» Pricing Do’s and Don’ts

Receiving a question about pricing can be daunting and tricky to navigate. On the bright side, receiving a price inquiry is a definite sign of interest and should be exciting! Think of it as a buying signal rather than a red flag. If they are reaching out, it means that they’ve vetted you and you’ve made it to the final round, so making an inquiry is simply the next step for them.

We’ve pulled together a list of Education Guru Alan Berg’s best tips on pricing do’s and don’ts to help prepare you for how to respond to those often-dreaded pricing questions when they hit your inbox.

DO’S

  • Do reply as quickly as possible to an inquiry. Did you know 50% of buyers choose the wedding professional that responds first? Replying instantly can almost guarantee that the inquiring couple is still in the same place mentally and physically rather than having moved on to other things. If you can catch them by responding quickly, there’s a higher chance of receiving a response and a continuing the conversation.
  • Do reply on the same platform that they used for their inquiry. Give couples all the possible ways to contact you, let them choose what works best for them, and then promptly reply on that channel. 48% of couples are frustrated when vendors don’t reply using the same channel they reached out on. So, start with their preferred channel and then request moving to another channel of communication later on if it’s necessary for you.
  • Do acknowledge a question about price, don’t dodge it. If you need more information to give an accurate price, that’s completely fine! Just be upfront and transparent about it. Let them know that you are going to get them an answer, you just need to gather a bit more information about their big day first! Then, make sure to ask questions to start gathering that information to show that you are taking the necessary steps towards getting them that answer.
  • Do provide some pricing information on your website or WeddingWire Storefront. Couples are likely to distort their budget or may have a skewed sense of it (couples tend to underestimate their wedding costs by 40%!). Ideally, your pricing information would be available to them on your website and/or WeddingWire Storefront before they even reach out. 88% of couples want to see pricing of some sort before getting in contact with a vendor. That means you could be cut from the short list before you even have the chance to talk to them, so don’t hold out.

DON’TS

  • Don’t assume that a couple can’t afford you just because they are asking about price! How often do you determine the price of something before buying it? Probably all the time! Because this is a first time shopping experience for most couples, they don’t necessarily know what their needs are or what they are looking for, and therefore don’t know what other questions to ask. You are their guide, so help them out!
  • Don’t lead with your lowest price. Typically, the first number you hear is the number you expect to pay, which ends in an unfair result for everyone. Instead, give a price range. As a simple example, you can say, “Our prices range from $x – $x, with our most popular option being $x.”. Along with a price range, consider pointing out some of the ways you differentiate in order to sell them on you, not just your price.
  • Don’t be afraid to address a low budget. If a couple gives you an idea of their budget for your service and it’s far below your pricing, politely let them know that you completely understand but that you cannot deliver the quality of work that you do within that budget. If possible, try to give them other options that you can provide, although it won’t include everything that they want, within their budget.
  • Don’t dump data and attachments. Instead, give a short, concise answer and try to make sure that it fits on a smartphone screen without the need to scroll. Most people will be answering and opening on their phones and if the information given is too long or overwhelming they aren’t likely to read it or keep it.

» Let’s Talk About Price in Your Lead Replies

Price is a difficult thing to talk about— but it shouldn’t be. WeddingWire Education Guru Alan Berg insists that you shouldn’t dread pricing questions but rather, you should embrace them. Why? It’s the quality of conversation in your lead replies that leads to a sale, and if a couple has to pay for your services anyway, price need not be the elephant in the room. To help open up your conversations, especially when it comes to talking about price, Alan Berg answered some of your most frequently asked questions about handling price questions in lead replies.

If my business offers multiple services, and a lead says that they are interested in my services and asks what my prices are, how do I keep that email short while answering a lot of questions buried in that “simple” question?

As it turns out, this reply isn’t as long as you might think. Instead of sending all of your prices for each service you offer, simply reply “What services were you interested in more specifically?” This reply will then not only narrow the length of your eventual price reply, but will also ensure that you are providing the exact information your client wants without overwhelming them with pricing that doesn’t apply to them.

But what if someone says they are interested in multiple services of mine and asks for pricing? How do I still keep that reply short?

