During the wrap-up happy hour at Engage!08 a few weeks ago, I asked celebrity wedding planner Marcy Blum at what point in her career did she stop charging what everyone else said she should be charging, and start charging a fee that made sense and was profitable for her. She told me that the switch for her came at a point in her life, and a few years into her career as a planner, when she could only depend on her own income and not anyone else's.
The reason I asked was because I often hear variations of these arguments offered by wedding consultants on why their prices are set the way they are:
*My company is new, so I can't charge that much yet. (In another post we will tackle the distinction between being a new company and being a new planner.)
*So-and-so has been in business longer, so I can't charge as much as him or her by virtue of a timetable.
*No one in my area charges above $x amount, so I can't raise my prices higher than theirs.
And so on and so forth.
Most of these arguments, however, are based on fear and are not valid reasons for not charging what you are worth.
So my rhetorical question for you is this: are you charging enough to be profitable even if you didn't have another source of supplemental income? If not, why not?
Tuesday, June 17, 2008
Subscribe to:
Post Comments (Atom)
Welcome to 
14 comments:
Great post, Liene. I think many new planners struggle with this. I look forward to reading about the distinction between being a new company and being a new planner.
This is a great post. I am always second guessing my pricing. Is it too much, too little? It can be difficult to find a perfect price. I am also looking forward to the new company vs. new planner discussion. I have been a planner for years, but recently purchased the company I had worked for. Thanks for the great posts.
Thanks so much for this post, Liene..as someone who has planned events for years (both paid and unpaid) but just recently starteed my own business, I constantly struggle with this! I'm looking forward to more posts that address this topic, and the new company vs. new planner issues!
Interesting post, Liene. I recently raised my prices so that I am now charging what I feel I am worth, but I have seen a marked decrease in the business I am booking. I struggle with this one because when I don't book a client, more often than not the reason they give me is that another planner had a better price. This is a tough one...
I’ll reiterate the sentiment: great post. This is a topic that planners, whether new or established, struggle with. As a new business I’ve read the literature available and I’ve sought advice in the community as well regarding pricing. With all these resources, when it came down to pinpointing exact costs for specific services, I was still left with my “gut” instinct as a coordinator on what I should and should not charge. I look forward to reading about your distinction between being a new business and a new planner. I also think an interesting topic is how a price is initially established, whether it is a package, hourly rate, or a percentage of the overall budget. I know that is also a hot button issue in the community.
This post is definitly on point. I know I'm worth more then what I'm charging, but I fear clients won't see my worth without a lower price tag. At some point, I have to correct my thinking, so my pricing reflects my true worth as a planner. Can't wait for the new company vs. new planner too.
I too will be looking for answers to this discussion. New planners often start low to gain exposure and business. Does this pigeon hole you when you are looking to expand into a different niche market?
I'm very much looking forward to the follow-up post on this. The thing I've struggled with the most, was at what point to increase prices and how to sell myself to potential clients that I was worth it.
I to wonder if I over price myself, but I say do what you have to. The clients that you are shooting for WILL find you. Our talents and time is to valueable to give away. I learned that quickly.
I love this site :)
Great post Liene! I am not a wedding planner but as a fairly new business owner, I as well struggle with pricing. I know I have not been charging to be profitable due to other sources of supplemental income. At some point (very soon), I will like to transition to operating my business full time. Looking forward to your future post. Hey Liene, when are you going to post part 3 of enagage 08? Expectantly awaiting your post. I am still kicking my self for not going. I am going to try to attend next year. Thank you so much for this website.
Anon - I'm just waiting to receive a set of pics and then I will post part 3 of the engage!08 recap. I hoped to have it up today, but it should be tomorrow at the latest (fingers crossed).
Great reminder, Liene. Thank you for your encouragement as always....
I'm looking forward to your comparison article. I wonder if pricing struggles has anything to do with being women. There was a study once that women are more giving when it comes to pricing. We are afraid to put what we think we deserve out there for fear of rejection. Reading your article today made me think of that.
Love The Smart Planner!
It is a great topic - we raised our prices steadily over the first four years of our business from disgustingly too low to the highest in my local area. We regularly lose leads because of our pricing - but the clients that we do book are so much better: they respect our time, value our services, and are generally easier to manage with better results. We have seen sluggishness due to the economy, but the clientele is still there. I'm a firm believer in charging what you're worth. Thank you for a great post Liene.
Post a Comment