Party bag business, Advice Please.

[smj28]

Hi,

I am thinking of setting up an online pre-filled party bag business, im going to attempt to make it more niche by only offering, good quality party bags at premium prices. I have more research to do but most party bags being sold online are very similiar in products, price and quality.

I will start small (3 price ranges, 3 age groups and have boy, girl or unisex), advertise locally and slowly build it up.

The idea has come from me putting together my own party bags for my kids, as I tend to source good quality luxury goodies at very good prices and have also done it for other friends.

I am not sure if its going to work as the party bag market is already saturated or if its going to be able to take off in todays economic climate.

Any advice is appreciated.

SMJ

 

[Drpepper]

What are you intending to put in the bags, confectionery, toys?

 

[devilmaycry]

What are you going to charge?

Currently I pay 55p per bag.

 

[thetime22]

any more details so we can help out.

 

[gemd89]

Nice idea - I like it and maybe it will be good for older children but toddlers really can only have specific things - is a party bag really need to be luxurious?

I thought the whole point was a couple of toys, piece of cake, crayons and maybe a pad of paper or colouring book - tied to a balloon!

What were you thinking of charging for each pre packed bag?

Gemma

 

[smj28]

Drpepper, yes, toys, sweets and books.

I have been putting good quality childrens books in the party bags and the feedback I have had from mums on this has been good so far. I know its not gona be for everyone.

I have been using clear cellophane with kids name stuck on the front - they have gone down a treat as kids can see the goodies inside - so you could say its not your traditional 'party bag'.

I need to work on my packaging though to make it eye catching and professional.

 

[deniser]

In the area where we are there has been a shift back to the less extravagant, more traditional party bag with some sweets and not a lot else.

 

[smj28]

To start with I will have three prices,

for example bronze £4.99, silver £7.49, and gold £9.99.

I am still to costs things up but I have spent about £3.00 on the ones Ive done myself and they are the ones that I would sell for £9.99. These had about 7 to 8 items in them. I have not gone to wholesalers, just keep my eye out for good quality toys etc at bargain prices.

 

[Drpepper]

Drpepper, yes, toys, sweets and books.

I have been putting good quality childrens books in the party bags and the feedback I have had from mums on this has been good so far. I know its not gona be for everyone.

I have been using clear cellophane with kids name stuck on the front - they have gone down a treat as kids can see the goodies inside - so you could say its not your traditional 'party bag'.

I need to work on my packaging though to make it eye catching and professional.

All I can add is that the sweets need to be wrapped, and not the sort that are designed for weigh out etc as you will need a H&S cert' for re-packaging food, certified scales for weights and measures, and then of course ingredients listed and sell by dates.

Basically stick with items that have all the info on each item!

 

[smj28]

Let me know what you are thinking of the prices. My prices maybe alot higher than others but I intend to market them to a particular niche market who are looking for quality and something different.

I also intend to focus alot on the book side too.

 

[smj28]

gemd89, I think it could work for toddlers and older children alike as the usual stuff from the party bag ends up in the bin. if its a good quality item, then its less likely to get there.

With regards to the traditional party bags, there are so many online businesses offering these - I want to provide something that is different and maybe develop it into a niche, I know it won't be for everyone.

 

[smj28]

deniser, do you think that has happened because the current economic situation?

 

[Drpepper]

As deniser said there is a shift back to more sensible priced party bags. We had a lot of people start moaning about stupid amounts being spent, and certainly over the past two years those expensive presents etc have pretty much stopped.

We generally get asked to provide bags anywhere between 75p to a max of £2.50, and usually for between eight and twenty five bags.

Strangely there is no real correlation between the numbers of bags and price point though!

 

[deniser]

deniser, do you think that has happened because the current economic situation?

Yes I believe so. Even if people have the money there seems to be a fashion for playing things down and not making conspicuous displays of spending money.

In fact the last 3 parties my daughter has been to there was no party bag at all (much to her disgust and my relief!)

Her friends come from a very wide range of incomes and the attitude is the same amongst all of them.

Having said that, I am probably the one who would splash out as I am lazy when it comes to that sort of thing and would rather pay someone else to do it for me but I am very much in the minority!

 

[gemd89]

Not trying to be negative but the last party for 3 year olds i went to there was 25 kids - so thats 25 bags X £10 ? And then hiring the place/food etc would be quite expensive unless you are just going for the top end?

Also i dont think my 3 year old son gave a stuff about his party bag he was happier with the balloon and the playing in a big play area indoors with his friends.

Obviously im not your target market - im happy with the cake, crayons etc

Gemma

 

[smj28]

Thank you everyone, they are all valid points.

Do you think if I look at the pricing, maybe reduce the number of items in each bag, and keep it simple, do you think it could still work?

 

[Drpepper]

Thank you everyone, they are all valid points.

Do you think if I look at the pricing, maybe reduce the number of items in each bag, and keep it simple, do you think it could still work?

As it's online and you don't have to physically make up the bags until the orders come in I would try all different price points/contents from £1 to £30. This way you'll cover all bases to start with and may just discover that niche.

 

[smj28]

Also please can you advise whether I sould be a sole trader or limited company and as it will be a business operating from home, do I have to put my address on the wedsite, or are there any alternative solutions to this?

Thanks

 

[Drpepper]

Also please can you advise whether I sould be a sole trader or limited company and as it will be a business operating from home, do I have to put my address on the wedsite, or are there any alternative solutions to this?

Thanks

I would go sole trader to start with, lot less paperwork and cost involved and easy to stop if it doesn't work. You can always go Ltd later.

