cheaper than cheaper

We’re all sick and tired of being under-priced by Craigslist competitors who wouldn’t know the value of professional service if it bit them in the arse.

But there is a dangerous side to discounting.  And the truth is that most wedding professionals don’t know what they really need to make just to break even.

This blog post from the Indie Business Blog reveals the shocking truth about the wildly popular Groupon discounting service.  You can read the whole article here: Value Always Wins

Discounting is NOT profitable for most small businesses.

A small wedding business can’t make sales up in bulk like the big guys can, and very few discount purchasers return to buy at full price.

Sometimes it can make sense to offer a discount, but be very careful.  You’ve got to understand the lifetime value of your customer, the total revenue your average customer brings in throughout your entire relationship.  Only if the lifetime value is much greater than your loss does it make sense to slash your prices.

As this article points out, it’s VALUE the bride wants, not simply the lowest price.

What do you think about discounted wedding prices?

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Stephanie Padovani

Stephanie is a Hudson Valley wedding insider, blogger, writer, and wedding business coach. Want to book more weddings at higher prices? Quit dealing with price shoppers? Transform your wedding business so that it supports the life you really want? Look her up! They don't call her the Wedding Business Cheerleader for nothing. :)

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0 thoughts on “The Price Slashing Competition vs. the Higher Priced Wedding Professional”

  1. Anonymous says:

    One way I look at this… the low $ lawyers chase after clients whereas the high dollar lawyers have clients chasing after them. Now just put into practice for us wedding professionals.

  2. Anonymous says:

    Also think of this for those who do more than just weddings. If you do Schools, Bars and other more public performances and get in to the habit of offering an “introductory” discount, the word will spread among the schools or bars that your price is less than your competitor. You have now set a standard not only for your business, which you probably won’t appreciate, but now your competition is really going to dislike you because businesses and schools will want them to match your price. Your competition can be one of your assets if you take the time to get to know them. I regularly refer people to other DJs for dates I am booked and I get referrals in return, the client gets a quality DJ, the DJs get the work and everyone is happy. The bride you sent off to a competitor will remember you for your help and will tell her friends who to call and your name will be one of them.

    Even if you did not intentionally low ball the competition and were just looking for that foot in the door to compete, once you set the bar and accept that gig at a lower cost they are not likely to accept your ‘new’ regular price the next time they want to book so you will either lose the contract or need to maintain the low price structure which could bleed into the wedding market as brides who see you at other events enquire about your prices.

    Don’t set the bar too low. Be consistent with your pricing and have integrity. Don’t price based on what you think you can get from the client, it can bite you back if they ever meet, or if one was a referral but didn’t tell you and two brides get two very different prices for a similar event, you could risk losing more business and money that way.

    1. This is excellent advice, TJ!

      The more we focus on price, the more our potential customer focuses on price.

      Discounting attracts discount customers.

      Instead, if we focus on VALUE, delivering it and communicating it, we’ll attract clients who are attracted to [i]that[/i].

      Easy to say, not quite as easy to accomplish, but there are specific things you can do and say to get there.

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