Name your price!

What are some of the deciding factors that people use when choosing vendors for their events? Some people choose the vendor that seems to:

  • provide the most convenience
  • provide the best value for their dollar, while falling within their budget or
  • meet or exceed their needs, even if it’s above their budget
  • have the best chemistry with the client or the one that is a right fit (some people rely on their gut feeling)

    How does the vendor decide what their price on tangible goods should be? How does a vendor decide what to charge for their service {their time, for providing peace of mind to their clients, for the value given to a customer after years of growing in their industry (in this case, the wedding and event industry)}? How does a vendor convince a bride that using them (as a day-of coordinator for instance) will ensure that her wedding runs smoothly, on-time and that the glitches we have all seen in weddings we have attended, will not happen at her wedding?

    This was and will most likely continue to be a touchy subject in our company. When it comes to the tangible products we provide {such as balloon arrangements (for birthday parties), floral arrangements (for weddings and other life events), candy displays, favors, etc.} it has become easier to name our price. When dealing with the intangibles (such as our Service Fee) it tends to get a little tricky because some customers may not see the value in hiring someone for something that they believe a family member do. Please keep in mind that during a wedding rehearsal for instance, someone’s family members or friends may be more inclined to listen to a vendor or a third party that has been hired, versus their aunt Sue or cousin Michael when trying to line up their wedding party. Also, how great is it to walk into an event you have been planning, and not need to spend hours running around setting up centerpiece and/or balloons? It is usually worth it to hire people with expertise in the industry.

    When we started our business we did not know the value of our time and expertise. After over 100 events in the last couple of years, we are realizing the importance of the knowledge we have acquired through the years. We are better equipped with proof (check out our YELP and Wedding Wire reviews) from some of our customers that what we bring to the table is worth every penny we charge.

    * * * * * * * * * * *

    If you are a vendor: How do you name your price? Do you:

  • do market research to see what other vendors in your industry would charge for a similar item and base your price on that?
  • use the cost + XX% mark-up that some vendors use?
  • have a base rate for your service, plus an hour rate if XYZ or ABC occurs?
  • cater to the clients budgetary constraints by providing products that the client can afford?
  • use some other approach not listed here
  • If you are someone looking to hire a vendor for your event: what are the deciding factors in choosing vendors?

    Please leave a comment below with your answers to the questions above. Thanks!!


    Leave a Reply

    Fill in your details below or click an icon to log in: Logo

    You are commenting using your account. Log Out /  Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out /  Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out /  Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out /  Change )


    Connecting to %s