This post was written by Brian Lawrence, one of the industry’s foremost authorities on marketing in the wedding industry. Brian has consulted with many wedding professionals and wholesale suppliers at www.brianlawrence.com. Brian also owns Local Traffic Builder, a nationally-known web design, marketing and social media firm serving the wedding and event industry. He is the author of “The Wedding Expert’s Guide to Sales and Marketing” and “The Invitation Business Report” and has helped thousands of industry professionals with his marketing insights through personal consultation, books, seminars, blogs and articles, and speaking engagements at leading industry conferences.
Pricing strategy: A source of frustration for many wedding professionals. Some see it as an art, others see it as a science; but it’s a vital part of the wedding industry for all of us.
Deciding how much to charge for your products or services is no easy feat, and there are a lot of factors involved: your offerings, local competition, regional wedding costs, and more. It’s a lot to worry about, but it doesn’t have to be a stressful process. Below are four approaches that will help your wedding business hone your pricing strategy!
1. Check out the competition
Identify your local competitors and see what’s working well for them. What packages do they offer? What range of prices are they working with? Do they list their pricing on their website or online listings? While you shouldn’t copy your competitors, find out what makes your business stand apart from theirs and capitalize on that differentiation. If your competitor only offers two pricing packages, trying offering a third tier. If they don’t list their pricing on their website, try listing yours to give potential clients a better idea of what to expect.
2. Consider your business goals
When evaluating what makes your wedding business stand out from the competition, think about where you can strengthen your source of revenue. The best pricing strategy makes the most of your innate business strengths. What makes your business special and drives customers to you? Are you following the pricing strategy that emphasizes your business as the better or more high-quality choice, or are you merely attempting to undercut your competitors? Many wedding professionals only consider externally-influenced pricing strategies that do not actually reflect the quality of their business, which is not as successful in the long term.
3. Identify your ‘Golden Mean’
As humans, we like to avoid extremes, and the same goes for our attitude towards buying. When given multiple options, we gravitate towards the middle tier. It’s the “safe” choice, as the lower options might be too bare and the higher options too extravagant. So, for your pricing strategy, consider where your middle options are in the products or services you sell and highlight those. Providing at least three options is the best way to really develop the ‘Golden Mean’ in your pricing strategy – take the average cost of the top tier and bottom tier to set the baseline for your middle package. You can also call this package the ‘Most Popular’ to indicate that it’s a good deal!
4. Don’t be afraid to start charging more
You absolutely can start charging more as part of your pricing strategy overhaul to improve profitability. But you can also be creative by including additional services or discounted add-ons in your packages without reducing the price on your core services. You’ll have the added benefit of making a better connection with potential clients and closing more sales because of the perceived added value. It empowers you to make your decisions about charging what you’re worth, rather than lowering prices just to please customers.
Pricing strategy should not be taken lightly! Knowing you can continue to fund your business and its needs, developing a solid source of income for yourself, and truly offering the best you can to your future clients requires quality time and thought. These approaches will help you iterate on your pricing strategy to continue to meet the needs of the market and your own bottom line.