SHOULD I BE OFFERING DISCOUNTS DURING THIS TIME OF UNCERTAINTY?

Wow! What a weird time?! None of us know what the future holds and whether you’re just getting started or you’re an established leader in the industry, unpredictability can be scary. So scary that no one would blame you for entertaining projects and pricing you’ve long outgrown. Because of that, I want to prefice this post by saying, there’s no judgement here. We’re all in different financial situations with a variety of people depending on us from employees to our families and of course, our clients. So my short answer is, you need to do what’s right for you and your personal situation. Read no further. Just dig in and figure out what you need to survive the storm. If you do have the luxury to be more strategic, my advice depends on your existing brand and clients as well as the vision for your business. More specifically:

If you are a newer planner or a planner who has always sold your services by offering competitive pricing, then you should continue to be competitively priced. If comparing yourself to a retailer, for instance, there is and always will be a market for the Target consumer. These couples are unlikely to invest in full service planning but still need and want help on some level. There’s no harm in being the person those people go to, IF, you’re happy with the work. In the way Target offers accessible pricing for a specific market, you too have every right to create that niche for yourself. If this is your vision and your current market, then yes, you should continue to compete on price as you always have. But know that this model isn’t sustainable on your own and you will eventually need to create a scalable model with the proper support, but that’s another topic all together…

Staying with the retail comparison, if you’re a planner who’s more like Coach or even Rag & Bone, for a bit edgier reference, then it gets a little more convoluted but you do have options. The couples who hire you want higher quality, a brand they resonate with and are willing to invest a bit more in your services but aren’t going to break the bank overall. If this is the market you’re currently serving, then a tiny discount here and there shouldn’t do brand damage. Just like you see these retailers offering subtle pushes to shop like free shipping or 15% off, you could to offer little incentives as well. Just like those brands, you’re not reducing or changing your brand by doing so. You’re simply being strategic to get couples to book now instead of later, which may bring in a bit of revenue during what otherwise may be a slow booking period.

Now, if you’re the Chanel of the event industry, you have a very hard decision to make. Because if anyone gets wind of you offering discounts, you will not only do brand damage but you’re likely to upset your existing clients. Remember Chanel level consumers value the exclusivity that the brand offers them. Their prices stay consistently inaccessible to the everyday consumer so the target market can feel special or even elite when they make a purchase. If you’re existing clients who paid Chanel prices for your services find out you’re offering up the same service for even 20% off, they’ll be confused and will lose trust in the brand and experience they’ve invested in. I don’t know about you, but I’ve never seen Chanel have a sale and the above is one of the reasons why. How mad would you be if you invested $5000 on a handbag only to find out they were peddling them out the back of their shop for 1/2 the price because they fell on hard times? That’s just not how luxury brands work and if you currently service high net worth individuals as your primary market, then you can’t do that either. So again, there’s no judgement. You have to do what’s best for you on a fundamental level right now, but if you discount your rates right now, you are making a conscious decision to change your brand and business model for the foreseeable future.

So to answer the question, “should you lower your prices during this time of uncertainty,” my response is: it depends on what your brand stands for and who you service. There’s no shame in being the Target of the industry or never wanting to be the Chanel of the wedding world. But you do have to know who your target market is, what the end vision looks like and act accordingly.

If you want to learn more about pricing models or branding for your business, I’ve created sessions for both topics. I’d love for you to join me! And if you want to learn more about what you need to think about as a business owner right now, download our “12 THINGS TO DO DURING TIMES OF UNCERTAINTY” and an accompanying worksheet to guide you through your own process.