How to Start Halloween Costumes Business
Starting a Halloween business is more than just the standard retail of superheroes’ costumes. However, the business offers those interested in ghoulish treats a chance to profit from what they love and enjoy doing. There are specific business requirements that all Halloween costume businesses must address before opening their doors to the ghouls and goblins who are preparing to celebrate their holiday.
However, before we delve into that, let us examine some statistics.
Halloween Industry Overview
According to statistics by the National Retail Federation, it was reported that the total retail spending for Halloween in 2019 was $8.8 Billion. This fell $200k short of 2018’s $9Billion.
Slightly fewer than 172 million people acknowledged that they would celebrate. This amounts to approximately $86.27 per person.
Why Halloween is so popular
One of the primary reasons why Halloween is very popular today is due to its affordability, especially when compared to thanksgiving and Christmas holidays, it’s the least expensive, and also it packs loads of fun. Some of part of this was a permanent shift to thrift that took place during the great recession of 2008.
Moreover, shoppers are willing to part with hard-earned cash on something only when it offers lots of value. And Halloween does precisely that.
Another reason for Halloween’s popularity is that consumer confidence has reached its peak for the past decade. Nevertheless, people aren’t allowing the volatility of the world’s economy to deter them from having fun.
Some statistics
| Year | Americans Celebrating | Average Spending Per Buyer | Total Spending |
| 2012 | 170 million | $79.82 | $8.0 billion |
| 2013 | 158 million | $75.03 | $7.0 billion |
| 2014 | 162 million | $77.52 | $7.4 billion |
| 2015 | 157 million | $74.34 | $6.9 billion |
| 2016 | 171 million | $82.93 | $8.4 billion |
| 2017 | 179 million | $86.13 | $9.1 billion |
| 2018 | 175 million | $86.79 | $9.0 billion |
| 2019 | 172 million | $86.27 | $8.8 billion |
Note: Not all of those celebrating are buying anything. That’s why “Total Spending” is less than “Average Spending” times the number of “Americans celebrating.”
Possible Halloween Business Ideas
So what kind of Halloween businesses would yield the highest revenue?
The best way to determine this would be to examine the most popular Halloween product. You may have guessed the two most popular costumes customers always buy to be pumpkins and candy. Some other most purchased categories of Halloween items are; costumes and decorations. (According to statistics, Halloween is the second-biggest decorating holiday of the year, and is surpassed only by Christmas).
As an intending Halloween business opportunist, we recommend you strike off the first two from your list because many large-scale corporations are already manufacturing pumpkins and candies. So you competing against them, your chances of survival in that niche are pretty much slim.
Nevertheless, the latter two mentions, Halloween costumes and decorations offer scope to develop business opportunities, especially opportunities to accommodate a niche market.
For example, you could start your Halloween business by:
- Creating “authentic” period costumes for adults
- Presenting in–house parties for kids(could be a substitute for the trick – or – treating)
- Offering Halloween music for social events
- Providing Halloween decorating services for business or residential services
However, for this research, we will be concentrating on Halloween costumes.
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Bag profits with your Halloween Costume business
The purpose of this article is not to present every possible Halloween business opportunity that exists but to help you understand the potential of the Halloween market and possibly get you thinking about possible Halloween business ideas. Ideas that could potentially turn to a profitable small business.
Going forward, don’t just consider Halloween as a time to party and buy lots of candies. Halloween presents several bossiness opportunities that any budding entrepreneur will not overlook.
Halloween Pet Costume Business Opportunities
According to the National Retail Federation, it is expected that Americans will spend a staggering $490 million on Halloween pet costumes this season. This move is more than double what they dropped to dress their dogs, cats, and other critters in 2010.
According to the rover.com survey, it was reported that over 51% of hundreds of dog owners around the country plan to dress their hounds for Halloween, with each having an average spend of about $20.
Classical seasonal specters like witches and ghosts are among the popular costumes on the rover’s list and movie and TV characters.
American are indeed spending more on their pets than ever before, and this claim is according to the American Pet Products Association, as pet owners laid out a record-breaking $72.56 Billion for food, supplies and over the counter medications, veterinary care, live animal purchases, and other services in 2019.
Five essential steps to starting your Halloween business
The planning stages
Proper planning for any business requires the creation of a business plan – and this is a critical phase for any enterprise. Your business plan will help you direct the day-to-day activities and position your business for potential growth.
A business plan should address essential topics related to general business concerns, such as finance, target market identification, and decisions related to the company’s structure, such as acting as a single business owner or a partnership.
Although these factors apply to every business, keep your particular business in mind when crafting each area of your business plan.
Decisions
The creation of a business plan will address a range of significant points for your Halloween business. It will determine whether you plan to work on a seasonal basis or plan to stay open all year round.
If you plan to stay open all year round, you will need to identify the type of products that you hope to sell beyond the typical Halloween season, such as costumes related to other holidays.
These decisions would then help you understand questions about your target audience, such as the average age of your targeted audience.
