RM Online - Rise to the top with balloons

Recent improvements in foil and latex balloon-making machinery have helped reduce the sometimes-hefty prices associated with investing in this side of the party business.

So if your company is thinking about getting into balloons or if you're thinking about expanding what you already have, begin to look beyond the standard "Happy Birthday" foil balloons that have been around forever. As themes dominate small- and large-scale events, so, too, can your inventory of balloons.

Consider this: the United States is the world's No. 1 balloon marketplace, and more than 133.8 million people buy balloons every year for friends and family, according to research from West Winds, Avon Lake, Ohio. "We're seeing more and more balloons being used in large events such as graduation parties, weddings and anniversary parties," says Donna Conrad, West Winds sales/marketing manager.

John Belpedio, president of Advance Creative Products, a distributor in Buffalo Grove, Ill., says that rental operations should be looking at balloons not only from the standpoint of retail sales, but also as a decor option for rental events.

"Balloon decor is being used more and more for summer tent decorating, staging backdrops, head-table treatments, centerpieces and for adorning vertical and horizontal poles," Belpedio says.

And while this is not exactly news to all party rental people, there is a huge assortment of theme and color-coordinated balloons in latex and foil that might be news to some.

"Themes have continued to grow in the '90s, and theme-oriented balloons are really hot as well," Belpedio says.

There is an array of items that focus specifically on decorator displays, including foil balloons that have color-coordinated latex counterparts.

The upcoming millennium celebration is a prime example of how rental stores can market their inventory. There are foil globe-shaped balloons, which are selling fast, along with complementing Year 2000 products. These kinds of items are perfect to stock specifically for the season as retail items or to have on standby for event decorating. Either way, it's time to start planning and stocking now.

"As a distributor, we're encouraging rental store people to plan early when it comes to the millennium celebration," Belpedio says.

There are other kinds of balloons that can really give your store something that sets you apart, he says. This includes balloons that are more plastic in nature so can be left outside for days.

There is also the Duos Balloon, which has two balloons in one and can be put on a frame. "You'll see a lot of outdoor companies using these in the summer months because you can rent them as well as sell them," Belpedio notes.

For those rental companies that treat balloons more as a separate retail division, this may be the time to consider renting helium tanks. You can dramatically increase sales and make the balloon purchase easier for customers by renting these machines.

"Customers want to be able to have balloons when they need them, so convenience is a major factor rental stores can offer," Conrad says.

While most party rental stores have been reticent to get into helium-tank rentals due to liability concerns, Conrad says the new designs pretty much erase that issue.

Helium tanks are now smaller, safer and easier to operate, according to Conrad. West Winds' tank features a unibody, all-inclusive design so all a customer has to do is turn it on, she says. The helium tank also has a carrying handle and a protective cover with a gauge so people know its contents.

"More and more stores are seeing how easy it is to transport and use these tanks. They are clean and neat-looking, and appeal more to women - plus women normally would be organizing the types of parties where having a helium tank would be useful," Conrad says.

She says the return on investment is excellent because the cylinder pays for itself after four to five rentals, and the average profit margin is about 80 percent.

In addition, rental cylinders occupy minimal floor or storage space. For example, West Winds' display holds six small cylinders and measures just 21 by 15 by 56 inches. Because you can refill the cylinders yourself with your larger in-house tank, you only need enough cylinders on hand to cover your weekly sales, Conrad says. And she says a store will save on the cost of helium refills, rental or demurrage from the gas company. Your store will need to invest in a transfilling manifold to refill the smaller cylinders.

So if you're selling balloons, the next logical step is renting the helium tanks, Conrad says. "Get them out front and show your customers how easy they are. You'll be amazed at how they'll fly out the door."