Let’s say you are an entertainment business and a lead says that they are interested pricing for a DJ, dance floor and lighting. All you need to do is list the prices (or price ranges) for the three (and only the three!) they asked for, and ask a follow up question to keep the conversation going. “What venue did you have in mind for hosting your reception?”

I am totally guilty of sending too much information, specifically with price, because I feel like I have to. How do I send less?

There are four ways to handle price:

  1. You can tell them the exact price. While this is specific and can be helpful, it can be quite hard to do sometimes without the full scope of information from a potential client.
  2. You can not tell them the price and avoid questions about it at all costs… but we all know this isn’t good practice.
  3. You can give the starting price. You need to exercise this one with caution as you might have services that go far above your starting price. Thus, sometimes this tactic can be very misleading to couples who think your costs are much lower.
  4. You can give a price range (Alan’s favorite way to share pricing information), and share your average price.

Giving a price range lets you weed out people who might not be able to afford your services and sets realistic expectations with the potential client. It also allows a conversation to start as it gives a ballpark figure where you can then ask follow up questions to keep the conversation moving forward, such as “What services were you considering?.” (moving you closer to the sale!).

What if they never ask about price/don’t ask about it early on?

Hold off on mentioning price at the beginning (unless they ask outright). Maybe this potential client was referred, or heard a quote and knows your price already. If you feel worried that it has yet to be mentioned, feel free to bring up price in the second half of a new reply to calm any anxiety.

“By the way, I just wanted to let you know about our pricing since we haven’t talked about it and I wanted to make sure you were comfortable moving forward. Our range for what we have been discussing is between a and z.”

After you mention price, go back to the context of the first half of the reply to get off the price discussion and leave the ball in the client’s court as to if s/he wants to discuss price further. Remember, however, that this isn’t necessary. If they didn’t ask about price well into a discussion, they probably know what they need to know already.

If I have a beautiful document for my pricing and a lead inquires about price, can I send that attachment?

No! Even if you have a brilliant, beautiful document that outlines price, or any other detailed culmination of your business’s information, don’t send it. Alan insists that you should never reveal too much. Not only can attachments overwhelm couples and be difficult to view on mobile devices (the vast majority of WeddingWire consumers reply to emails on mobile), but an attachment doesn’t make the sale, you do! Attachments halt conversations, and remember conversation is what leads to a sale.

Every time I quote a price or give a range through email, I never get a reply back. However, when I am on the phone, my closing rate shoots up. What can I do?

Alan states that it depends on the conversation you are having. If you aren’t getting replies back, see if your reply left a dead-end or if it encouraged further communication. Again, emails should be like phone calls where a back-and-forth is created through questions. In situations like this, you are probably closing over the phone because you are good at conversation. So, utilize that strength in your emails and formulate them to read just like you would talk over the phone.

If you are a service that has a flat rate, try giving the price and then say “were you looking to do any special touches like a sand ceremony?” or “were you going to write your own vows or is that something you would like me to help with?” This way, you give a price and still follow up with a question to guarantee a reply and keep the conversation going.

Talking about price doesn’t need to be a touchy subject or something that is difficult to discuss in lead replies. We hope that by answering these questions, you have learned to welcome price questions and feel confident when covering them in your lead replies.

These tips originally appeared in WeddingWire’s Webinar “Replying to Leads” with Alan Berg, WeddingWire Education Expert and CSP. Premium Members can view the webinar recording in their accounts.

» Why Price Questions Shouldn’t Worry You

Photo by Riverland Studios

This article was written by WeddingWire Education Guru Alan Berg, CSP.

As we enter a new year, and get into the heart of engagement season, I want to remind you that price questions are buying signals. If you know that, and you live it, then I could make this the shortest article I’ve ever written, but let me fill in the details for the rest of you.

By the time you have someone asking you what you’d charge for your services for their wedding, or event, they’ve already done a lot of filtering. Most of your competitors will never hear from this same couple, or customer. It’s very likely that they know a little, or more, about you, from your website, WeddingWire storefront, reviews and more. You only got the inquiry because they like what they’ve seen and heard so far.

Don’t blow it!