Keep in mind that parents not only buy costumes for their children however, they also buy costumes for themselves.
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Opening
If you intend to sell costumes and Halloween products only onsite, you may need to consider the location of your business. Temporary Halloween stores can be able to secure cheap retail space in empty buildings.
Such leases may also be tailored for short-term use, such as 60 or 90 days. Permanent stores would need to apply for longer lease terms. Before opening, contact the local fire department and have them perform a safety check.
This will involve providing you with a certificate stating your building occupancy terms. Like any business, the Halloween business needs to follow the licensing requirements for your particular region. This also includes obtaining a business license and applying for a Tax identification number from the IRS.
Marketing
Bear in mind the seasonality of Halloween when designing marketing strategies. Even if you’re planning to stay open all year round, most of your marketing activities should be concentrated on the Halloween season.
Start early and get a word about your new company using social media and a dedicated platform for online shoppers and product previews.
Other ways to market the Halloween business include putting the costume-clad employee out front to gain attention.
Permanent stores can display any things they sell that will bring value to the consumer for the rest of the year, such as Easter and Christmas decorations and costumes.
Considerations
The place you select should have plenty of storage for the sales floor and dressing rooms to try out costumes and storage space for inventory.
Specific factors to be taken into account when starting a Halloween business include having a manufacturer or a wholesaler fulfill the product orders.
When deciding on a manufacturer, take into account any shipping costs that you can incur and the type of discounts provided for larger purchases.
Pay close attention to prices before, after, and after the Halloween season.
Stock on products, such as face paint and Dracula teeth, when costs are at the lowest and stock them properly. This will help to reduce savings and increase the profit margin.
The top 10 most popular Halloween costumes to stock into your business
- IT
For “IT Chapter Two” in theaters, “IT” Halloween costumes became one of the most searched on Google in the United States.
- Witch
A classic Halloween costume, the witch was the second most searched costume in September.
- Spider-Man
If you’re a fan of comic books or movies, Spider-Man became the third most popular Halloween costume in September.
- Dinosaur
Most people are trying to bring the Jurassic period to Halloween this year, as dinosaur costume searches reached the top five.
- Descendants
Disney-inspired costumes “Descendants” will be popular this year since they’re the fifth most searched option on Google in September.
- Clown
If you make it spooky or funny, you’ll be in good company if you wear a clown costume this Halloween — only five costumes were checked more in the US in September.
- Fortnite
The famous video game is expected to inspire a lot of costumes this Halloween, coming in at No. 7 on Google’s list.
- Chucky
This creepy doll-turned-killer was No. 8 at Google’s most successful costume quest in September.
- The 1980s
Leggings scrunches’, and leg warmers are all the rage of this Halloween. Influenced by the 1980s, Attire entered No. 9 on Google’s list among the most searched Halloween costumes in September.
- Unicorn
Regardless of whether colorful or sparkling, unicorns were Google’s 10th-most-searched Halloween costume in September.
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Tips to help you scale up sales in your Halloween Costumes Business
Halloween keeps increasing in popularity. Using the ‘tips’ in this post, you can ‘treat’ yourself to extra revenue—regardless of the type of Halloween business you run.
Halloween is an increasingly popular holiday in America. The National Retail Federation’s 2012 holiday survey showed that seven out of ten people are preparing to celebrate it. More than half of us can decorate our homes or yards, while one-third of us plan to either host or attend a Halloween party.
What’s more, Halloween-related spending continues to grow. Sales of popular Halloween items are projected to hit $10 billion in 2022, with an average consumer spending $96 on costumes, decorations, and candy.
If this is what your business sells, then Halloween is a perfect opportunity for you. Make sure that you make the most of your unique personalized and friendly service to lure customers into your store, rather than the big-box store on the outskirts of town.
Even if you don’t sell masks, stage make-up, or lawn decorations, you can still sell some Halloween business. Restaurants may also sell seasonal specials. Service companies can sponsor competitions or offer an ‘excellent discounts’ on their services. Beauty salons can also sell “make-up and hair” deals to all “Princesses,” young and old. These ‘tips’ can help you make the most sales from the Halloween season.
Decorate your business establishment
Understand, when planning decorations, you want the atmosphere to add value to your customers. Understand that town neighborhoods tend to be edgier than suburbs.
So, a shop that caters principally to young urban professionals could have employees dressed (and acting) as zombies. A store catering to young families or girls, on the other hand, might use happy ghosts and adorable black cats as the key elements.
Work Smart
Do not even forget to customize your website to suit the Halloween season. This is essential if you intend going online. Grant a Halloween makeover to your website. Promote vacation specials on your home page. The same applies to your Facebook page: Pick a new cover photo and share upcoming events and specials.
Participate with other businesses
To be part of the community is one of the advantages of a small business. Find out what occasions are being organized by your local Chamber of Commerce or Merchants Association and join the planned festivities.
If none is scheduled, reach out to local businesses and propose joining forces with other special Halloween promotions and events. The presence of many businesses will bring more visitors.
