Comments on: FAQs: Do you know or even care what your competitors are charging? http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/ Preston Bailey is an award winning event designer. He is renowned for his breathtaking weddings, unique floral designs, centerpieces, floral artistry, and inspired table settings. Fri, 24 May 2013 18:56:01 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Nate` http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-5045 Nate` Mon, 21 Feb 2011 03:19:33 +0000 http://blog.prestonbailey.com/?p=4292#comment-5045 Mr. Bailey, I'm not to concern about my competitors, each Planner/Floral designer has their on style and mark to make in this world. Not too concern about the prices that my competitors are charging considering that we have a very unique service and our price is never the same because each bride has diffrent style and request for their wedding. PS Preston you ROCK. Mr. Bailey, I’m not to concern about my competitors, each Planner/Floral designer has their on style and mark to make in this world. Not too concern about the prices that my competitors are charging considering that we have a very unique service and our price is never the same because each bride has diffrent style and request for their wedding. PS Preston you ROCK.

]]> By: Occasions 2 Remember http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4718 Occasions 2 Remember Tue, 08 Feb 2011 01:57:55 +0000 http://blog.prestonbailey.com/?p=4292#comment-4718 Thank you for bringing these important issues to the fore-front! Although I do care what my Competitors are charging, I try to convince the client the value of the service that I am providing. If a Client attempted to present me with another Vendor's proposal I would NOT accept it. Before I present a proposal to a Client, I find out in advance if 1) they are accepting proposals from other vendors; 2) I have a clause in my proposals that state "the design ideas are copyrighted and cannot be used without our written consent). This protects me in case the Client wants to shop around my concept as well. Thank you for bringing these important issues to the fore-front! Although I do care what my Competitors are charging, I try to convince the client the value of the service that I am providing. If a Client attempted to present me with another Vendor’s proposal I would NOT accept it. Before I present a proposal to a Client, I find out in advance if 1) they are accepting proposals from other vendors; 2) I have a clause in my proposals that state “the design ideas are copyrighted and cannot be used without our written consent). This protects me in case the Client wants to shop around my concept as well.

]]> By: GinaShiShi http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4707 GinaShiShi Mon, 07 Feb 2011 17:49:42 +0000 http://blog.prestonbailey.com/?p=4292#comment-4707 I am so happy to have read this post! I had this very same thing happen a few weeks ago where a bride asked me to match a competitor's extremely low price, and I refused. It didn't feel great to lose the client, but it felt good to know that we weren't discounting ourselves, as Alison mentions below. Unfortunately there will always be those clients where cost is the only or overriding factor in their decision making, and over time, I've found those are the clients that just aren't for us. I'm happy to make something work for a client in terms of customizing services, and charging appropriately, but to blatantly undercut a competitor simply in the interest of getting the client instead, is just bad business. I am so happy to have read this post! I had this very same thing happen a few weeks ago where a bride asked me to match a competitor’s extremely low price, and I refused. It didn’t feel great to lose the client, but it felt good to know that we weren’t discounting ourselves, as Alison mentions below. Unfortunately there will always be those clients where cost is the only or overriding factor in their decision making, and over time, I’ve found those are the clients that just aren’t for us. I’m happy to make something work for a client in terms of customizing services, and charging appropriately, but to blatantly undercut a competitor simply in the interest of getting the client instead, is just bad business.

]]> By: GE MASANA http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4633 GE MASANA Thu, 03 Feb 2011 15:10:57 +0000 http://blog.prestonbailey.com/?p=4292#comment-4633 Preston, it sounds like you've been getting the wrong people in front of you lately. And it's causing you to think price is the issue. It's not. The question that should pop into your head in this particular scenario is: "if you like their price, why are you talking to me?" When someone asks you to match another's price what it indicates is that they want *you* but not your fee. It's a tactic, one could say, to get you to lower your fee. They need to understand that for the other guy's fee, you get the other guy - his abilities, his aesthetics, his service, his reputation, his experience. Yours costs more. You did Oprah's birthday party for crying out loud. You are not the other guy. If they want a lower price, then you CUT services and product to get there - but you can't cut your profit margin. Cutting profit margins starts the descent to going out of business. Preston, it sounds like you’ve been getting the wrong people in front of you lately.

