Many businesses struggle when it come to pricing, and not just in the balloon industry!
The fear of pricing too high and not getting any business versus pricing too low and never making a profit is an everyday dilemma.
In the interest of today's blog, I asked a few of my ballooning friends from around the world to tell me how much they would charge for this style of air-filled design in their country. I chose this design as it uses very few balloons and it's quick and easy to make.
Before we start, write down how much you would charge for this design and see how your price compares to others.
The fear of pricing too high and not getting any business versus pricing too low and never making a profit is an everyday dilemma.
In the interest of today's blog, I asked a few of my ballooning friends from around the world to tell me how much they would charge for this style of air-filled design in their country. I chose this design as it uses very few balloons and it's quick and easy to make.
Before we start, write down how much you would charge for this design and see how your price compares to others.
So how do we know how much to charge? Some of us will "guesstimate," while others will actually work out how much they need to charge to make a profit!
Whenever I am pricing a design, I always start by completing a QBN Job Cost Form (shown above). It really helps to make sure that you have covered all your costs and make a profit, too!
For my example, I am using the prices that are listed in the 2018 Qualatex European Everyday Catalogue. All the prices in my example are in UK £., and I have included V.A.T.
For my example, I have calculated that I would need to sell the design at £11.24 to cover my costs and to make a good profit.
The weight that we use in a design like this can vary in type and cost. Some will choose to use a purpose-made weight, whilst others might use a sand or water weight - this will have an impact on the selling price.
Here are the suggested selling prices for the same style of design from some of my ballooning friends from around the world:
- Belgium €12.95 - £11.54 - USD $14.76
- Australia AUD $19.00 - £10.98 - USD $14.03
- USA USD $15.00 - £11.77
- UK £9.99 - USD $12.79
- USA UDS $12.00 - £9.42
- Hungary HUF 2190 - £6.05 - USD $7.74
I am really pleasantly surprised at the price range. With the exception of Hungary, there is not a huge price different between these countries. But it does not surprise me that Hungary's price is much lower. If you look at how much people earn around the world, there is a huge difference in the minimum wages. For example between Belgium and Hungary, wages in Belgium are more than three times greater than in Hungary (comparing 2018 minimum wages) and therefore the labour costs in each of these countries will reflect this difference.
2018 Minimum Wages - this is a helpful guide to compare wages around the world.
Belgium - €1562.60 per month
UK - £1462.60 per month
Hungary - €444.10 per month
USA - USD $7.25 per hour - USD $275.50 per week
Australia AUD $694.90 per week
The job cost form is a good guide to help you with pricing, but make sure that the information that you input is accurate, otherwise it can alter your pricing significantly! You also need to consider perceived value, too. Often designs can look like they are worth more than the Job Cost Form suggests, and there is no reason why you cannot charge the perceived price rather than the job cost price - this is very common in creative-based industries.
I have written a few blogs on this subject:
And finally, don't forget we can up- sell and offer personalisation! This is a great way to add value to any design! Below is an example of how Luc Bertrand, CBA, of WaW Balloons in Vichte, Belgium, promotes them.
Here is another way to up-sell this style of design. By simply adding arms, we have created a more interactive design! Finally, the third version is a mini table-top sculpture - all very quick and easy to make!
Thank you to all those who helped me with this blog. For those of you who struggle with pricing, have a go at using the Job Cost Form to help you to work out your minimum selling price to ensure that you make a profit. Making a profit will keep you and your business healthy and happy!
Here is another way to up-sell this style of design. By simply adding arms, we have created a more interactive design! Finally, the third version is a mini table-top sculpture - all very quick and easy to make!
Thank you to all those who helped me with this blog. For those of you who struggle with pricing, have a go at using the Job Cost Form to help you to work out your minimum selling price to ensure that you make a profit. Making a profit will keep you and your business healthy and happy!
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