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| Bates-Rent-A-Motor Home, Inc. |
| Minorities and Women in Business, April 1987 |
| The idea for a motor home rental business grows into a million dollar corporation with rental to an array of clients from business, industry, name personalities and governments By Leah Creque-Harris Sandra Bate, at age 19, stumbled upon a business idea that grew into a million dollar corporation. Bate was a young insurance and securities sales agent in Los Angeles who ran her business from a luxurious Laguna 250 mortorhome/office. Clients and friends were so impressed with her mobile office that they requested use of the vehicle on a rental basis. As Bate phased out her insurance and securities business, she placed an ad offering her recreational vehicle for rent and received an overwhelming response. “When I placed that ad in the paper, the last thing that I expected was to make a business out of it,” Bate marvels. To satisfy the demand, she then contacted other mobile home owners and contracted rental agreements with them. Thus, 1n 1973, Bates-Rent-A-Motor Home was formed. Bates continues to supply her rentals from contractual arrangements with owners. Her inventory consists of over 3,000 leased vehicles. She offers between 40 to 60% of the profit to mobile home owners who are willing to lease their vehicles through her agency. Many recreational vehicle owners have found this to be a lucrative deal offering both income as well as tax deductions. Bate has an extensive list of suppliers and is networked with Eastern Airline’s System One Reservations System enabling her to arrange rentals in 100 U.S. cities and 18 foreign countries. Other referrals come from travel agents who encourage tourists to use Bate’s unique fly and drive program, where the company’s services plan all the features needed for a holiday or tour of the United States, Canada and Europe. “I never dreamed that this business would do so well. After four years of operation, I knew that it was going somewhere. Business is booming for Bate due to more domestic travel resulting from the threat of terrorism overseas and high prices. She estimates that a family of five can travel cheaper in a motor home and pay campground fees for one week for the cost of a single night in a hotel. The outlay for three restaurant meals will often cover the cost of several days of cooking in a motor home. “Motor home travel is an important part of the travel and tourism industry,” explains Bate. According to industry statistics in excess of 250 billion dollars a year is spent on leisure activity and travel. Motor home rentals area a significant segment of this market that Bate has tapped. Seven years ago, the company headquarters was moved to Las Vegas at the urging of a hotel owner who wanted the tie-in with motor homes. Sandra Bate placed ads in Las Vegas newspapers to test the market and received over 200 calls in the first day for motor home rentals. Bate’s vehicles have been rented to an impressive array clients, including entertainment notables as Bill Cosby, Sammy Davis, Jr. Burt Reynolds, Luciano Pavarotti and Lily Tomlin. Bates explains, “Many entertainers and the major networks use our Bates vehicles on location as dressing rooms and offices.” Bate’s versatile vehicles have also been used by the U.S. Secret Service for President Ronald Reagan and for the family of the President of France. The major Las Vegas hotels and casinos have special arrangements with Bate including Caesars Palace and the MGM Grand Hotel. Los Angeles still provides the most rentals because of the many tourist attractions throughout the state of California and the favorable climate. Bates is the only company of its kind that functions as a motor home rental referral network. As a pioneer in this field, Bate has served as a consultant instructing travel agents and airlines on how to structure a referral system and authored the “Motor Home Quick Reference Guide” to train agents in booking motor home reservations. A recipient of numerous achievements awards, she is cited in David Silver’s book as one of the most interesting entrepreneurs of the last 25 years. When asked of her future plans, Sandra Bates excitedly remarked, “There are great things out there for us. I hope to expand by obtaining more venture capital and through increased advertising.” Bate’s ventures into this unchartered industry will continue to make hallmarks of entrepreneurial achievement. |
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