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?