Creating Profitable Party Packages $99
- Price for Profit Summary White Sheet
- PowerPoint Audio/Video Presentation
- Detailed Competitive Analysis Worksheet and Samples
- Party Package Cost of Sales Excel Spreadsheet
- Party Forecasting Excel Spread Sheet
- Party room inventory Excel Spread Sheet
- Price Increase analysis Excel Spread Sheet
Profitable Party Packages
Many commercial birthday party concepts packages are the root cause of their own lack of growth, profitability and operational issues. Most owner’s under value themselves and feel they have to be the same or cheaper than competitors, in order to maintain or grow their market share. This thinking is usually driven by fear of loss (less parties) fear of change and or uncertainty.
Value, as defined in the minds of today’s consumer, is in direct proportion to the perceived feelings they walk away at the end of their visit. “Was it different?” “Did I feel important?” “Did they pay attention to me?” “Was it worth what I paid?” The answer to these questions at that moment in time, determine if and when they will come back again.
A common misconception by owners is defining and increasing value by adding “more”. Adding more parties, more kids, more time, more attractions or more inclusions, can have negative effect on the program’s success. More tangible elements to your party or group packages can be problematic, if its not the “right” amount of the “right” things. Profitable party packages will include more intangible value as well as traditional party inclusions that have a perceived value and are bundled together to form complete and convenient packages as defined by the guest. Bu they are also packages that you know you can be successful with.
Intangible value cannot be seen or touched, but is far more valued to today’s party consumer. They literally can’t afford to make a mistake with their money. It’s too painful, not only to make a bad choice for this special, once a year celebration, but to over pay for a bad choice is unbearable in today’s economy. Value equals the perceived benefit (how they feel) divided by the price. Value can be created in two ways. Lowering the price by offering a cheap party, discounts or coupons or increasing the overall perceived benefits, from the guest’s point of view.
In the commercial birthday group events world, lowering your price accomplishes two things.
If you are the lowest party price option, you will capture approximately 27% of the market that buys on price alone. This segment of the market is very demanding, always looking to shortcut the system, the first to complain and difficult to satisfy. Cheap parties will define your party brand as a lower quality offering. According to the unwritten principle, “The law of the price”, people tend to trust higher priced items as being better, just because they cost more. No one wants to admit being cheap, when it comes to a party for their child, even if economically pressed.
Your business literally can’t afford to produce the best quality party when your price is too low. Expenses are virtually the same to run the event, no matter what you charge. It requires the same amount of labor effort and occupies the same amount of space on your busiest day(s) of the week. It “Dis” eases your business by cutting directly into your profit margin.
Adding greater value (especially intangible value) is critical for long-term growth. When your program blends or is inferior to your competition, you will eventually be defined as the “Not good enough for me or my child’s party” and overlooked by the 73% of the market who desires to give the absolute best for their children on this special day and are willing to pay for the memory.
Customization or Personalized Packaging
The 20th Century was largely characterized by Mass Production while Mass Customization will most likely characterize the 21st Century. Long gone are the days of “one size fits all. This impact will be seen across industries …business, education, manufacturing, tourism, and especially birthday parties.
Individual attitudes express a strong interest in self-invention (ability to self-customize products / services). 37% report a willingness to pay as much as 20% more for customized products and services.
Have confidence in your offering; add intangible, people value, social and emotional connections. The added benefit of charging more … forces you to be better. You can’t settle at average, blend and still survive. It pushes you to evolve, uncover new trends, be unique and create meaningful parties and events. There is a sweet spot. Find it and push it to its limit and charge what you are worth.