In last night’s #WedBizHour the subject up for discussion was pricing and consultancy fees. This is one of those topics that is always a hard one not only for those just starting out in the industry, but also for those who are already trading. It such a difficult thing to get right. It is quite common for any new business owner to enter the market with base pricing. Doing it “cheap” to win the job and establish a client base. Presenting yourself as a base price supplier will make it very difficult to move out of that market further down the track.
- If you are looking to brand your business and have a presence in the market as a long term venture, set your prices accordingly and whatever you do, never tell your client that you offer less expensive pricing because you are just starting out. No bride wants to hear that.
- Never drop your prices to win a job and never ever use the word “cheap”.
- Price your labour accordingly and always ensure that your contract allows you the flexibility to move as the job increases. Have a number of varying packages, but ensure that your time is capped within that package. The biggest mistake in business is to under-quote the labour component. There is nothing more disappointing than losing your profit margin because you have miscalculated your time.
- If you are not sure what to charge, don’t compare yourself to the market, get some advice from your accountant.
In the wedding industry it is a known fact that cheaper is not at all better. If you have the knowledge, the training, the marketing and the confidence to sell your services to the wedding market, be very careful not to undersell yourself. Starting out with base pricing will leave you with absolutely nowhere to go. Also, when it comes to pricing your services, don’t be marginally higher than your competitor, be substantially higher. The client will shop around, but she will be curious to know what makes your services so great. Differentiate yourself from your competitors and never be afraid to charge what you feel your skill is worth.
To read our Transcript from last night’s #WedBizHour packed with lots of advice on the subject click here to download.