This is such a big topic in the wedding industry. How do you price your wedding services so that you earn what you deserve AND still remain competitive? What price will a bride be most receptive to? These are just a few of the questions that you have to think about. Here is how I like to break pricing down in order to make smart, strategic decisions while earning the highest profit…
1. First, determine your cost for each service that you provide. It sounds obvious but this is your starting point for determining your price.
2. Determine if your service is unique or rare?
•If it is unique, you can charge a premium. Brides are less sensitive to a higher price if it signals better or distinct quality. The trick here is to make sure that you effectively communicate why and how your service is unique. It is a good idea to collect customer testimonials to help demonstrate your distinguished service.
•If it is NOT unique, you’ll have to do some homework. Find out what your competitors are charging? Brides have access to a ton of information and will likely choose the cheaper option for a wedding service that is not unique. You’ll need to make sure that you are within that competitive range.
3. Provide three price packages. For the most part, people tend to avoid decisions that have extremes in them. For example, offering two prices (one low and one high price) forces a person to pick one way or the other. Instead, most people are more comfortable with three options where they can feel like they have more control over their decision.
4. Copy what the movie theaters are doing. We’ve all been to the movies and have had to decide on a Small, Medium, and Large soft drink. When you see…
Small, 12oz, $1.10
Medium, 16oz, $1.20
Large, 20oz, $1.30
…you are more likely to go for the Large because it is such a better deal over the Small and even the Medium. With this strategy, the movie-goer received 30% more soda and only paid slightly more than if he chose the Small or Medium. The same goes for wedding services. The key here is to 1) ensure that the most expensive package offers an obviously better value and 2) ensure that your package prices are close together. Then, brides will be more inclined to choose your largest package.
5. Show the lowest price first. People anchor their decision based on the first value that they see.
6. Add a sense of urgency. Brides are more inclined to choose services that include words like – limited time only or must book before X/XX.
What other pricing strategies have you used to maximize your revenue?
About This Blog: Christine Dyer has an MBA in marketing and shares over ten years of marketing expertise with the wedding community. In this weekly blog called Supercharge Your Wedding Business, you'll find advice on an array of wedding business topics such as how to market to brides, social networking, wedding PR, wedding sales, vendor networking, branding, pricing and much more. .Please pass this news along to your own professional wedding network. To receive this advice in your email inbox each week, Sign Up for a Free BridalTweet Membership.
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