Since you’ve made it to their short-list of companies they think can do what they want, and produce the results that they want, don’t ruin your chances with them by taking the lead for granted, or worse, assuming they can’t afford you just because they’ve asked about price. Don’t you ask about price when you’re the customer? Does it mean you can’t afford it because you’ve asked about price? Of course not. It’s just one of many pieces of information you need to make a decision. The thing is, when you’re shopping for something you know, you ask about price after you find out whether it fits your technical specs.

For example, if you need a new camera, you’ll ask about resolution, features, compatibility with your lenses, etc., and then, once you’ve checked off all of your technical needs, you ask about price. If it doesn’t fit your technical needs, then price doesn’t matter. The same applies if you need a new vehicle for your business. Price will only matter after you determine that it meets your technical needs. It doesn’t mean you can’t afford that truck, it just means you have needs that are more important that price.

They don’t know, what they don’t know

The challenge for your customers is that they don’t know how to articulate their needs. They’ve likely never shopped for your product or service before, so they’re not equipped with how to shop. Or, they’ve been to your website, read your online storefront, checked out your reviews, seen your photos and videos, and they already think that you’re a good fit. So, the only questions that they have left are: Are you available? and How much do you charge?

When they ask about price…

  • It may not mean they’re looking for your lowest package/offering
  • It may not  mean they’re price shopping (only comparing on price)
  • It may not mean they can’t afford your prices

Don’t judge a book by its cover

If you treat them as if they can’t afford you, or that they’re looking for your lowest price, you’re likely to lose some legitimate prospects. How many sales have you made, for more than your lowest package/offering, to people who first asked about price? The answer is probably: a lot. We all have. Everyone needs to know the price, eventually. Some just don’t know what else to ask, so they start with the one thing they understand… money! So, instead of dreading getting the “How much does it cost…?” question, celebrate it. Relish in the fact that most of your competitors aren’t getting asked that, or anything, by this same customer. They’re not in the game, because they don’t know there’s a game going on. But you do, and you’ve just been told to suit-up, and get in the game.

The change starts with you

They’re not going to change the way they inquire with you. I’ve been in this industry for a long time, and couples have always asked about price, earlier than you, the professionals, want to hear it. I’d rather have that discussion early, than not have a chance at all. Learn how to have the same conversation you’d have in person or on the phone, via email, messenger, LiveChat or text. Whatever the technology, it’s still a real conversation. Don’t avoid their question, you’ll turn them off. Don’t try to change from a digital conversation, to a phone/in-person one, too soon. You’ll turn them off. If you reply to their inquiries about price, and they don’t reply to you, that doesn’t mean they can’t afford you. It could be the way you’re replying. I see it all the time (and it’s the subject of my next book).

The short answer is that if you reply to “How much do you charge?” with “Let’s have a phone call or schedule a meeting”, and then you don’t hear back… stop doing that! I’ve spoken about this on WeddingWire webinars, and written about it in articles, but my favorite way to answer this is to quote them a price range, so they, and you, can see if you should continue the discussion (that is, assuming you don’t have a range on your site and storefront, in which case price shouldn’t be an issue when they reach out).

So, the next time you get an email, or message through WeddingWire, that asks about price, put a smile on your face, because you’re communicating with a BUYER! It’s a mindset change that will serve you well.

WeddingWire Education Guru Alan Berg, CSP has over 20 years experience in wedding related sales and marketing, and is an author, business consultant, a member of the National Speakers Association, and the wedding & event industry’s only Certified Speaking Professional®. Learn more at alanberg.com.

» Set Couples’ Expectations with Interactive Storefront Pricing

This new WeddingWire Storefront feature for venues uses your past client data to create a range of what couples can expect to pay based on event details like guest count and wedding date.

As an added bonus for Premium WeddingWire members, when couples use this feature you’ll receive more information directly in the lead notification – helping you to send a more personalized response and increasing your likelihood of booking.

Watch this quick video to see how it works or log into your WeddingWire account to get started!

» To Discount or Not to Discount?

Photo by Tracy Shoopman Photography

This article was written by WeddingWire Education Guru Alan Berg, CSP.

