There are so many factors that go into a small business’s ability to make money. In my years of helping wedding pros with finances, it almost always comes down to pricing. Pricing can make or break you. Those are STRONG sentiments. But – time and time again – I see it unfold that way in our industry.
Pricing (and the related profit margin) are the biggest contributors to financial sustainability in the wedding industry. This can be a challenge to newer wedding businesses who are simply trying to create a portfolio and get some clients on the books. But, even a small boost of 10% on your pricing can lead to big results.
Now, keep in mind: pricing is a marketing decision. Your price needs to match your market strategy (your target market, your niche, your level of service, etc.) Make sure to examine the marketing-price match.
Here is a small project for you to examine and improve your pricing:
- Determine the average price of your last 10 weddings. (Total your sales $ for these events and divide by 10.)
- This is your average booking rate.
- Set a benchmark to boost that average by 10%.
How do you do that? It’s typically a combination of raising your rates slightly, booking the bigger services more often, selling add-ons. Be SUPER FOCUSED on your benchmark. This will boost your sales without necessarily having to make huge shifts in your pricing structure. When you become fixed on improving that average booking rate, is when you start to see more profits from the events you do.
Do you want in our Pricing Class? We only have 6 spots left. Read about it here.