Question

Topic: Strategy

Repackaging Business

Posted by Anonymous on 25 Points
Hello!
I have small special event decoration company, Wowballoons.com. Manly we decorate with creations made out of balloons. We can decorate a space, especially large space, cheaper than anybody else and look very fancy.
Here are some examples of our work:
[inactive link removed] page with big sculptures

https://www.facebook.com/profile.php?ref=name&id=1745011789#!/album.php?aid... album on facebook



All our business life we are trying to get rid of notion of the “balloon business” . What it means: we do not deliver balloon bouquets and advertise the higher end: big sculptures and , explosive walls and other special effects, unique never seen designs specific to the theme and venue and so on.
Lately I have met with several big shots on the industry and a much smaller local provider, to be referred to their customers. The message was very clear: balloons are out of style now. What it means precisely – nobody is asking for “balloons”: arches, bunches and columns. And even though what we do is much more, it is almost a different service (product?) – they can not recommend us “since nobody is asking for balloons”.

That means that I have to repackage my business.
Being a decorator, but not a marketer at all, one solution I see is this: split the company in two:
First: usual balloon delivery business: bouquets with flowers, chocolate, plush toys, ... just to supply day to day cash flow.
Second: the Designer’s Studio of a Unique Maser (bla bla bla...) that is presented in such a way that nobody would dare to ask for a simple arch or 3 balloons on a weight. Or, if they do, they understand that it is going to be very costly.
I am sure there are other solutions. What can you suggest?
Thank you!!!


[Moderator: Inactive link removed from post. 2/14/2011]
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RESPONSES

  • Posted on Member
    Karen,

    Are you looking for a marketing company that is able to think outside the box. The team at Extreme Marketing is that team. Our team is not only marketing professionals but we have the hospitality business background. Give us a call for a free consultation to see if we are a match for your business needs. We would love to have your business. To begin with I may start with a double sided rack card that you can distribute to key locations. we are print suppliers and we have excellent prices on print products. We are your one stop source for marketing.

    Renee Smith
    [contact info removed by staff]
  • Posted by CarolBlaha on Member
    The issue is not "people aren't asking for balloons", the issue is educating those providers the wide range of solutions balloons offer. I'm also not sure "balloons are out of style", you can't walk into a grocery store or party planning store without seeing walls of them. Its not that its out of style, its that the biz is being watered down by amateurs. So take it to the higher level.

    It's like when a retailer says "your product doesn't sell" well all products including balloons can't sell-- people sell. You can call yourself a event decoration magician-- and that won't change the fact that "people don't ask for event decoration magicians". They aren't going to ask for a designer studio either. Its a stall not a true objection.

    People have a hard time visualizing. They don't know what you are capable of, yet they've already said they don't want it. That is where the link to sales is broken. I'll say it again, its a stall not a true objection. You aren't getting to the objection yet.

    Repackaging your business by changing the name isn't the answer. I'd work on educating people your range of services and capabilities.

    I don't think you need to split the biz in half. I'd market you are there -- everyday for big and small events-- the one stop shop. Then you can do bouquets and the kind of work that makes you shine. I wouldn't discourage a simple arch. Add that to the bouquet service. Today is SuperBowl, you could have called the local radio station and given away a simple arch in team colors -- got free air space and the prospect of introducing yourself to a potential customer. And remember, you can upsell a simple arch-- think of that as an opportunity. So is the guy who buys one bouquet of balloons. This isn't the kind of work you aspire to, but you've identified a client who likes balloons, who doesn't think they are out of style, and it is the kind of everyday business that keeps the cash register ringing. It also builds TOMA, Top of Mind Attitude, when someone thinks balloons, they will think of you, top of their mind.

    I'd capture the small balloon bouquet customers and market to them for larger possibilities. I'd market the higher design end of the biz you really want. The issue isn't your name, its that -- when we think balloons, all we can think of is that simple arch. So pique our open minds and interest with a true consultative sales approach to this.

  • Posted by CarolBlaha on Member
    Let me change that post-- where I talk about TOMA. Your goal isn't "when they think balloons" to think of you-- when they think "special event" they think of you.

    For example, I recieved a 4 dozen rose bouquet from ProFlowers. That turned me on to them and I use them almost exclusively. But I order plants, gourmet baskets-- when I think of a friends or families birthday, my TOMA is ProFlowers.