An often contentious topic among wedding professionals is discounting. Both sides of the debate dig in, deeply, when this question is posed on social media or in forums. Now, as engagement season begins, is the time to dive into this subject, starting with the difference between discounting and negotiating.

Discounting versus negotiating

For me, discounting is fine when it has structure and rules. Meaning everyone who buys the same products or services for equivalent dates will pay the same price and the rules are applied equally to everyone. For instance, if you have three packages and your higher packages, which contain more services, also have the highest discounts, that’s great. If everyone who buys that package pays the same price, then the rules are being applied equally.

On the other hand, negotiating means that two couples who buy the same products or services may pay different prices. Each customer’s ability to negotiate will determine their final price. The challenge with negotiating in today’s digitally connected world is that people can, and will, talk about their discount. If you can’t easily explain to one customer why they paid more than another customer for the same products and services – for instance, an in-season date versus an off-season date – then you’re negotiating, not discounting.

Discounting and negotiating can be part of a pricing strategy, negotiating is just less structured. There are times when I’ll negotiate to get the sale, but it’s the exception, not the rule. I recommend to my consulting clients to offer added value over a discount in price, as it helps to keep integrity in their basic pricing structure. If you’ve ever thrown in an extra product or service to get the sale, you’ve negotiated. Some companies do it on every sale. If you give the same or similar added value services every time, you’re really discounting, not negotiating. If the proportionate value of the added products or services changes with every customer, you’re negotiating.

Which is right for you?

There’s no one answer that’s right for every business. Personally, I prefer discounting over negotiating, as it’s easier to explain to your employees and your customers. I understand that it may not work for all businesses. In my business, as a speaker, sales trainer and consultant, there is no standard price list. Each event and client involves a different set of circumstances (travel, preparation, residual business, etc.). However, when it comes to my physical products (books, CDs, etc.), discounts make sense. For example, when I have a booth at a trade show or event, I’ll have my books and CDs, and usually offer an event discount. Many times I’ll be asked for an even lower price, and I’ll thank them and say that the listed prices are already discounted. Then I’ll ask if they want to pay with cash or credit. Asking for a discount is a buying signal, so always ask them for the sale when they ask for a discount.

Don’t fight the power

One of the keys to having pricing power is when the customer wants you, specifically you, to do their wedding or event. You’re not available anywhere else, at any price. If they don’t perceive any difference between you and another company with a lower price, the lower price will win. If they can tell the difference and want you to be their planner, or caterer, or officiant, they have to pay your price.

Get something of value in return

If you’re going to discount or negotiate, try to get something of value in return. If you only lower your price, you’re giving away profit. The products and services will cost you the same, but you’re getting paid less for them. Whether it’s getting a bigger deposit, being paid in full now, taking away services, or a higher guaranteed minimum guest count, make them a partner. If you’re the only one giving, they’ll keep taking. When they want to stop giving, they’ll stop asking.

They’ll be back

Many customers will shop around and find a lower price, which isn’t hard to do these days. If they do find a lower price and they still come back to you, they’re signaling that they can tell a difference, whether in your products or services or in the way you’ve provided a better customer experience – or both. That’s an indication that you have pricing power.

They may ask you to match the lower price, but you shouldn’t have to in order to get the sale. If they felt the other company would provide just as good products or services and customer experience, they wouldn’t have come back to you. The fact that they’re coming back shows that they like you better. Always thank them for coming back. After all, if price was the most important factor, you’d be out of the running.

Price doesn’t determine outcome

Sure, sometimes the lower price will win. A line I often use is “If price is the most important factor when choosing your (photographer, band, dress, speaker, etc.) then I’m probably not the best choice for your event.” Change the discussion from pricing to outcomes. There are many wedding and event professionals who don’t charge enough, whether by choice or out of fear.

Do I have to offer a discount to get the sale?

Whether you decide to offer a discount or not is a personal decision and part of your personal brand. There are many very successful businesses that offer discounts. Sometimes it’s due to competitive pressures, and sometimes it’s to encourage a higher sale. Packages are a great way to display discounts and encourage a higher average sale.

What’s the right answer for your business?

