How I Price Balloon Décor: A Simple Formula for Success
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As a balloon decorator, one of the most common questions I get asked is, “How do you price your balloon décor?” The truth is, there isn't a simple, one-size-fits-all answer. However, I’ve developed a pricing system that works for both me and my clients, and I’d love to share how I approach it.
Do I Charge Per Hour?
No, I don't charge strictly by the hour, but I do consider my time when pricing. In some of my videos, I mention hourly rates because it's part of the pricing formula I use. The hourly rate helps me track how long it takes to complete certain tasks (like a large balloon arch) so I can have a baseline for future jobs. Every job has its own set of challenges, so the time might fluctuate a little depending on the complexity or obstacles, but the hourly rate gives me a good average to work from.
How I Price My Balloon Décor: A Simple Formula
Pricing can seem tricky at first, but once you break it down into manageable parts, it becomes a lot easier. Here’s the formula I use for pricing my balloon décor services. It's simple, but effective.
1. Hourly Rate
I have an established hourly rate based on my experience, overhead, and skill level. This is what I use to price jobs that require a lot of hands-on time. I average $50-$100 per hour, depending on the complexity of the project. Keep in mind, this varies by location, the type of décor, and how much skill and experience is needed to complete the job.
2. Balloon Cost
Balloon pricing depends on the size, type, and brand of the balloons used. For example, 11” Tuftex balloons might cost me a set price from my distributor. While I don’t price out every individual balloon, I know my costs based on previous purchases. You can keep a spreadsheet with balloon prices and how many balloons you’ll typically need for various installations. That way, you can accurately calculate costs for every new project.
3. All Other Supplies Cost
In addition to balloons, there are other supplies to consider - such as frames, stands, adhesives, transport bags, and any decorative accents (like florals or ribbons). Keep track of these additional supplies so that you can incorporate them into your overall pricing.
4. Overhead
Overhead costs cover things like business expenses, rent (if applicable), equipment maintenance, transportation, and general operational costs. These expenses should be factored into every project you price to ensure your business remains profitable in the long run.
5. Profit
You should always price in profit! Don’t forget that the goal of running a business is to make money. Your profit margin will depend on your location, market demand, and how much work is involved. I set a reasonable profit margin based on the total cost of the job, and that’s included in the final price.
How I Handle Travel Fees
When it comes to travel, I charge approximately $1 per mile. However, to make it more efficient, I’ve established delivery “zones” for the cities I serve. For example, all Grand Rapids zip codes fall into the same zone with a set delivery price. This simplifies the process because, even if a location is a little farther out, it still falls under the same pricing structure. I also don’t include delivery fees in my product prices - those are added on top of the total cost, as they can vary depending on location and the number of products ordered.
Why You Shouldn’t Just Ask Strangers About Pricing
Here’s something that drives me nuts: Business owners who ask strangers on the internet for pricing advice. Social media groups and online forums are great for advice and support, but pricing is something you need to learn on your own. Yes, it’s okay to ask for guidance if you’re stuck, but you should never rely on others to tell you what you should charge.
You only need to learn how to price your services once. After that, you can use your formula for every new project. When you’re in business, pricing should reflect the value of your time, materials, and expertise - not just what someone else is charging. And if you’re new to the industry, take the time to do your own research. Find out what others are charging in your area and make sure your pricing is reasonable for your market.
The Importance of Knowing Your Own Pricing
One thing I’ve learned over my eight years in business is that your pricing should be based on experience and your own business needs, not on what other people are doing. For example, I know some decorators love creating intricate balloon mosaics, and they might charge lower rates because they enjoy it. On the other hand, I personally don’t enjoy making mosaics, so I charge more for them because I’d rather not do them at all! It’s all about finding your niche and setting pricing that reflects your expertise and what you want to offer.
I’ve seen some newer decorators charge ridiculously high rates for basic balloon garlands with a backdrop. While everyone is entitled to price their work as they see fit, pricing yourself out of the market can hurt you in the long run. So instead of pulling numbers out of thin air, do some market research to understand what the going rate is in your area. This will help you set prices that are competitive, fair, and sustainable for the future of your business.
Final Thoughts on Balloon Pricing
Pricing balloon décor is an art in itself. You need to consider your supply costs, the time involved, and your unique skills and experience. It’s essential to have a solid formula in place and keep track of your costs and time. If you don't know your own pricing, you won’t be able to build a successful and sustainable business. So take the time to learn how to price your work, and don’t let strangers on the internet tell you what you should charge. Your business and your clients will thank you for it!
Have any questions or tips about pricing? Drop a comment below and share your thoughts!