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As a balloon decorator, it can be challenging to price your work appropriately. It’s essential to balance making a profit and offering a reasonable price to your customers. Pricing balloons can be complicated, but it doesn’t have to be. Here are some tips to help you price balloons for profit.
Things To Consider When You Price Balloons:
- Where you live and are working. You can charge higher if you are in a large city vs in a small town.
- Skill level: if you are starting, you will be cheaper than someone who has been doing this for several years.
- What is your minimum? – Do you have a minimum order amount to make it worth your time, or are you willing to take any job to get the experience?
- Do you offer delivery? – If so, what is your delivery area, and do you need to charge a delivery fee?
- Will you need to rent a truck to deliver balloons?
- Do you offer to clean up? Will you charge a clean-up fee to make it worthwhile, or is it included?
- Will you offer grab-and-go items so you don’t have to worry about delivery?
- Where will the event be held, inside or outside? Outside events take a lot more planning and execution to pull off. Will you charge more for outdoor decorations?
- How long will a particular event take to set up? If the client gives you a small setup window, will you charge more so you can hire help if needed?
- If you have a very demanding client, will you charge more?
How To Price Balloons For Profit – In-Depth Method
Calculate the Cost of Materials
The first step in pricing your balloon decorations is understanding the cost of materials. Take the time to figure out how much your balloons, helium, accessories, and any other necessary materials cost you. Remember that prices can vary depending on the location and supplier of your materials. If you’re using leftovers from a previous job, factor in the original cost when calculating the total cost of materials.
| Materials | Quantity | Unit Cost | Total |
|---|---|---|---|
| latex balloons | 5 | $0.35 | $1.75 |
| helium | 5 cu ft | $5 | $25 |
| Hi-Float | 5 | $0.09 | $0.45 |
| ribbon | 5 | $0.05 | $0.25 |
| Total | $27.45 |
How To Figure Out The Unit Cost Of An Item – Price Balloons
Ok, for this example, I will use the latex balloons from above. If you click the link above it will take you to Amazon. When writing this post, the balloons cost $8.94 for a 25 pack.
To find the Unit Cost of an item, take the total cost of the item and divide it by how many you are getting. Ex: 8.94 / 25 = 0.3576; if we round up, it would make these balloons $0.36 a balloon.
If you purchase from Amazon, you may notice the cost of an item, $8.94, followed by a count ($0.36 / count); the count number is the unit cost or how much each balloon would cost individually.
I have figured out the unit cost of ribbon and Hi-Float; check out my posts All About Curling Ribbon for Balloons – Balloon String, and Everything You Need To Know About Hi-Float For Balloons for the unit cost of Ultra Hi-Float.
For more information about helium tanks, check out my post, The Best Helium Tanks: Everything You Need To Know.
Consider Labor Costs
Your time is valuable, so make sure you’re compensated for it. When calculating your pricing, factor in the time it takes to create your balloon decorations. Consider the complexity of the design, the manual labor, and the time spent setting up. You can also factor in that you have other expenses you need to cover.
Research Your Competition
Another way to price balloons is to research your competition and pricing. Look for other balloon decorators in your area and see how much they charge for similar services. You can also check online marketplaces to understand what other people charge for identical balloon decorations.
Assess Your Skills
Next, assess your skill level. A beginner balloon artist will charge much less based on their skill level than a seasoned balloon professional. This can be a difficult step for some, but it is essential to be honest with yourself.
Set a Profit Margin
Once you’ve calculated your material and labor costs, researched your competition, and assessed your skill level, you can set a profit margin for your business. This margin should be enough to cover any extra expenses like marketing, insurance, transportation, or any other overheads. It’s essential to be realistic, consider all potential expenses, and choose a percentage that makes sense for your business.
How To Price Balloons For Profit – The Thirds Method
When determining the pricing for balloon decorations, a commonly followed rule of thumb is to allocate the costs into three main components: materials, labor, and profit. The first third of the pricing, which corresponds to materials, considers all the expenses associated with the balloons themselves, such as the cost of the balloons, ribbons, and any additional decorative elements.
The second third accounts for labor, encompassing the time and effort invested by the balloon decorator or team to conceptualize, design, and execute the decorations. This covers the skilled labor and expertise required to bring the creative vision to life.
Finally, the last third represents the profit margin, allowing the business or individual providing the service to sustain and grow by generating revenue beyond the expenses incurred.
By adhering to this 1/3 rule, balloon decorators can strike a balance between covering their costs, earning a fair income for their work, and ensuring the longevity and success of their enterprise.
It is essential (especially for new balloon professionals) to go through the in-depth method for pricing balloons before just using the third method so you can see how they compare.
How To Price Your Balloons For Profit Video (coming soon)
Other Things To Consider
Offer Customized Packages
One way to attract more clients is by offering customized packages tailored to their needs. You can create packages with different designs, themes, colors, and sizes. Customers can select the specific design they want, and you can tailor the price based on the material, labor, and particular needs.
Make Use of Digital Tools
Another way to help you price your balloon decorations is by using digital tools such as Excel or Google Sheets. You can use these tools to keep track of the costs and automatically calculate the pricing for your offerings. This method can help you save time by doing the pricing calculation automatically.
I have created an interactive tool to help you do just that. You can get yours here. (coming soon)
Interactive Digital Tool (coming soon)
Set A Per Foot Price
Many balloon professionals charge by the foot for a balloon garland or balloon arch. This makes a lot of sense, but you must first go through the steps above to figure out exactly how much you should charge for a foot of balloons.
Levels of garlands: basic might be $10 a foot, organic might be $15 a foot, and if they want a bunch of extras $20 a foot.
Pricing balloon decorations for profit can be challenging, but it’s essential to make sure you’re compensated for your time and efforts. Therefore, it’s essential to budget your costs, research your competition, set your profit margin, offer customized packages, and use digital tools to automate your pricing calculations. With these considerations in mind, you can price your balloon decorations realistically and profitably.
Some other posts you might like: All About A Balloon Business Portfolio, Avoid Costly Mistakes: How To Draft A Foolproof Balloon Decorating Contract, and How To Photograph Party Balloons.
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