When you run a wedding business, there are a lot of things you need to evaluate every year. Is your process working as well as it can be? Is there a way you can help your team members grow? But, out of everything you might need to take a good hard look at, your pricing is one of the most important! That’s because as much as your passion for weddings is what keeps your business running, your pricing strategy is what keeps your doors open. So today, we wanted to share four reasons you should raise your prices every year—the fifth is simply because you’re worth it!
Reason 1: You’re that much more experienced
One of the factors you should be using to price your services is your level of experience. And, this one is pretty simple—if you become more and more experienced after every year, your prices should get higher and higher. This raise doesn’t need to be astronomical (a few percentage points will do) but even a small price increase can have a major impact on your confidence as well as your business.
Pro-tip: Many pros launch their businesses below market rates. If this is you, we strongly encourage you to stop undercharging and raise your rates to match the market.
Reason 2: The cost of doing business increases every year
What it costs you to operate your business does, in fact, go up every year. Things like inflation (1%), rent increases (up to 3%), cost of living pay increases for your staff, and your cost of insurance are all financial obligations you have as a business owner and they are all things that should be considered when reviewing your pricing strategy. And, if the thought of increasing your prices scares you a bit (even after looking at some of these numbers), our friend and WeddingPro 2020 Educator, Kinsey, has some great advice to help you feel confident about doing it:
I think some pros look at increasing prices as some sort of special skill that only a select few people possess or you have to reach a certain level in your business before doing so—and nothing could be further from the truth! It’s actually, in my mind, a simple habit that you can (and should) implement into your yearly business routine. One of the ways I help people get around the mindset issue and fear of increasing their prices is by simply making them change their frame of reference. So, all you need to remind yourself is that there is an increase in the cost of doing business and the cost of goods and services every single year. It is how the free market works! And, when you break it down to that basic fact, most people have no problem raising their rates to make sure they aren’t losing money. – Kinsey Roberts of She Creates Business and Vista View Events
Reason 3: One of your goals is to make more but have fewer events on your calendar
Raise your hand if this is one of your long term goals! If it is, raising your rates on an annual basis is how you are going to make it happen. Because, the most successful wedding pros will tell you that getting to the point where you are booking just five clients a year and making six-figures takes time. (Read: a lot of time and really hard work!) And, the best way to make sure you are getting closer to reaching that career goal every year, is to make a smaller bump in your prices every year—one that intentionally helps you get to the point where you can take on fewer clients without making less.
Pro-tip: Have an idea of what you want to be making in the next few years? Take that number, subtract what you are making now, and divide by the number of years you are giving yourself to get there. You’ll end up knowing exactly how much more you need to make each year. You can even go a step further to divide that number by how many events you anticipate booking each year to know how much more you need to charge per event.
Reason 4: It’s how you give yourself a raise!
Lastly (and certainly most importantly), when you are your own boss, it is up to you to give yourself a raise! And, since most pros will only get around to reviewing their prices once a year, making sure you do has an impact on your financial well-being until the next time you do.
You don’t get a date back. When it’s booked, it’s booked. What you sell it for now is what you make next year. If you wait too long to raise rates, then you’ll leave money on the table with no chance to make more until the next year. Don’t wait to increase prices until it’s too late. — WeddingPro 2020 Educator Sam Jacobson of Ideaction Consulting
You have all the reasons you need to know you should give yourself a raise—now it’s time to do it! Be sure to sit down and review the number behind your business and make the adjustments you need to continue building a thriving business for yourself and future.
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