There’s a common belief that if everyone simply charged “correctly,” it would aid the industry's pricing problem. But at BAPIA, we believe the issue runs deeper than just standardising prices.
This isn’t a new concern. For years, we’ve heard the same frustrations repeated: businesses undercutting one another and offering services at unsustainably low prices.
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| "The Frustration" |
So, what’s really going on?
Many of the low prices we see in the industry come from those who are just starting out or are treating it as a side hustle or a hobby.
- Hobbyists* typically do not factor in overheads, a labour cost, or profit margin. They often price their work to cover only materials, sometimes even less, since their motivation is enjoyment, skill-building, or social engagement rather than income. As a result, hobbyists can offer lower prices without concern for sustainability or business growth.
- Small businesses, on the other hand, must account for all costs—materials, labour, overheads (like rent, insurance, and marketing), and a profit margin to ensure viability and growth
Materials + Labour + Overhead + Profit = Price - this approach ensures that businesses remain profitable and sustainable, but it inevitably leads to higher prices than those set by hobbyists.
In creative fields, such as balloon artistry, hobbyists often price items based on what they feel is fair, without considering labour costs or overhead. This can make it challenging for professional balloon businesses to compete, as they need to price their products to cover all business expenses and make a profit.
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| I'm a Balloon Artist Post |
The Impact on the Industry
Everyone has the right to enjoy working with balloons, whether as a creative outlet or a business. But challenges can arise when customers aren’t aware of the differences between a hobbyist approach and that of a professional business.
Lower prices, often set without accounting for things like insurance, training, overheads, or time, can lead to unrealistic expectations. Clients may not realise the true cost of running a legal, insured, and sustainable business — and this can make it difficult for professionals to charge appropriately for their work.
Over time, this can unintentionally devalue the skills, experience, and investment that professional businesses bring to the industry — and affect how the industry is perceived as a whole.
Strategies for Balloon Businesses to combat Hobbyists Competition
1. Emphasise quality and Professionalism
Emphasise what sets your professional service apart from hobbyist options. Showcase your expertise, dependability, and commitment to excellence—such as using premium, long-lasting balloons, providing expertly executed installations, maintaining membership in respected industry trade organisation, and ensuring full coverage with public liability insurance.
2. Educate Your Customers
Use your website, social media, and in-person interactions to educate clients about what goes into professional balloon decor. Explain why your prices reflect not just materials, but also labour, insurance, training, and a commitment to customer satisfaction.
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| When you attend training sessions, be sure to let your customers know that you're committed to investing in your skills and professional development |
3. Focus on Customer Experience and Service
Deliver exceptional customer service at every touchpoint. Satisfied clients are more likely to recommend you and return for future events. Word-of-mouth and positive reviews can help you stand out from hobbyists who may lack business acumen or consistency
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| Customer testimonials and Google reviews play a vital role in helping small businesses gain visibility and build trust with potential clients. |
4. Build a Strong Brand and Online Presence
Develop a memorable brand that reflects your style and professionalism. Maintain an attractive, easy-to-navigate website and active social media profiles showcasing your best work. This helps position you as a trusted expert and makes it easier for clients to find and choose you over hobbyists. A hobbyist will not typically dedicate the time, effort, or resources to setting up and maintaining a professional-looking website or consistent online presence—this is your opportunity to stand out and show your commitment to quality and reliability.
5. Network and Partner with Event Professionals
Form relationships with event planners, venues, and other vendors. These partnerships can lead to repeat business and referrals, as professionals often prefer working with other reliable, insured businesses
6. Target the Right Market Segment
Rather than competing on price, focus on customers who value quality and are willing to pay for professional results. Position your business as the go-to choice for premium events, corporate functions, and clients who want peace of mind
7. Innovate and Stay Informed
Stay ahead of trends and continually improve your skills. Attend industry conventions, invest in ongoing training, and introduce new designs or services that set you apart from hobbyists
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| The Celebration and Party Expo (CAP Expo) - the ultimate Party Show |
8. Use Price as a Differentiator—Not a Race to the Bottom
Instead of lowering your prices to match hobbyists, use your higher price point as a selling tool. Clearly communicate the added value clients receive when booking a professional, such as guaranteed delivery, insured setups, and custom designs tailored to their needs.
“Instead of competing on price, use it as an opportunity to highlight the value of your services in your marketing. Make it clear that customers have a choice between low-cost options and high-quality, professional results. While others may offer the cheapest price, you offer the best in quality, reliability, and expertise.”
By focusing on these strategies, your balloon business can effectively differentiate itself from hobbyists, attract the right customers, and build a sustainable, reputable brand in a competitive market.
And finally, speaking from personal experience—when I started my balloon business over 30 years ago, I was very much a hobbyist for the first four years. I had no idea how to run a business' or how to price my work properly. It wasn’t until I took a step back and realised I was barely covering my costs (with just a little extra on top) that I knew something had to change. That’s when I began treating it as a business—and that’s when I started to see a real profit.
Happy Ballooning!
Sue
To learn more about pricing check out the following blog post:
https://theverybestballoonblog.blogspot.com/2021/05/how-much-should-you-charge-for-your.html
For the Interactive pricing tool visit the Balloon Market website: https://balloonmarket.co.uk/resources
* A hobby is any activity that a person pursues because they enjoy it and with no intention of making a profit. People operate a business with the intention of making a profit.
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