Increase Your Revenue for Children's Birthday Parties in your studio

November 8, 2023

Did you know that The International Association of Amusement Parks and Attractions reports that the average revenue for hosting a children’s birthday party is $370!  What is the average price of your children’s birthday party packages?  Do you offer options to allow parents to spend more if they want to?

In their book, The Experience Economy, Joseph Pine and James Gilmore say we have progressed from an economy of commodities to one of manufactured goods, to delivered services, and finally to staged experiences.  They use the birthday cake as an example of how times have changed:

“Most baby boomers can remember childhood birthday parties when Mom baked a cake from scratch. That she actually touched such commodities as butter, sugar, eggs, flour, milk, and cocoa.”  The ingredients probably cost about 20¢ to 30¢. Over time, the commodity-based birthday cake was replaced by packaged mixes ($2 to $3), then delivered cakes ($20 to $30), then staged parties ($200 to $300).

Focus on the Experience

Today’s consumers are interested in purchasing experiences, not just products.  PYOP and Ceramic Arts Studios are poised to take advantage of this trend but they must be careful not to underprice and undervalue the experience they offer.  Consumers are willing to pay more for the experience of creating memories in your studio for their child’s birthday.  Your children’s birthday party packages should be updated each year to keep up with the latest trends and provide options for repeat parties with new themes and offerings.

I often hear studios that discuss the pricing of their birthday parties and usually they talk about the Mom who tries to circumvent the party rules or complains about the pricing.  This is a signal that you are pricing to the wrong market segment.  When it comes time to spend on a child’s birthday party, there are a lot of parents out there who are not looking to have a low-budget event.  The days of hosting a party at McDonald’s are long gone.

Create Three Options for Children’s Birthday Party Packages

As a best practice, you should offer three different children’s birthday party packages.  The lowest package should be the one you are using now that is geared to the lower priced consumer.  Your highest price option should be roughly double the price of the lowest priced option.  It should include more value like maybe food, a character appearance, or bigger pieces to paint.  The middle option should be purchased about 80% of the time and will include a better experience than the cheaper low package, but not the over the top experience of the high-end product.

By offering three package choices and using your current party package as the low option, you will become more comfortable offering the higher priced options and see how often customers want to spend more money with you than you are currently allowing them to.  The psychology of three options is proven to increase your revenue.  Try it out and see for yourself.

At PYOP Accounting, we specialize in working with PYOP and Ceramic Arts Studio Owners throughout the USA.  Our industry knowledge is focused on taking the headaches out of accounting and helping you grow your studio’s value using specific metrics for the PYOP industry.  Don’t you owe it to yourself to see how we can help you?  Schedule a complimentary chat with us today at