WeddingIQ invited me to share what big mistakes I see wedding professionals make. Here’s a snippet:
1.) Your prices are TOO low.
If a wedding business isn’t earning enough it’s usually because their services are priced too low. 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 some clients on the books. But, every little bump you can make to your pricing can go a long way. Even a small boost of 10% on your pricing can lead to big results. When I test things financially – it’s always pricing that is the culprit for a business’s small profits.
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.)
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I was invited to talk with Fiorella Neira, the host of Planner in Training Podcast, on what wedding professionals need to know to be more financially successful. We had an awesome conversation about where wedding pros are leaving money on the table, and what people should be doing each month to earn more. You can listen to the whole thing here.
The events industry can be a financial roller coaster. One month you are rolling in dough, and the next month you’re poor as a pauper. The National Association for Catering & Events (NACE) invited me to share my thoughts on what event professionals should do when they have cash in the bank.
Here’s a snippet of the article:
The event business has its ups and down. Where finances are concerned, it’s not unusual that we deal with cycles of feast versus famine. Wouldn’t it be nice to be living in the FEAST MODE permanently?
Here are three things you should do when you’re flush with cash.
Save for your slow season.
When setting a goal for saving money, I like to look at slow business cycles. For example, in Chicago, catering and event businesses tend to have cash slowness from January through March. That’s no surprise. Everything slows down during polar vortex season.
In this example, the Chicago business with a monthly expense budget of $10k, would want to save $30k to cover that worst-case-scenario slow window of time.
And, depending on the business’s level of comfort, they may want to tack on more for economic implosion, alien invasion, big and small emergencies, or maybe a 6-month sabbatical.
Question: What is the dollar value that would make you feel comfortable and secure in your business?
Read the rest of the article here on cash flow planning for event businesses.