What I Wish I knew about Pricing

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Permalink Reply by Mandy Harris on May 2, 2010 at 10:35pm

I am new to the industry, and my biggestfear is having other vendors think I am "undercutting" their prices to get the jobs. I do not want to start off on the wrong foot with my fellow local vendors, but do not feel I can charge the same price as coordinators that have years of experiance where I have 2 weddings under my belt only! What is the best way to approach my pricing in this situation?

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Permalink Reply by Dina Eisenberg on May 2, 2010 at 11:03pm

Hey Mandy, that's a great question, maybe even the $64k question. Here's what worked for me when I was starting out consulting.

While I didn't have the years of experience in banking like my corporate clients and their usual consultants, I did have something to offer. I was brand-new and had none of the preconceptions about the industry. That mean I could be an invaluable source of feedback and new ideas. I reframed my inexperience in subject matter as a benefit. I wasn't stuck in old thinking.

I'm sure if you take the time to think, and ask others who know you, you also have a unique perspective, interest, passion to bring to your clients. And, that difference is what allows you to be on par with others. Head to head on experience, they can claim more, but no one has the lock on great ideas executed well.

Hope that helps. And, hey, feel free to join my fan page

Warmly,

Dina

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Permalink Reply by Ebony Sparkes on May 3, 2010 at 11:12pm

I think that because I was such a DIY bride (because I have the skill, knowledge, and resources) for my own wedding, that I sometimes feel guilty about my price point. However, after doing my research I definitely feel that I'm right where I need to be right now. I just know that my target bride is not the DIY but the busy and affluent bride.

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Permalink Reply by So Many Moments on May 4, 2010 at 2:29am

Even when people are starting out, flooding the industry with free/cheap work is not helping ANYONE. As a photographer, I see people on craigslist constantly offering to shoot weddings for peanuts to "enhance their portfolios". But, what is your portfolio worth if you don't CHARGE? It's creating a new average price for wedding services, and I believe they are far lower then they should be.

As for boundaries, contracts contracts contracts! Set your limits in B&W and everyone sign on the dotted line! :)

http://www.SoManyMoments.com

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Permalink Reply by Dina Eisenberg on May 4, 2010 at 5:31pm

Thanks for answering. You know, you make me thing there's a role that experienced wedding folks can play in schooling 'newbies' so that they can charge comparable rates.

It strikes me as such a paradox that veterans don't want new folks deflating the value of the services but then don't want to mentor so the quality of work (and billable rate) can be higher for everyone.

A high tide raises all ships...or so the saying goes.

Warmly,
Dina

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Permalink Reply by Mandy Harris on May 6, 2010 at 7:23pm

Dina I must agree with you. I have found alot of blogs/conversations on the "nebies" and undercutting prices, however I have asked a few planners if they would be willing to go over their prices and packages with me, and none of them will- how am I suppose to know what the average rate is if no one will tell me?
I set my prices on packages this week- please let me know what you think- honestly but politely please!

My day of package will be $500
My week of package will be $750.00
My full service package starts at $2000 plus a 7% fee of any vendors/services that I secure.

Please let me know where this puts me as far as average prices.
Thanks

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Permalink Reply by Lasso'd Moon on May 10, 2010 at 9:00am

What exactly does your full service package entail if securing vendors is a separate charge? I would assumne that full planning is exactly that plus all of the other goodies that full planning entails (budgeting, setting up meetings, etc, etc).
I think you might want to look at other planners sites (not necessarily those in your area) and see what their packages include. It's hard to say if your pricing is good or not because we don't know what's included in those packages.
If you're not already a member, www.i-wed.org is a great resource for planners.

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Permalink Reply by Glen Shevlin on May 11, 2010 at 9:56am

You are expecting a little much if you want your competition to help you cut down their potential customer pool. I am not saying that you are doing things wrong here but you need to research through other means. Bridal forums can help BUT keep in mind that bridal forums can be a race to the bottom bitch session.

THe best system is to determine what you need to charge to provide for yourself. Work outyour bills expenses everything and then figure out how many hours that you are working ie., a typical client requires X number of hours of work. Some long division gives you an amount per hour.

What others charge is not really relevant beyond the fact that you may want to enuthat your price is not either very low or very high you are to low you have a very tough decision ..... how much to increase your rates to get to the median. If you are to high you have a self correcting situation you will likely not be getting much work . Some established planners are in the position of being able to price their reputation into the equation until you are in that position try to establish a nice median point that provides you with a good living.

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Permalink Reply by Mandy Harris on May 11, 2010 at 10:43am

I understand that asking local vendors to help me with pricing is potentially cutting their client pool, but with the location I am in, asking anyone outside of my area would not be "comparable" so to speak for me. so that is my dilemma.....

My full service package includes all the booking of vendors, budgeting, timelines, etc that you would EXPECT for a full service planning package, the 7% charge is to cover our mileage expenses for traveling to meet vendors and securing them. this is why I am asking these questions, because I really have no clue- is the set price and then the percentage not a norm for planners? I have not set anything in stone, and am looking for assistance- I would be willing to email my package info to someone if they would be willing to give me some honest helful feedback on it......

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Permalink Reply by Glen Shevlin on May 11, 2010 at 11:41am

Good day, having read your reply, I think part of the problem is inexperience. This board or one of the other ones that have a vendors forum can help with trade specific pricing. The issue is are you charging enough ? This again comes down to can you make enough income at the rates you are charging? That is somethin that you need to determine for your self. You have to determine what your bottom line is for your situation. If you arew charging the going rate for your location and you are still not making enough to get by you need to redo your business plan. ( you do have a business plan) .

As far as determining what your competitors are chargeing check websites , some people post these things. Try to set up information sharing with others that you deal with. Ask your florist what others are charging as an example. Keep in mind that these requests will likly get back to your competion , gossip is the only comunications system that travels faster than light. after all. Some people call and pretend to be brides looking for a quote, It can be done it depends on you.

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Permalink Reply by Dina Eisenberg on May 11, 2010 at 12:43pm

You know Glen you make a good point about creating a biz plan, but I think that's the problem. Often I hear that advice without any clear directions on the step-by-step approach you need to determine selling price, break even, profitability. That's why I'm so delighted with the work that Michelle Loretta is doing at Sage Wedding Pros. She actually explains it all and have a live event to encourage it.

Calling under false pretenses is probably not going to make a newbie very welcome in her local community since relationships are built on trust. And, you're right that some people list their prices on site, but then I wonder if those the are prices they are getting or the prices they want to get.

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Permalink Reply by Glen Shevlin on May 11, 2010 at 2:18pm

I agree and I did point out that "some people" do it , I should have perhaps been a little clearer on the desirability of doing that. It does work but the down side is moderatly huge. Something as simple as call display can get you in trouble.

The fact that a lot of small businesses fail ( 50-75%) in Canada is directly atributable to poor planning as in no planning. A business plan is a guide and if you create and follow it you are much further ahead than somebody working off the front seat of their truck

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