I’d have to know a lot more details to answer that. But when discounting becomes the reason that couples book you instead of them wanting only you to do their wedding or event, you risk diluting your brand. When they’re choosing you mostly on price, it’s easy for someone else to come along and undercut your price. So, discount or negotiate, it’s up to you – but be careful not to get caught up selling the discount, instead of selling your brand.

alan bergWeddingWire Education Guru Alan Berg, CSP has over 20 years experience in wedding related sales and marketing, and is an author, business consultant, a member of the National Speakers Association, and the wedding & event industry’s only Certified Speaking Professional®. Learn more at alanberg.com.

» Latest Updates to Make Connecting with Clients Easier

We’ve made some exciting updates to your WeddingWire account! To make it easier than ever to share your favorite documents, stay organized, and communicate more quickly, we’ve added a number of WeddingWire Messages enhancements. Plus, Florists and Wedding Planners will notice updated new vendor directory search filters based on pricing information. Learn more about each update below!

Frequently Attached Documents in WeddingWire Messages

Frequently Attached Documents

Do you have a few key documents you typically share with couples who are interested in learning more about your business, such as pricing packages, service details, or a marketing brochure? Now, it’s easier than ever to share these attachments from within your Messages inbox.

How does it work?

The attachments you’ve shared most will be listed as ‘Frequent Attachments’ when you click ‘Attach File’ while you’re composing a message reply.  Simply select one and send it with your message. If you prefer, you can still choose to upload custom attachments from your computer each time, but it’s faster to choose a commonly shared document from this list.

Inbox Search

Inbox Search in WeddingWire Messages

Staying on top of your Messages or finding a specific client’s history can be challenging for busy wedding pros. To help, we’ve added a new search feature to your Messages inbox.

How does it work?

Use the new search box at the top of your Messages inbox within your account to search by key information and instantly find the client details you need. You can search by first name, last name, email address, or even past message content to find what you’re looking for and catch up on your conversation.

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» Why Craigslist is Not Your Competitor

This article was written by WeddingWire Education Guru Alan Berg, CSP. Alan has over 20 years experience in wedding related sales and marketing, and is an author, business consultant, a member of the National Speakers Association, and the wedding & event industry’s only Certified Speaking Professional®. Learn more at alanberg.com.

Just the other day, I heard yet another wedding pro bring up Craigslist, lamenting how easy it is to get into his industry (in this case, be a DJ). The thing is, he’s at the top end of the price spectrum in his market. Why would he think that people charging a fraction of what he’s charging are his competition? It’s an easy trap to fall into. Theoretically, anyone who does what you do is a competitor. In the real world, though, that simply isn’t true.

Why Craigslist is Not Your CompetitorIs there really a difference?
Technically, Rolls Royce competes with Kia, because their products are both capable of transporting people from point A to point B. Of course, we know that isn’t true. While a Kia buyer might dream about one day owning a Rolls Royce, the opposite isn’t so. People buy Rolls Royce cars for reasons beyond basic transportation needs. The same is true when couples are shopping for their DJ, or photographer, or caterer, or dress, or wedding planner; they need what you do. But do they need and want you to do it?

Marketing thought leader Seth Godin suggests that you don’t need everyone to get what you do. You only need a small portion of the total market to really understand the specific value you bring. You can’t get them all, and you probably don’t want them all. That DJ doesn’t want the couple that only has $500 to spend on their wedding entertainment. Sure, they’re entitled to have a fun wedding, with great music – he’s just not their guy. Maybe someone else is; maybe they’ll use an iPhone. Either way, he didn’t lose that gig. It was never his to get.

What about you?
Are you wasting time, energy, and resources worrying about every other company in your market, professional or not? You simply can’t control those variables. The barrier to entry, for most wedding and event businesses, is very low. Many, if not most, don’t require a license or certification. Other than those that require a substantial physical presence (caterer, venue, dress shop, etc.), the monetary investment is very low as well. You don’t need the most expensive camera to take great photos; you need a great wedding photographer behind that camera.

Experience can’t be bought – it has to be earned. That said, experience is not a guarantee of success. Being in business for 10 years doesn’t guarantee that couple a great outcome from you. Have you done 5 weddings each year of those 10 years? Or, have you done 50 weddings each year? Have you updated your technical skills, as well as your business and customer service skills? There are many moving parts when it comes to providing a successful wedding outcome.