    Now, they are doing wedding flowers. Packaged and shipped in a simple box (boxes). They're no longer just a flower shop, though their name is still ProFlowers-- and they got the message out.

    Do you only buy books from Amazon? I dont, but they are my TOMA for a variety of mixed products. Last year I bought pool floats, electronics, cookware, and even a couple books from them.

    Work on the strong brand, not dividing the biz, etc etc.

  • Posted by Jay Hamilton-Roth on Accepted
    A few thoughts:

    * Improve your website. It looks a bit dated. Some tweaking to your template would make you look more modern.

    * Tie your high-end message to recent articles in magazines your target audience may be reading/watching: Martha Stewart Weddings magazine, David Tutera, etc.

    * Can you take your latex balloon talents and do something "eco" - for example, an indoor hot air balloon, etc.?
  • Posted on Author
    Thank you for your answers!

    Firstly: my site is bad and we are redoing it as we speak. (It took me a very long time to find a good site in special event industry just to figure out what I like, if you know one – let me know!)

    With some risk of being seen as a negative person with a red ink mentality, let me clarify my question and add some market specifics.

    I have end users (people who have special events) and recommenders (event planners, catering halls, etc).

    End users do not know about the very existence of that area of decorating. I have to catch them when they just started to plan the event. TOMA? I do not see how I can arrange TOMA at this moment. Also, most people have one party in a lifetime when they spend several thousand on décor, but at least they can recommend, so I am in touch with my serviced customers.

    Recommenders talk to my potential clients every day. But, since I cannot take “balloons” out of their mind, they do not talk about me – nobody is asking.

    If I could have convinced them that our service is the way to have unique and creative decor, especially when the space is huge and decorating budget is not ... It is still just a dream!

    The reality is this: customer has $25 left in his budget and wants two balloon bouquets at the door. He is given my number, I show what is available and hear again and again: “ Why didn’t I see it two months ago!”

    Balloon delivery users have nothing to with customers that have budget for serious decorations. May be once in blue moon they will have a kids party, so they need an arch under $100 and ask for discount.

    Same goes for small parties. Trust me, I did not turned down a single customer yet (20 years!), even if they have $150. This is less than my minimum, I took them hoping for some future business. So far it did not work. If they come back, they are still small parties in VFW...

    Also, if people see a company that deliver balloon bouquets from $30, they have a clear picture of what the business is. I doubt very much anybody would spend $20,000 on decorations with the business.

    So, restating my question, I know what to do with small arches, I take them. The real question is how to sell our ability to create unique décor (using balloons or fabric or lights), usually cheaper than any other alternative.

    Where good customers have come from so far:

    From my website: They call and I manage to convert them to my religion – let us be unique – and have some budget. The orange dinosaurs (https://www.wowballoons.com/Dino.htm ) was done - the customer wanted an arch for the first day in school. Or they call for something big, like explosive wall.

    From competitors-friends; they do not want the trouble of non-trivial work.
    From recommenders: hotels, halls and caterers.
    So far the site was the largest.

    Jay Hamilton-Roth, I will try to tie what I write in my blog to Martha Stewart Weddings magazine and David Tutera. I happen to know him briefly. Do you know that he started with small balloon delivery service? He has a nicely decorated window and a Jewish mother asked him to do a Bar Mitzvah...

    Karen, one friend of mine is working in Home Depot part time, another one, on of the best balloon twisters in the world, is surviving delivering balloon bouquets.

    I am optimists, I am sure there is a better way.

    Thanks again! Can you add anything else?
  • Posted by michael on Accepted
    Mike,
    My blood boils when I hear "no body is asking for balloon". If they wait for someone to ask, they aren't selling they're taking order and you better not be paying them much for that!

    I'm in this situation with a client so I understand. We're staying on the distributor march, but also going direct to the clients.

    You may not like your site, but it's a unique service. Get more involved in MPI. Get to the meeting planners yourself. Don't wait for the venues to sell your service.


    Michael
  • Posted on Author
    Thank you everybody!

    I will follow the Martha Stewart and David Tutera, also someone suggested to write a press release in the proper light, have it published and show the publication first.

    Thanks again to all of you!

    Mikhail Liberman

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