Home » Florists Lament Soaring Helium Costs
Florists Lament Soaring Helium Costs

Helium-filled balloons have long been a reliable source of profit for many florists — a popular, affordable add-on, especially around major holidays such as Valentine’s Day. In recent years, however, the price have helium has soared — when you can get it at all.

“About ten years ago, I would pay $60 for tank of helium,” said Chaim Casper of Miami Beach Flowers. “Today it’s $240, $250 — a 400 percent increase.”

So far Casper has always been able to obtain helium: “I have two tanks, and as soon as one empties, I order another,” he said. “That gives me a couple of months to play with.”

Others have been less fortunate. “We’ve never had an issue, because we have a well-established relationship with our supplier,” said Jennifer Barnard of Tillie’s Flower Shop in Wichita, Kansas. “But I know others have had trouble getting helium.” That includes retailers such as local Dollar Tree and Party City stores. “There will be times when we are the only people that have balloons in the city,” said Barnard.

Around this time last year, prior to Valentine’s Day, Barnard paid $300 for a tank of helium. For the past six months, however, the cost has been steady at $400.

The price that retailers pay for a tankful of helium ranges widely around the country and also varies by supplier, according to Chrystal Crain at All American Balloons, a wholesale distributor in Arlington, Texas, from approximately $200 to $400. That’s for a large tank that holds 219 cubic feet of compressed gas; smaller tanks are also available.

Supplies have been sometimes scarce over the past decade, shooting wholesale prices up, for a number of reasons. To begin with, helium is a limited, non-renewable resource, a byproduct of mining for natural gas. Current supplies of helium come mainly from just three places: the U.S., Algeria and Qatar. Supply from two of those places is vulnerable to disruption by war and other crises.

About 40 percent of the world’s supply comes from gas fields in the U.S. But the U.S. government has played an active role in regulating that supply since 1925, when massive reserves were discovered in Kansas, Oklahoma and Texas. At the time, helium was valued for its wartime use in airships.

Only in the latter half of the 20th century did federal control over helium begin to loosen. In 2018, the U.S. Bureau of Land Management held the latest in a series of public auctions that in effect set the average market price of helium. It rose by a whopping 135 percent.

Why? Not only are the world’s helium reserves dwindling, but demand for helium is rising — and not just for party balloons and florist add-ons. With the lowest boiling point of any element, liquid helium is useful in keeping things cool. It is now used in medical imaging (MRIs), scientific research (superconductors) and the production of electronics (including television screens).

Potential new sources of helium have been identified in the U.S., Canada, Tanzania, Qatar, and Russia. Development of these gas fields could help relieve the global shortage. But given the competition for a finite resource with high-priority applications, it is unlikely to lower the price significantly.

For many years, the standard price for adding a helium-filled, 18-inch Mylar balloon to a floral arrangement was $4.99. Today, that price has risen to $5.99 on orders from FTD and Teleflora. Casper and Barnard, likewise, both charge customers $5.99 — although Casper said he will have to raise it further if the cost of helium goes up any more.

It takes half a cubic foot of helium to fill an 18-inch Mylar balloon, according to both Crain and Barnard — although Barnard reported that today’s Mylars are often slightly smaller, more like 16 or 17 inches. If a large tank — one that holds 219 cubic feet of helium — costs $200, that’s 45 cents per balloon. If the tank costs $400, that’s 91 cents. At Tillie’s Flower Shop, Barnard said the price she currently pays for half a cubic foot of helium would be around 74 cents.

The balloon itself may cost anywhere from less than 50 cents up to $1 or more. At the high price for helium, then ($400), and if the balloon costs $1, a florist would be paying $1.91 for the cost of goods. Charging $6 retail achieves a three-times markup.

That’s the markup that Barnard relies on for both helium and balloons to make sure that the sale is always profitable at Tillie’s Flower Shop (where, she says, she never pays more than 85 cents for a balloon). The markup is also meant to cover the small amount of labor required to inflate the balloon. In fact, it takes very little time, skill, or experience to fill a balloon with helium, providing you have invested in the right equipment (for Mylar, that’s a foil tip regulator, which keeps the valve from overinflating).

For Barnard, price has not been an issue in dealing with florist-to-florist orders. “My staff is good about communicating with the sending or receiving florist,” she noted. They are also careful to let customers know that because of the nationwide helium shortage, some florists who normally offer balloons may not have any helium. “Most people are pretty understanding,” said Barnard. “They’ll say, ‘If they don’t have it, just add the value into the bouquet.’ ”

For his part, Casper is hopeful that he will be able to continue selling helium balloons as a profitable add-on. “It’s an easy upgrade when you’ve already made a sale,” he noted appreciatively — one that adds perceived value in terms of height and conspicuous flair.

Bruce Wright is a contributing writer for the Society of American Florists

 

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