Correct pricing is fundamental to enabling profit and growth in your business. The balloon industry is like no other. Due to the variations in designs & direct costs dependant on where you live, it is not possible for manufacturers to give a recommended retail price. In this blog we discuss the impact of incorrect pricing on your business and why it’s essential to get pricing right to grow your business. There is also a free masterclass showing you how you can quickly and easily calculate your costs in 3 simple steps – no spreadsheets or complicated forms – all you need is a calculator on your phone!
Are you charging the right prices in your balloon business?…
Pricing is the number ONE question in all the Facebook balloon professional groups yet lots and lots of business owners still struggle with it! ⁉
➡WAIT!!! IT’S NOT JUST YOU! I TOTALLY GOT IT WRONG TOO!⬅
When I first started out in my balloons business I have to admit I totally got pricing wrong! Balloons was literally a hobby I was passionate about. I posted a few pictures on Facebook to show my Mum what I was making and wow! People actually wanted to buy it! I couldn’t believe it! Then came the big question everyone wanted to know how much! I had absolutely no idea! I was flattered people wanted to buy my balloons and by selling them it meant I had money to buy more (plus it meant they weren’t cluttering up my house because I couldn’t bring myself just to pop them!). I came up with (what I now know to be ridiculously low) prices to cover supplies and being able to buy some more in the future.
The key thing here is I was pricing my wares as a hobby and NOT a business. The trouble was as I started to consider it being a business I had a really hard time dropping the mentality around pricing. Every time I considered what I could charge this little voice in my head was like “Oh I could NEVER charge that” or “People wouldn’t dream of paying that!” I tried using the job cost sheet but still the voices in my head were asking “Are you being serious??!!”
?Does this ring any bells with you??
Do you know your prices are on the low side? Do you even know if you are charging the right prices in your balloon business?
CONSIDER NOW…. why its important to be charging the right prices in your balloon business!
1. Profit enables your balloon business to grow. You need profit to be able to invest in your business, go on courses, buy equipment, employ staff… Without profit & proper investment you will never grow it!
2. You need to cover your over heads. Running a successful balloon business doesn’t just involve the costs of the supplies you use to create the product, it also includes things like your website, professional indemnity insurance, van insurance, electricity, petrol, the apps you use on your phone the list goes on. If you don’t price your products correctly you will end up running at a loss!
3. If you don’t value your skill and the balloons you create with the right pricing your customers won’t value it either! The likelihood also is that friends and family will not value it and you may hear the dreaded words “ You could always get a proper job” (Arrrrggghhh)… or “Don’t worry…. At least you tried” (sobs)
4. If you seriously want to make your business a full time job for yourself you need to be able to create enough profit to pay your bills! so you need to be able to pay yourself a wage! So many people in the industry don’t even pay themselves minimum wage for the hours they invest in their business… Who ever heard of someone running their own business and not getting the minimum wage?
5. If you don’t make enough to continue trading who is going to make those amazing balloons that your customers need to decorate some of the greatest memories they will ever make?
How about you and your business? Do you know you aren’t pricing quite right? What do you find difficult about pricing?.
Don’t worry! It’s not as hard as it may seem! See below How to Calculate balloon prices!
The main thing that put me off sorting my pricing out was either it seemed really complicated or I needed to put the figures into spreadsheets or costing forms. I get so many pricing requests it just wasn’t feasible to jump on the computer everytime I needed to calculate a price but I knew I needed to stop “guestimating” to make my business grow. I came up with a quick and easy way to calculate prices quickly and correctly everytime.
I have put together a FREE Masterclass for you below showing you exactly how I price quickly and easily on the go! No complicated spreadsheets, job cost sheets, laptops or computers required. All you need is your phone with a calculator app on it! Just fill in your details and I will send you the masterclass straight to your inbox so you always have it handy for future reference!
LEARN HOW TO PRICE IN 3 QUICK & EASY STEPS
FREE Masterclass - 3 simple steps to Quickly and Easily Calculating your Prices.
As well as getting access to this amazing resource you will be added to the wonderful Balloon Biz Academy Community eMagazine, you are free to unsubscribe at any time if it’s not for you AND I absolutely promise I wont send you off down a funnel of automated emails, I am not spammy - Its all about tips and advice to help you grow your balloons and venue decor business - and I keep your details super safe.
I hope you found this useful! I would love to know what you think of the masterclass and whether its helpful to you in your business. Comment below or drop me a line at Sonia@balloonbizacademy.co.uk