Pricing Sales

Pricing Do’s and Dont’s

By Emilie Smith

Receiving a question about pricing can be daunting and tricky to navigate. On the bright side, receiving a price inquiry is a definite sign of interest, which is always exciting! If they are reaching out, it means they’ve vetted your business and it has made it to the final round, so inquiring is the natural next step for them.

So, now it’s your job to transparently and honestly answer their questions, while also making sure that their key takeaway is that your services are worth the price you’ve set. We’ve pulled together a list of pricing dos and don’ts, including some from industry educator and wedding business consultant Alan Berg, CSP, to help prepare you for how to respond to those often-dreaded pricing questions when they hit your inbox.

If you’re interested in reading through more expert-backed pricing re-evaluation strategies, read A Wedding Pro’s Guide to Navigating Price Re-evaluations!

 

DOs

• Do reply as quickly as possible to an inquiry. If you can catch them by responding quickly, there’s a higher chance of receiving a response and continuing the conversation.
• Do reply on the same platform that they used for their inquiry. 48% of couples are frustrated when vendors don’t reply using the same channel they reached out on. So, start with the channel they initially reached out on and then request moving to another channel of communication later if necessary.
• Do acknowledge a question about price, don’t dodge it. If a couple is asking you about pricing, it’s best to answer their question head-on. Again, you’re in the running to get booked for their wedding, so put your best foot forward to establish that you value open communication.
• Do provide some pricing information on your website or Storefront. Couples are likely to distort their budget or may have a skewed sense of it. Alan says that, for some wedding businesses, it makes sense to have pricing information available on their website and/or Storefront. 88% of couples want to see pricing of some sort before getting in contact with a vendor. That means you could be cut from the shortlist before you even have the chance to talk to them, so don’t hold out.
• Do consider creating different package options. If your business allows for it, it may be worth considering adding a few package options, changing the services included in each. Doing so can help you solve a range of problems your potential clients might be facing when planning their weddings—which positions you as a great pro to work with.
• Do consider re-evaluating your prices consistently. According to Nadia S. Anderson, CPA, CGMA, and CWEP, it’s important to consider re-evaluating your prices at least once a year. Markets, expenses, and goals are always changing, and they impact your pricing. Because of that, it is a good idea to re-evaluate your pricing on a regular basis to make sure it’s the right fit for that particular moment or season.

 

DON’Ts

• Don’t assume that a couple can’t afford you just because they are asking about price! How often do you determine the price of something before buying it? Probably all the time! Because this is a first time shopping experience for most couples, they don’t necessarily know what their needs are, what they are looking for or what other questions to ask, in general. You are their guide, so help them out!
• Don’t lead with your lowest price. Typically, the first number you hear is the number you expect to pay, which ends in an unfair result for everyone. Instead, Alan says to give a price range (if that makes business sense, of course). As a simple example, you can say, “Our prices range from $x – $x, with our most popular option being $x.” Along with a price range, consider pointing out some of the ways you differentiate in order to sell them on you, not just your price.
• Don’t be afraid to address a low budget. If a couple gives you an idea of their budget for your service and it’s far below your pricing, politely let them know that you completely understand but that you cannot deliver the quality of work that you do within that budget. If possible, Alan recommends giving them other options that you can provide, although it won’t include everything that they want, within their budget.
• Don’t dump data and attachments. Instead, give a short, concise answer and try to make sure that it fits on a smartphone screen without the need to scroll. Most people will be answering and opening on their phones and if the information given is too long or overwhelming they aren’t likely to read it or keep it.
• Don’t forget about your market as you’re re-evaluating your prices. You’re worth every penny you charge for your services, but there is something other than your experience and operating costs that influences your pricing—the market. The market you run your business in influences what the average cost (or expectations of cost are) and the economy overall influences how much money couples have to spend on their wedding. Be mindful of both and how they might impact how you need to price your services.
• Don’t forget to educate couples about your prices. This is what people are talking about when you hear conversations about communicating your value. Showing people a numerical price is one thing—showing them what goes into it and why is another. 
• Don’t feel guilty about any rate changes that may occur. Change is the only constant in life, so you shouldn’t feel guilty when you decide to change your prices. Especially if you have done the research or thought long and hard about what changes you’d make. Just be sure to be able to communicate the “why” when couples might ask.

 

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