How to Start a Profitable Birthday Party Treat Bag Business from Home

Why Parents Need Professional Party Favor Services

Parents often scramble to assemble party favors the night before their child’s birthday celebration, turning what should be a fun detail into a last-minute stressor. This common oversight creates the perfect opportunity for your side hustle: creating custom, thoughtfully designed gift bags that save parents time while delighting young party guests.

Starting a gift bag service requires minimal upfront investment. Begin by researching popular themes and characters, then source affordable bulk items like small toys, stickers, candy, and craft supplies from dollar stores or online wholesalers. The real value you provide comes from thoughtful curation and presentation—matching items to specific themes, age-appropriateness, and creating an eye-catching presentation that makes parents look good.

Marketing your service is straightforward: create sample bags to photograph for social media, partner with local party venues or bakeries, and offer early-bird discounts to encourage advance booking. Consider tiered pricing options, from basic bags to premium collections with personalized items. Parents will gladly pay $5-15 per bag to cross one more task off their party planning list, especially when you deliver ready-to-distribute favors that make their child’s special day even more memorable.


Example: Dinosaur Treat Bags

Let’s look at some specific examples of party favor bags at different price points to help you visualize the possibilities and profit margins.

Dinosaur Party Bag – $10 per bag

Total Cost – $4.25 per bag

Total Profit per bag – $5.75

For a party of 15 children, you’d make $86.25 in profit for approximately 1-2 hours of shopping and assembly time.


How to Start Your Birthday Party Treat Bag Business

Getting started with a party favor business is simpler than you might think. Follow these steps to turn this opportunity into a profitable side hustle:

1. Research Your Local Market

Before investing in supplies, spend time researching what parents in your area want. Check local Facebook parenting groups, birthday party venues, and even ask friends with children about their pain points when it comes to party favors.

2. Define Your Offerings

Start with 3-5 popular themes that have broad appeal (superheroes, princesses, dinosaurs, unicorns, sports). For each theme, create:

  • Basic package ($5-8 per bag)
  • Standard package ($8-12 per bag)
  • Premium package ($12-20 per bag with personalization)

3. Source Your Supplies

Build relationships with suppliers for consistent quality and pricing:

  • Dollar stores for basic items
  • Amazon or Alibaba for bulk purchases
  • Craft stores for packaging materials
  • Local print shops for personalized items

4. Create Sample Bags

Invest in creating 1-2 sample bags for each theme and price point. These will serve as your portfolio and help set expectations with clients.

5. Set Up Simple Systems

Even small businesses need organization:

  • Create a basic order form for clients to fill out
  • Develop a pricing calculator spreadsheet
  • Establish a timeline (require orders 7-10 days in advance)
  • Set up a simple booking calendar

6. Market Your Service

Focus on where parents of young children spend their time:

  • Join local parenting Facebook groups
  • Partner with party venues and bakeries (offer commission)
  • Create an Instagram account showcasing your creations
  • Offer referral discounts to existing customers

7. Deliver A Special Experience

The key to growth is exceeding expectations:

  • Include a thank you note with every order
  • Add small surprise upgrades occasionally
  • Request testimonials and photos from satisfied customers
  • Follow up after parties for feedback

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