Who is your real competition?
If it’s not everyone who does what you do, then who are your real competitors? To figure this out, you have to understand how your target market shops for your product/service. What are the things that they value the most? Their priorities drive their budget, and fear is a major factor when making a big decision. What are they afraid might happen if they make the wrong decision? If they’re afraid that you can’t or won’t deliver the outcome they want, they’ll pay more to someone else for the peace of mind. Those are the times you scratch your head, wondering why they chose a higher-priced supplier, when you felt you could do everything they wanted.

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» Pricing Strategy: Is It Time to Consider a Change?

The following post was written by WeddingWire Education Expert Andy Ebon. Andy is the Founder of Wedding University and The Wedding Marketing Blog, and is an International Public Speaker, Writer and Consultant based in Las Vegas. Andy travels across North America and beyond, presenting to Associations, Wedding Industry Conferences, Regional Gatherings, and Local Meetings.

Frequently, the first question an engaged couple asks a wedding vendor is: “How much does (your service) cost?”

Pricing Strategy: Is It Time to Consider a Change?The question, followed by a brief discussion or debate about what the ‘business down the street’ charges can leave a wedding professional flummoxed. This post will suggest different strategies for explaining value and price, making every effort to stave off a snarky exchange.

Wedding professionals’ frustrations about pricing chatter are rooted in brides and grooms who do not have a thorough understanding or appreciation for the value of your services. This should not be shocking; this condition has become the norm. With the wide range of professionalism, design, style, talent, and experience, it’s no wonder many couples need more guidance.

Setting your pricing structure

The biggest problem I see with most pricing structures is when a business provides a price per hours of service. A wide variety of wedding businesses present pricing within the framework of time in direct service with the client, which can be really detrimental. Time alone does not constitute quality or a good result; as such, linking pricing only to face-to-face service at a wedding and/or reception drastically understates your total service time!

It’s a rare client that actually knows how many hours it takes to prepare custom introductions, track down obscure music, travel to the event, or a host of other event-specific tasks.  Hours of work at a wedding and reception are a specific measure of your effort; however, grossly incomplete. The result is more subjective. Hours of performance do not equal the value of your efforts.

To convey this point, it’s not enough to show video clips of successful events or an entire wedding video to a wedding couple and expect an instant understanding. The degree of difficulty and necessity of special talents, developed over time, are hard to factor into price for the inexperienced. Ask yourself: What is the most misunderstood element of your category of business, or your company, specifically? Do you duck the topic or have you developed away to communicate key sales points?

Explaining the scope of your service

Another key factor in price discussions with your clients is scope. Similar to the issue with setting your price by hours of service, couples don’t understand the differences in the level of service you provide in comparison to your competitors. If you don’t explain situational differences in equipment, lighting, skill level, buttercream icing, menu options for special dietary needs, etc., you are just hoping the prospect figures it out.

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» 3 Ways Displaying Pricing Information Generates More Leads

WedInsights

Statistics from WedInsights Volume 6Couples spend a lot of time researching the perfect wedding vendors and one of the main things they look for before reaching out is the potential price tag – and no, it’s not because they’re price shopping.

44% of wedding professionals say their prices vary per customer, which is why they prefer to have a dialogue or meeting to collect more details before providing a price point. Although couples understand there may be a variance in price, they express frustration when they cannot get a general baseline and are more likely to continue a conversation with a vendor who willingly provides this information as a starting point.

Below we share some of the insights from Volume 6 of the WeddingWire WedInsights Series to find out how displaying pricing information can help your wedding business connect with more qualified couples online.

Stand out as a possible choice

Due to the importance of pricing information, many couples bypass vendors who don’t display pricing information and focus on those that give a price indication up front. In fact, 88% of couples want to see pricing before reaching out to contact a vendor. Couples simply don’t want to waste their time or get excited about a product or service only to discover it’s outside of their budget. Give prospective clients the information they need to send a lead by adding initial pricing information to your website and additional online listings.