Communicate with your customers
Make sure the customers know about upcoming events. In addition to maintaining your website and your Facebook profile, send an e-mail to your mailing list with “scary/good deals.” create exclusive deals for your Facebook fans and Twitter followers.
Plan a Variety of Events
Halloween is much more than just one day — the celebration spans through the whole month of October. You will also schedule activities to attract consumers during the run-up to Halloween and on the day itself.
- Organize a contest — either on your own or with other local businesses. Many contests, such as the Pet Costume contest, can create awareness and generate traffic to your business. But with a little planning, you can start creating a contest that helps people get to know more about the products you sell. For example, put ghosts in different locations throughout your store, and have customers find and count them. All who locate all the ghosts are entered into a Halloween prize draw. For example, Wauconda merchants do this on a broader scale by hunting the town-wide scavenger — participants have fun and learn more about local businesses.
- During trick-or-treat hours, treat children — and their beleaguered parents. Parent-treats may include more adult candy (such as dark chocolate truffles), a free sample of one of your product lines, or a coupon for future use. (Of course, the distribution of this kind of service does not need to be limited to Halloween. You may want to offer this kind of treatments during the week before that.)
- Keep open until midnight at Halloween. Hold a “Midnight Madness” sale and offer costume discounts to the customers. Have “Mystery Bags” that sell for $1 and hold a range of small items that you would not be able to sell otherwise.
Anticipate the rest of the holiday season
Enable your promotions double-duty. Halloween marks the beginning of the holiday season that continues into New Year’s Day.
Capitalize on this by pairing a Halloween-themed bid with a voucher to be used later in the year. For instance, a bakery could offer a voucher for a Christmas item with each package of pumpkin muffins or Halloween themed cookies.
Irrespective of your business, find ways to capitalize on the fun that Halloween has to offer. Doing so would reward you with improved profits and happier customers.
Identify which elements of the holiday are in alignment with your business.
The safest way to increase business is to deliver what the consumer is looking for. That’s why it’s essential to recognize the elements of the holiday – such as costumes, home decor, make-up, etc. – appropriate your inventory with the goods and services you provide, and then execute them innovatively and appropriately.
Many businesses have a direct link to holidays and find it convenient to sell to the right audience. For instance, NYX Cosmetics has devoted a whole page of its website to Halloween looks and ads, while also working with award-winning make-up artists to create unique characters and make-up looks. The business also offered in-store services to apply Halloween make-up to their customers.
Of course, the beauty and cosmetics industry has a close link with Halloween, because most people use make-up for their costumes. That being said, it isn’t always a simple connection for other businesses. Customers shop in many other stores for their Halloween needs – according to a survey 42 percent of customers said they were planning to shop in a discount store as part of their Halloween shopping.
How can you make your Halloween business more profitable?
Most of the best ideas for what to do after you’ve finally opened your Halloween costume store have already been listed. However, the absolute best thing to do to make your business to become even more profitable is to learn the habit of early preparation. Many of Halloween’s most successful pop-up shops do begin their preparations a year ahead.
Adopting this, will allow you time to locate the right locations, negotiate with any franchises, and discover what makes the best pop-up stores to be successful. With the right preparation, you can make a profit for two months and then disappear into the night like any other trick-or-treater that’s in a hurry to count up what they’ve managed to accumulate!
How to keep your customers coming back to you for repeat business
The best thing about attracting and retaining customers is that the Halloween business has a built in ticking clock. So essentially, the closer it gets to Halloween, the busier you ought to get. In other words, you should be attracting a pool of customers.
You could decide to offer percentages off any purchases to your customers when they bring you business or make a referral to you, to retain customers.
Also, you could hire teenagers to paint their faces and go around distributing your business fliers, this could another creative way for you to get your business in front of people. Also when you return to the same location and store front will help your business build loyalty. This is because your customers will know where to find you.
What are the skills and experiences that will help you build a successful Halloween costume shop?
Understand that if you have any experience that you have managing a business or even working in retail business can be very helpful when you are setting up your Halloween costume shop.
Another thing can be helpful is your familiarity with pop culture, Moreso, this familiarity will be helpful to you in gauging which costumes are going to be trending for children and adults alike.
Lastly, your existing relationship with local businesses would also help you in locating a place with a vacant storefront which would be willing to provide you with a temporary lease at an agreed price.
Read Also: How to Adjust Price to Maximize Profit
Conclusion
Halloween, more than most other holidays, is all about creativity – and this is why brands need to be creative when they come up with their marketing efforts.
Food and beverage companies, for example, can share artistic Halloween-inspired recipes or cocktails on social media and on their websites to inspire and illustrate how their products can be used for holidays.
The reason why so many people fail in their businesses is due to lack of experience, however, recommend that before venturing in to this Halloween business, you make your due diligence and get busy building.
Considering starting your Halloween business? The strategies listed here are more than helpful and can put you a step ahead of those who do not have this basic knowledge.
