During my reception venue days, I used to love when a bride called and her very first question (often interrupting me) was,"How much do you cost?"
When I first started out, I would answer this in a roundabout way, asking questions about the bride's needs and going on (and on) about what we could offer, before actually giving a price.
Well, I learned quickly that this was not the way to go. I then shifted gears and simply said "$15,000," accept the imminent hasty good-bye and move along with my day.
Now that price tag was by far, the most expensive way to rent my venue by frankly, they didn't see value in what I was doing and I wasn't going to waste my time explaining it. Yes, it's important to get the sale, but it's equally important to work efficiently and qualify clients as quickly as possible so that you may spend your time with prospects who may actually hire you.
Pricing can be a touchy subject, but alas, I'd like to dive headfirst into it today.
When I think about pricing, I can't help but think about my own shopping habits. After all, I'm not only smack dab in the middle of the bridal demographic, but not too long ago myself, I was booking a reception venue, DJ and cake for my own wedding.
Like most, I lack time. I lack time to do laundry, fight dust bunnies and make home cooked meals every night. Secondly, I'm from a generation of short attention spans. If a web site takes more than 10-15 seconds to load, then it's time to move along.
So it pains me to see wedding vendor web sites that dance around the topic of pricing, as well as vendors who won't give you a clear cut answer when asked the pricing question over the phone.
After all, what is there to hide? Why not be up front with a prospect to save her and yourself time?
Remember- Brides may be discriminatory shoppers but not in the same way as you and I are about our respective crafts. When I worked with a five diamond, five star property, I knew that the majority of brides were not going to see the difference between four or five stars. Since pricing was a factor in their decision making process, I was always quick to give it to them. If we didn't meet their budget, I would happily send them several suggested venues (aka customer service 101).
If I didn't, I knew perfectly well that they would have three of my competitors in their back pocket, of whom, they may have seen very little difference. If they had their pricing and information readily available and I didn't, it was a safe bet that I would be overlooked.
Afraid your competition will catch wind of your pricing structure? Well I've got news for you- if they want it, they're going to find a way to get it, whether you post it or not.
Ultimately, I'm not suggesting that you plaster every single pricing guideline on your web site. Instead, give brides a range so they don't have to go hunting for it. Don't make them call you if you are already out of their budget. After all, you have much better things to do with your time. And so do they.
And here's the thing- if you have taken the time and made the effort to price yourself accordingly, as well as have a great product/service and are showcasing it effectively...
..then what's the big secret?
Until next time,
Meghan
http://www.ofdconsulting.com/
Meghan Ely is the owner of OFD Consulting, a niche marketing group geared towards wedding professionals. She is also the Managing Director of the Richmond Bridal Association, and has a regular spot on Bridesight TV.
Do you think it's better to post a range of prices on your website if you don't have set prices? Everything that I do is custom, so I can't just say "a cake for 100 people costs X." It depends on what they want on the outside of the cake, so it can be very different from one person to another!
ReplyDeleteI agree to some extent with your concept of pricing, if it is a commodity that you are dealing with. But some things for a wedding are very talent driven, myself as an entertainer, DJ, Master of Ceremonies, game master and wedding director (Not just the music), Photographers and Videoographers are also very talent driven. If you are talking about renting linens, or tables or a limo, price is important, because they are commodities. But my price is vastly different from an unqualifed hobby DJ.
ReplyDeleteKara- I definitely think posting a range is a great idea- especially versus the alternative of not pricing out anything at all. Every cake is going to be wildly different- size, style, etc. A range is a great starting point so brides know that, at the very least, you fit into their budget.
ReplyDeleteAlan- very valid point! There is a big difference between service and product and I'm sure on different levels, a limo driver may argue that their service level is different than another company, even if driving similar vehicles.
In your case, I would think a starting point, range or even the willingness to just share pricing out right on the phone (versus holding out until an actual meeting) would make more sense. Feel free to enlighten me though- I am by no means a DJ!
I think my tsk tsk tends to be geared towards those who are so protective of their pricing, that they simply make you wait until you are in front of them to discuss it. I just don't see Generation Y buying it, as a majority.
Thank you to you both for taking the time to post!I value your opinions!
Ha, I'm not generation Y (maybe I'm a LITTLE older) but I agree with the mystery pricing. It serves no purpose but to waste someone's time if you refuse to give them any direction at all on what your prices are like. If I call someone and ask a general range for something I know it's only an estimate, but if they won't give me any information I just move on. NEXT!
ReplyDeleteI appreciate the comment- I'm the same exact way and according to my research, we're not alone in that thinking!
ReplyDeleteI often find that it is best to show a starting price, the interest is generally sparked and enquiries tend to follow.
ReplyDeleteI so appreciate this conversation about pricing, which is a complex and emotional matter for the bride and the wedding professional as well. I see three areas that cause issues, and frankly, cost professionals money when pricing:
ReplyDelete1) Not knowing your own numbers- Most folks start their wedding biz because they love the artistic side, not because they want to run a business, right? It's easier to do a 'paper napkin' calculation based on simple costs and what you want to make then decide on a price. Trouble is, that only works for so long before the biz is struggling, or worst, losing money. Ask yourself this: do I know which products/services actually make profit (which is entirely different) and why? You have to know your own numbers- ROI, COGS, etc- to run a profitable, sustainable business.
2) Not finding and learning the necessary business tools and professionals. Wedding pros stay up with industry trends but often aren't up on the latest business strategies and tools. There are two great books- the Art of Pricing and Found Money- that every small biz owner should read (twice!) if you want your business to support you and provide the lifestyle you work so hard for. Just being aware of different pricing strategies could be a boon for your business.
3) Not recognizing the emotional component that's part of pricing. We're caring human beings who offer our brains, spirit and imagination to help others. Sometimes we are the product. And, that can create all kinds of tensions and blindspots around pricing that most people want to avoid. Unfortunately, that's not good for business (0r you). Until you can get clear on what your value is, setting a price will always be a tough issue.
After being a small business owner who struggled with these issues(and still do) I feel pretty strongly about being educated. I'm developing a series of teleseminars on pricing for wedding folks to start in April. I'd welcome any thoughts or comments for making it really useful.
Thanks, Meaghan, for starting another great conversation
Dina Eisenberg
PositivelyWed.com
Dina and Ian- thank you both for chiming in!
ReplyDeleteI actually have the art of pricing on my night stand. :)
All wonderful points. I look forward to more open dialogue down the road!
Great post, definitely an important part of a business presentation is prospects access to information. We have a specific page on our blog geared towards our pricing which displays a starting point for photography coverage and a starting point for full collection pricing, with an available download PDF, which is the complete guide.
ReplyDeleteeven with that we still get emails asking for pricing :)
I'm totally with Alan on this one.
ReplyDeleteI offer prospective clients a base price for the levels of service I offer, but it would be impossible for me to throw out a number that will fit every bride because every bride and every event is different.
I develop pricing based on many variables (the creative scope of the project, the hours required for logistics planning and execution, the venue, time of year, number on her guest list, etc.).
Courtney- thank you for your thoughtful post! Ultimately, everyone is a bit different and it sounds like you have a nice plan on action to be able to customize yet offer initial info.
ReplyDelete