Establish trust at the point of inquiry

Couples hate nothing more than to ask “how much” and in return get forced into having a conversation or sales pitch in order to get an answer. As much as we know that wedding professionals prefer to have a conversation to get all the details and provide an accurate price, couples just want to get a baseline. Don’t be afraid to answer the question and then ask to set up time to chat. And remember – despite budgeting and planning, 74% of couples come in over budget. Only 10% of couples report coming in right on budget and 16% under budget, indicating that couples are willing to be flexible, but they need to feel comfortable with your business before they can make adjustments.

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» Does Your Wedding Business Take Credit Cards?

This article was written by WeddingWire Education Guru Alan Berg, CSP. Alan has over 20 years experience in wedding related sales and marketing, and is an author, business consultant, a member of the National Speakers Association, and the wedding & event industry’s only Certified Speaking Professional®. Learn more at alanberg.com.

“Do you take credit cards?” seems to be an unnecessary question, but it’s still a common one on forums and social groups. With the cost of transactions ranging from just over 1% to as high as 4% (or more with additional fees) it’s certainly a subject worth talking about. It’s a cost of doing business, but can you (or should you) try to mitigate that cost?

Common types of credit cardsI think it’s as much a mindset as a real cost. In my article, You can’t save your way to prosperity, I talked about cost-saving strategies and how most are misguided. There’s a limit to how much you can save. You have to have electricity, gas for your truck, supplies, payroll and taxes. No matter how hard you try, you can’t reduce your costs to zero. Are the efforts worth the savings?

Let’s do the math

Recently I was consulting with a wedding professional and he was lamenting how it costs him 4% when he receives funds through his website. If he does $100,000 in collections, that’s costing him $4,000 per year in credit card fees. If he does $200,000 in collections through credit/debit cards, it costs him $8,000 per year. The only way to reduce that to zero is to stop accepting credit cards. These days that’s also likely to limit your sales as some people only want to pay with their credit or debit card. You also get the funds now, as opposed to waiting for a check or cash, as you can accept the cards remotely, but cash would be in person and checks are becoming a much rarer form of commerce for today’s generation of wedding couples.

I asked my client how many of his customers he might have lost if he didn’t take credit cards, and while it’s hard to say, it’s likely he would have lost a few. The most he can save is $4,000 or $8,000, depending upon his collections. It’s very likely that the lost sales would have cost him more than the credit card fees are costing.

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» 4 Ways to Approach Your Pricing Strategy

Pro to Pro Insights

Brian Lawrence, Sell the BrideThis 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.

Deciding how to price your servicesPricing 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.

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» The Paradox of Choice: When More Isn’t Better

This article was written by WeddingWire Education Guru Alan Berg, CSP. Alan has over 20 years experience in wedding related sales and marketing, and is an author, business consultant, a member of the National Speakers Association, and the wedding & event industry’s only Certified Speaking Professional®. Learn more at alanberg.com.

In my 2014 webinar on pricing, I talk about having better packages and pricing information. I suggest having three packages, where the middle package is the one that you want/expect most customers to buy. I want to delve a little deeper into why this may work for you.

Decision makingIn his book The Paradox of Choice – Why More Is Less, psychologist Barry Schwartz suggests that “eliminating consumer choices can greatly reduce anxiety for shoppers.” Today’s couples have grown up in a world of seemingly limitless choices. But more choices aren’t always better. More choices don’t make choosing easier; in fact, too many choices makes choosing harder. When presented with so many choices, how do you choose?

Give them better choices
It’s your job as the expert in your field to help guide your customers to the right choice. Giving them a very long list of options is only going to delay them from making a choice. It’s also making selling harder for you. It’s simply harder to sell and harder to buy when there are more choices. If you often have customers say “You’ve given us so much to think about we need to go home and process it,” you may be overwhelming them with choices. In addition to presenting them with choices, it’s also your job to eliminate the options that won’t work for the customer and remove them from their view, literally and figuratively.

Imagine you only have one thing to sell – then it’s simply a yes or no decision. Add another choice and it’s either Option A or Option B. But when you add a third choice something magical happens: Option B becomes the easier choice. Adding more choices muddies the middle, and the clear/easy choice isn’t as apparent.

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