Yes you do have to put your address on the website, and VAT reg/company no if applicable etc.

 

[gemd89]

Hey, Im a sole trader/work from home and it suits me fine! Very easy with the paperwork aswell.

I like the idea above of having different price scales of the bags - I actually have a hannah montana party bag with 8 loot bags and some party stuff for £10 so as you can see quite cheap.

I like the idea of a book in the bag - but if your going to pack the bags there wont be any cake and thats the favourite bit! hehe!

Gemma

 

[deniser]

I would go sole trader to start with, lot less paperwork and cost involved and easy to stop if it doesn't work. You can always go Ltd later.

Yes you do have to put your address on the website, and VAT reg/company no if applicable etc.

Agree.

You will probably also need public liability insurance.....i'm thinking small children choking on things, eating something containing lead etc. Make sure everything you buy is age appropriate and has the necessary safety certificates.

 

[smj28]

Drpepper and gemd89,

Thank you for your helpful advice. I have lots more research to do yet and this discussion has given me lots to work on.

gemd89, I think packed party bags have worked better with the older kids as they have the cake wrapped in a napkin. However not sure if it would work with the younger ones.

 

[smj28]

Thanks deniser. I will have to look into that.

 

[devilmaycry]

I don't want to be negative either, as I do like the concept, but I don't think that there is a market for a £10 party bag.

I charge £8.50 per child for a party at my play centres. The minimum numbers for a party is 10. Therefore, it would be £85 for the party itself and £100 for the party bags. I would get laughed at!

Even in play centres in Chelsea they charge c.£15 per child. Which still makes a £10 party bag seem ridiculous.

Your only market is people having very very extravagent parties at home and that is not going to be a volume market.

It reminds me a bit like the wedding list concept.

There is a market for better party bags, but I think your concept is a little too far in the other direction.

 

[smj28]

Thanks devilmaycry for your comments.

I think you are right there is a market for the better bags but I need to get my pricing right.

As its online I can test the waters and see where it takes me - but the main thing thats going to make me stand out is what my party bags offer and how well I offer them. By this I mean I will break from the norm and make them somewhat different ie the content or the way its presented etc than whats on offer from my competitors.

 

[smj28]

devilmaycry, from your experience what kind of price are parents willing to pay for a quality bag?

 

[Deleted member 74679]

given the economic climate I would probably go for a different niche (some of which I am sure have already been done)

eco-party bags
heuristic play party bags
explore outside/nature party bags
imaginative play party bags
book-reading party bags
cook-at-home party bags
get crafty party bags

etc etc.

I reckon there is a large section of parents looking to do something 'different' now that the 'my party is better than your party' competitive parenting is (thankfully) out of fashion. I totally agree with Deniser - in our area it would be considered naff to go over the top on a party bag - reverse snobbery at work.

 

[Fuzzy]

Hi, I def think £9.99 is way too much. A fiver yes, but no more. Have you looked at this site, may give you food for thought/ideas.

 

[smj28]

Thanks Fuzzy.

The bags look very good as they are eco and reusable, also its a different take on the traditional party bag and the price is good too.

 

[gemd89]

Are pre filled party bags competitively searched in google then?

Gemma

 

[smj28]

gemd89,

I would say so. There are so many of the sites selling the bog standard ones that you get at nearly every party your child goes to. However alot are turning to new or different ideas as Funkys link above shows.

 

[devilmaycry]

devilmaycry, from your experience what kind of price are parents willing to pay for a quality bag?

It is a difficult one because, in my experience, the decision is purely based on price. And whether the parent booking the party thinks they can do it themselves for cheaper. Therefore, it is sort of detrimental to up the price even further and it becomes essential to offer a unique party bag that couldn't be made up by parents and justifies a higher price.

I think that the person above had a good suggestion about themed bags.

On top of the themed idea, I think I would be interested in buying a better (not luxurious) party bag. For example, a small box Lego or a Cbeebies DVD instead of a little random toy that will break soon.

 

[smj28]

Thanks devilmaycry - very good advice.

I think the idea of a luxury party bag is now beginning to wear a bit thin and peoples comments on here have made realise that I should concentrate more on the book side and like you said maybe DVDs or I could add CDs for older kids. If I stick to 'less is more' and focus on good quality at a competitive price it may work.

There are many sites offering licensed themed bags - but I could research generic themes for girls and boys, like pirate, princess etc but Im not sure if this is where I want to be.

 

[smj28]

devilmaycry, do you think if these 'better' bags are offered to indoor play centres like yours, do you think there will be many takers if a commission is offered. I know these places usually do thier own so not sure if they would prefer to buy them and then sell on?

 

[gemd89]

Or just become a party planner and deal with everything?

Gemma

 

[devilmaycry]

devilmaycry, do you think if these 'better' bags are offered to indoor play centres like yours, do you think there will be many takers if a commission is offered. I know these places usually do thier own so not sure if they would prefer to buy them and then sell on?

I only know of a couple of play centres that make their own. I, and a lot of others, buy them in pre-packed like you are suggesting...

 

[smj28]

devilmaycry, so one day maybe we could do business

 

[devilmaycry]

devilmaycry, so one day maybe we could do business

You never know. You know where to find me if you get something together.

 

[mike.davis]

I am not sure if its going to work as the party bag market is already saturated or if its going to be able to take off in todays economic climate.

Any advice is appreciated.

My advice is that that's not a very good attitude to start a business with, I would never go into a new business with that view because it's expecting failure.

Instead of just saying the markets saturated, study your competitors and find ways you can differ from them, find ways you can be better than them.

 

[Fuzzy]

as Funkys link above shows.

Funky?!!