the last few years. Its growth is claimed to have also resulted in some pretty impressive carbon emission savings (the methodology of which is a little suspect so we will not share those figures here…)
Having used this app over the last 9 months, I have to say I am a huge fan. I share stuff in my house that rarely gets used as well as making some money. The renter saves money as the tools are cheaper to rent than to buy outright. …and the best bit… we don’t need to buy more stuff!
I make about £40 per month from Fat Llama currently, and that’s mainly just my golf clubs, but the opportunity is much wider than that. In 2018, the BBC reported that photographer Antonio Salvani, 36 was making on average £4K per month renting his camera equipment. Saving enough money to buy his mother a new flat!
It’s not all about the money!
There are so many other benefits to a sharing platform such as Fat Llama:
- It connects people with their neighbours and local community
- It motivates people to become active, creative and try new things without the need to invest in equipment
- It stops people buying shit products once, and never using them again!
- It stops people buying stuff non-stop!
BUT money is important. Over the years we have seen the launch of other similar schemes such as Streetbank, which unlike Fat Llama works on a free basis akaou lend your goodies to neighbours for free. However, this model has a few flaws. With a mechanism for generating revenue for the platform as well as the users, here are a few reasons why we think Fat Llama is going to be a long term winner:
Money draws in the crowds. Any new business venture needs to hit a critical mass in order to function. Fat Llama is at that stage in London and New York and continues to grow in other towns & cities.
Fat Llama takes a cut, unlike its competitors., Fat Llama has a punchy but transparent business model. They take 25% off renter and lender, a fair price when you consider it also includes insurance cover. It also helps them grow the business, which ultimate help us all.
Wear and tear costs money, so it makes sense to charge someone to use your stuff, even if it’s just a nominal amount like £5. Lets be honest, renting requires a little bit of extra planning and admin, so the money exchanged accounts for the additional time spent sharing your goods!
How does it work? A step-by-step guide:
- Download the app from the app store, or sign up online.
- Search for stuff you want to borrow OR post your stuff you have to rent.
- Save money or Make money!
Note: Its worth noting that Fat Llama is currently operating in larger UK cities, New York and San Fran
Don’t buy new. Even if you buy the cheapest tools, you will need to use it on over 10 separate occasions to make it worth it!