Photo by Vanessa Joy Photography
I was recently questioned for using the term “minimum wage” in one of my videos on YouTube. The commenter assumed I meant that people should be paid under what he deemed as “living-wage”. It wasn’t my intent, but it did get me thinking. How many wedding professionals, business owners even, aren’t paying themselves a decent living wage?
It’s easy to think we’re making a ton of money in the wedding world because we take in a lot of money. But when was the last time you evaluated your costs? Better yet, when was the last time you looked at how much time your business commands of you?
The easiest way to determine how much you should charge is to add up your cost of sales (the amount of money it takes to actually do the job – typically staff and product costs) plus the cost of business (marketing, insurance, overhead, etc) and multiply that 3-5x. Then, as you grow in experience and skill, your pricing should grow to accommodate that plus inflation. To see a breakdown of that pricing method, download this pricing video.
Now, you may come to that profit number per job or per year and think, “I’m doing pretty good.” But now I want you to take that number and divide it by how many hours you work to get it. Are you making a living wage or just minimum wage?
A living wage should mean that you can save for retirement, and I believe that’s where a lot of us fall short. Let’s face it, weddings are a tough business. They’re stressful, long hours, physically strenuous and on weekends where you’re sadly away from friends and family. Are you prepared to retire one day? Or are you hoping to have a second career?
Saving for retirement is no easy task. It’s one that takes a lot of diligence over a long period of time. Dave Ramsey would suggest that we save 15% of our income for retirement every year. That seems like a huge number when you’re currently saving 0%. But you want to know what’s an even bigger number? The amount of money you need to have saved in order to retire.
Chris Hogan says that “Retirement isn’t an age, it’s a number.” If you want to see what your number is, go take his Retirement IQ quiz. Shocked? I sure was!
The best part of all of this? You have control, my friend! You own your own business so you can immediately make adjustments to start cutting spending and increasing income so you can start down the retirement track — even if you just started in the wedding business.
I didn’t write this article to give you three easy steps to retirement. I wrote it to light a fire under you because no one talks about this. Maybe it’s because we truly love what we do so much that we can’t picture ever not doing it. I get that and I’m actually with you on it. But, that doesn’t mean one day you won’t want to travel more, work a little less and spend most of your time with the people you love vs the people that pay you.
I’ve found my answers to business and personal finances in the two books. Entreleadership and The Total Money Makeover, both by Dave Ramsey. And I want to give them to you. I’ve got nothing to gain from this. Dave Ramsey is not sponsoring me. I just want to see my fellow wedding professionals have a plan and succeed at it.
The week this article posts I’m holding an Instagram Contest. Just head over to www.Instagram.com/vanessajoy, follow me and comment on one of my pictures telling me why you want to retire one day. Make it funny, make it serious, whatever you’d like. 7 days after this article posts I’ll pick the winner and send you both of those books so you can get started on living your dream after your dream.
See you there!
Vanessa Joy has been an influential photographer in the wedding community for a decade. Starting her photographic journey in 1998, she has since earned 5 college degrees, and has spoken at almost every major convention and platform in the industry such as CreativeLIVE, Wedding MBA, WPPI, ShutterFest, Imaging USA, WeddingWire World, and Mobile Beat. Recognized for her talent and more so her business sense, her clients love working with her and industry peers love to learn from her generous, informative and open-book style of teaching. Check out more of her resources at www.BreatheYourPassion.com