There are many reasons why we as wedding professionals may decide to price our services lower than we would like to - maybe it's because we are new to the industry and cutting your prices may make you seem like an attractive solution to those looking to book your services, perhaps you feel that lower pricing is going to mean a higher cut of the market - or perhaps it's confidence in your own sales strategies and actually converting an enquiry into a sale and you feel that it will be somehow easier to convert a sale at the lower end of the market.
Here are a few reasons why low prices don't work for wedding suppliers and vendors.
Low pricing equals to low value in your potential clients mind. When you go shopping yourself, if you compare 2 different products and all of the features of each are exactly the same, how do you make the decision as to which one to buy? As an automatic, most shoppers will use price as the deciding factor as to which one to commit.
When I was shopping for a new sofa, I new what I wanted in terms of features.
It needed to be hardwearing - part sofa, part trampoline with 2 children. It also needed to be comfortable for the endless Netflix and film night sessions that are part of our family life. I wanted it to be stylish and fit into our modern home. When shopping I found a couple that fit all my requirements perfectly. And then it came down to decision time. One was naturally cheaper than the other, but I didn't want a cheap sofa. And I started to question why one sofa was so much cheaper if had all of the same features as the other sofa. Now had this been a different product I may not have thought twice about buying cheaper. But, because I knew that I wanted this sofa around for a long time, and that I wanted it to look good, be hardwearing and durable, and not fall apart after a couple of years.The value I placed on it's quality was what was truly important to me in this decision not the low value.
Pricing your wedding services are the same. While some clients will shop around based completely on price, not all clients will. Clients who value having the wedding day they dreamed of planned perfectly without any issues will often look at the perceived value if your services are priced too low. In their minds they will ask questions such as 'Why is he/she priced so cheaply?' 'Are they cheaper because they are less experienced?' 'Will this mean they won’t do a good job at my wedding?' And those sorts of doubts don't lead to bookings.
Lowering your prices also increases competition. Lots of businesses compete on price. And so by competing on price you are placing yourself in exactly the same place as all of the others......here's why......still with me....good!
When you compete on price for your wedding business there's a lot of others all going after the same couple. Then there's a lot of messaging, advertising and bombarding.....trying to 'win' that booking. The further you move away from your competition whether that's on price or by differentiating your services, the further you move away from all of that competing, Suddenly, there's less competition around. Clients that do come your way are more likely to be wanting whatever it is you offer and you are more likely to convert that client into a sale because there's less competition in your field.
and the third way in which lowering prices affects your business is that it attracts bargain buyers and discount shoppers. And as much as it pains me to say this....... as I love a bargain as much as the next person......but if you got booked because you lowered your prices - you have to think about whether this person is your ideal client.
When you lure clients in with discounts, it gives the impression that your service, which for most of us in the industry is your time and creativity is also up for negotiation. And once you’ve put that out there the expectation will be that you should be willing to discount on other areas as well. I say this from a hell of a lot of personal experience, clients who are willing to compromise the quality of their wedding to save a few pounds will not see the value of what you do.
They will also be the clients who continuously expect discounts through your entire process. And why shouldn’t they? If it was that easy for you to all those pounds from the price of your services, this probably indicated to them that it was priced too high, to begin with.
Instead of lowering your prices, work with your customer to see what they are comfortable paying financially. Then think about how you can work within that budget. Or look at what services you might be able to add as an “upgrade". This can be used for example as a reward for booking, rather than lowering the price of your services or packages.
Pricing services can be a complicated matter for wedding professionals but it doesn't have to be. You should price for profit. And if you don't price for profit. You don't have a business.
If you need help differentiating yourself in a crowded market, feel that you aren't explaining your value in a way that your customer understands or need help pricing your services just get in touch we are here to help. You can also Check out our hub of resources and downloadables tailored for your wedding business here
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