Why Do I Keep Getting Low Budget Brides? Part 4
Last week and this week, we are discussing what to do when you are priced in the middle to high-end of your trade but keep attracting low budget brides. If you are just catching up, you’ll want to revisit our posts from last week:
- Where is the client getting their information?
- What does your branding say about your business?
- Where are you advertising?
I want to clarify: there is nothing WRONG with doing business in the low-end market. If this is truly your target market and you are attracting this market, then keep on it. You are matching your product/service with your ideal bride and you are doing the RIGHT thing. There is opportunity for success in this market and some people do it VERY well. Dana LaRue from Broke Ass Bride comes to mind, as does Khris Cochran of DIY Bride.
However, I have one note of caution if your products or services are in the low-end of the pricing spectrum: ensure that you are truly targeting this market with the intention to offer something unique and individual and not because you are wanting to compete on price. This not only results in an under-cutting of the competition but also may be pushing you towards an unsustainable and unprofitable business model.
These posts are for anyone not meeting their client match. We are only using the low budget vs high budget mismatch as an example because it is one that I so commonly hear from wedding pros.
And, so we continue today with our series to our fourth question…
What is your pricing history?
If you’ve bounced around in your pricing strategy, the market may not know what to make of you or your business. You have not been clear in who your market is. One year it’s the low-end market and the next year it’s the high-end market. Cats and dogs living together! Mass hysteria! Here’s an example that may help you relate to this confusion:
A photographer new to the industry may decide that he wants to gain experience before assigning a premium price on his services. So he starts his business with low pricing thinking that he can increase pricing over time as his experience grows. He launches his business and lands a bride who refers his services to all of her girlfriends. What he doesn’t realize is that this bride is telling her girlfriends, “Hey you have to call my photographer. He gave me such a great deal on my wedding photographer!” What the photographer doesn’t realize is that he has been branded as the “low-priced photographer”. In year 2, when he raises his pricing to what is more fair for his region and the services he offers, all of his inquiries experience sticker shock. They had heard something quite different from their friend. They think, “Who does he think he is?!”
This is a common mistake when we first launch. We make this mistake based in not having confidence in our skills, not feeling that we possess the experience yet to justify a hefty pricetag, and not knowing what our field charges in our region for comparable services. (My advice: always start out at least 20% higher than your initial gut feeling. And, if you must start with low pricing make sure you’ve communicated “special introductory pricing for the first 5 clients who book our services”.)
The same mistake is made when we offer discounts for products or services. Word gets out and people come to expect discounts from your business. My advice: don’t ever discount services. While negotiating, it’s better to give “an extra service” than to discount the value of what you do.
How to rectify your pricing mistakes…
If you’ve made the mistake of pricing too low or offering discounts, you are not alone. This is not a permanent mistake and you can rectify this. However, it may take a little time for consumers to adjust. If you have been priced too low and you want to correct it, do it NOW. If you have starting rates on your website, beef them up. And, make sure to put an effective date so that people understand that these prices do fluctuate. (“Pricing effective thru December 31, 2011.”)
I want to warn you…
People who referred you in the past will continue to refer you based on the old pricing and this wave of inquiries will continue to have people thinking that you are a low-end vendor. You will most likely have a season or two of inquiries resulting from this in which you’ll need to educate people on your new pricing. If anyone says, “But you offered my friend Sarah a $500 day-of wedding planning services!” it is OK to reply, “Yes, I did. In the last year I’ve made significant growth in my expertise. I’ve taken time to expand my experience and education by doing X, Y, Z. The pricing given to Sarah was introductory.” They won’t be happy with this answer, but it’s an appropriate and fair answer.
Anyone who has been shopping your services or considering your services may not be happy with the pricing changes. In fact, they may not email you for a consult. And, you may never get their business. You may, in general, see less inquiries and referrals. THIS IS OK. If the majority of referrals you currently get are for the WRONG customer (not your target market) then why would you want to continue in this way? However, be prepared for this change in your traffic.
Once you have retrained the market and re-considered your branding in how it relates to your new pricing, you’ll be making a match with your target market. And, you’ll be finding brides who can afford your services and value what you do.
We have 6 parts in this series, you can find all the posts here:
- Where is the client getting their information?
- What does your branding say about your business?
- Where are you advertising?
- What is your pricing history?
- Who is your referral network?
- What is your sales approach?