November 19, 2020
Wedding Planner / Designer File - How to set your prices.
Pricing is a huge component to a successful Wedding planning company. Your pricing (matched with your work/qualifications) will attract certain clientele and be the deciding factor of a contract getting signed or turned down. And with the internet and social platforms being a quick way for customers to compare pricing with your competitors, planners now more than ever need to be able to price appropriately.
So how do you set your prices?
This is a big question that many of our Wedding Planner/ Designer students ask us during their training. For each estimate made, the same question arises… How to define it and on what criteria? This step, in our versatile profession is crucial for the future of the company because if we as service providers “low-ball” our time and services, it can lead any company to experience what may seem as “good” influx of work. It will require the same if not more effort (this is your company reputation after all) and MORE stress that in the end doesn’t pay out. This can lead the company to shut its doors due to lack of profit. Which often happens within the first year or so. Same goes for pricing too high as it can scare off customers as soon as the proposal is sent.
So here are some tips for providing the right services at the right price:
Measuring against the competition and the demands of the bride and groom
When you first open your doors as a Wedding Planning / Designing agency it is difficult to measure the work that will be put into each event as not everything is done at once and in increments over a period of time. In your first year you spend a lot of time in the research phase of each project than say that of a planner who is more established and knows exactly what they’ll need and which vendors to use. So measuring your time spent is extremely important which new planners often forget. Its also important to know that your prices should be slightly lower than those charged by your experienced competitors because of inexperience and ability to show an extensive work portfolio. Morality: this is the golden rule which you should go by in the beginning. You have to be prepared to make sacrifices in terms of price to ensure its success.
In addition, quoting the same price for every client is impractical because every client is different and has different wishes and demands for their special day. What’s more, is their different budgets as well. Therefore, our role is to adapt our proposal according to their criteria if we want a chance at a signed contract. It is obvious that a couple who wants organization from A to Z for their wedding with an arrival by classic vintage car and a fireworks display will not have the same estimate as the couple who will arrive in their own vehicle and use sparklers as a way to end the evening.
In terms of services. The quote will have to be tailor-made and personalized for each service offered to the couple.
In most cases, Wedding Planners set up a percentage system based on the total budget allocated to the ceremony, cocktail and reception. It is a quick and simple calculation but it can be restrictive depending on the services sold (inefficient on the decoration service for example) and not very profitable according to the budgets and the services provided.
Another system which may be more suitable, is to set up a price range according to the allocated budgets. If you want to know a little more about this part, we invite you to join one of our upcoming Wedding Expert seminars where we discuss in detail and provide you with package templates and more!
In the meantime, here are all the points to consider when determining your selling price.
Define your project / business well:
To determine your selling or service price, you must at all costs even before the opening of your agency, develop your Business plan.
Inside it, you will carry out your marker research which is based on the analysis of supply and demand, upon examining the competition in your area. The market is to be identified based on trends, future prospects and competitors work. This is one of the key steps to be able to position yourself in your industry. Meaning whether you are going to offer DIY, Low budget, average or high-end luxury services. Thus defining your target customers as well as the services you will offer them. Then, you will need to define your business strategy. The development of your marketing plan is a tool that will allow you to be clear and precise about your objectives in terms of communication and as well as the means in how you will implement them. To set your prices, the structure and legal form of your agency as well as its starting capital is also important. A micro-enterprise agency will not be faced with the same rules in terms of tax rate as a company; your ability to assume the financial conditions of your business will not be the same depending on your status.
How to calculate its selling price:
Once your business positioning is clear and precise and you have determined a price range based on your project and your competition, you will need to determine your hourly rate. Evaluating the working time that a service takes comes down to evaluating each stage and each task of the services rendered. Your average time spent on a wedding from A to Z will be multiplied by your basic hourly rate.
The basic hourly rate will be established according to your experience, location and competition. For example according to Wedding Wire the national average hourly rate of a wedding planner is $75 per hour. But for someone just starting out this should look a little different. Either way, your business costs will be defined according to 3 criteria:
-On the purchase of your raw materials as well as your investments in decorative elements and / or rental.
- On your production costs in terms of goods and services, that is to say the number of hours devoted to research, purchases and travel times.
- On your Communication. Depending on your strategy and your marketing plan, the expenses related to the publication of your advertising brochures, to the creation of your website, or even to your presence at wedding shows will be counted and included in your price. final.
To summarize, the principle is to take into consideration all your costs for your purchases, your production and your communication and to apply a price point that will cover them and allow for profit. Please also take into consideration gasoline, your taxes, your management fees, etc. The multiplier will determine your final margin and will be multiplied by your minimum basic hourly rate to obtain your fixed hourly rate.
The psychological price:
If you opt for a strategy of alignment in terms of price with your competition, it will be necessary to analyze your strengths upstream to succeed in differentiating yourself from your competitors. When you make their quote, consider setting a strategic price to motivate the act of signing. Ex: It's always more tempting to ask for $1075 instead of $1100 there is only a $15 difference but in the mind of the consumer the difference is much greater.
Our profession is a great human adventure where psychology and commercial attitude are of paramount importance. The bride and groom will choose the wedding Planner / Designer that suits them best; their choice will be motivated by the personality of the organizer / Decorator and the feeling felt during the first meeting. A relationship of convenience and friendliness is essential for the preparation of the wedding to take place in the best conditions. So your clients will choose you according to your personality, according to your strength of proposal and the professionalism displayed and will be ready to pay dearly, more dearly than your competition for you to accompany them in the event of their life.
If you have a personality that in general attracts the spirits, then you will have no trouble signing your bride and groom even if your prices are higher than your competitors. A high price is also a qualitative sign, you will easily manage to convince and especially reassure your bride and groom. To sum up your prices will depend on your target customers, your competitors, your costs and business expenses but also your personality. We invite you to join our seminars at the Wedding Academy where we explain in more detail this essential decision-making for the image and the very success of your business.
December 12, 2020
December 14, 2020
May 18, 2017
"Wedding Designer Course" will be online by late 2020. All others training are coming soon!
Thank you for your patience and understanding :)
Wedding Academy USA Team