And it’s causing you to think price is the issue. It’s not.

The question that should pop into your head in this particular scenario is: “if you like their price, why are you talking to me?” When someone asks you to match another’s price what it indicates is that they want *you* but not your fee. It’s a tactic, one could say, to get you to lower your fee.

They need to understand that for the other guy’s fee, you get the other guy – his abilities, his aesthetics, his service, his reputation, his experience. Yours costs more. You did Oprah’s birthday party for crying out loud. You are not the other guy.

If they want a lower price, then you CUT services and product to get there – but you can’t cut your profit margin. Cutting profit margins starts the descent to going out of business.

]]> By: Nishaka http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4627 Nishaka Thu, 03 Feb 2011 12:08:40 +0000 http://blog.prestonbailey.com/?p=4292#comment-4627 This is excellent information. This year my goal was to focus on making a 40-50% profit per project. I have a better handle on now on my cost per project when working on the estimate. As it relates to the competition, I like to know the exact services that they are providing. Comparing if it's apples to apples. Sometimes it's not. I also evaluate if the competition is a part time planner versus a full time planner like myself. I've found that Planners who work their business part time have a full time job and tend to have lower prices than I do. Therefore, it makes me look higher. Per event now, I have a minimum of 2-3 people staff persons in the labor cost, plus other supplies, etc. needed to complete the project. This is helping me have a better and clear conversation with the potential client of the pricing for the event. I have recognized and have been told that I am a mid-to-high end Event Planner. That is my market. Locally, clients and potential clients have are seeing the value, creativity, precise execution, and professionalism that me and my team bring to their event. We will continue to deliver the results and will continue to get to the right clients for our business. Nishaka This is excellent information. This year my goal was to focus on making a 40-50% profit per project. I have a better handle on now on my cost per project when working on the estimate. As it relates to the competition, I like to know the exact services that they are providing. Comparing if it’s apples to apples. Sometimes it’s not. I also evaluate if the competition is a part time planner versus a full time planner like myself. I’ve found that Planners who work their business part time have a full time job and tend to have lower prices than I do. Therefore, it makes me look higher. Per event now, I have a minimum of 2-3 people staff persons in the labor cost, plus other supplies, etc. needed to complete the project. This is helping me have a better and clear conversation with the potential client of the pricing for the event.

I have recognized and have been told that I am a mid-to-high end Event Planner. That is my market. Locally, clients and potential clients have are seeing the value, creativity, precise execution, and professionalism that me and my team bring to their event. We will continue to deliver the results and will continue to get to the right clients for our business.

Nishaka

]]> By: Sheila Hylton DeToro Forlenza http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4613 Sheila Hylton DeToro Forlenza Wed, 02 Feb 2011 18:56:25 +0000 http://blog.prestonbailey.com/?p=4292#comment-4613 You present a interesting situation, considering our luxury niche spa market. We definitely believe that clients get what they are willing to spend. If the clients requesting services as likely to be repeat customers or are presenting a large number of services they desire, we are likely to provide a 10% discount which does allow us to make a profit. However, when potential clients reveal they aren't ideal clients by presenting a price that is indicative of run of the mill services, we do not hesitate with turning them away. We too have competitors calling about pricing and unique scenarios in order to ascertain our pricing and flexibility. Comes with the territory. You present a interesting situation, considering our luxury niche spa market. We definitely believe that clients get what they are willing to spend. If the clients requesting services as likely to be repeat customers or are presenting a large number of services they desire, we are likely to provide a 10% discount which does allow us to make a profit. However, when potential clients reveal they aren’t ideal clients by presenting a price that is indicative of run of the mill services, we do not hesitate with turning them away.

We too have competitors calling about pricing and unique scenarios in order to ascertain our pricing and flexibility. Comes with the territory.

]]> By: Kelli Taylor/Daniel Taylor Photography http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4606 Kelli Taylor/Daniel Taylor Photography Wed, 02 Feb 2011 04:14:40 +0000 http://blog.prestonbailey.com/?p=4292#comment-4606 Pricing is such a great topic to discuss! Thanks for the thoughts and advice. Pricing is such a great topic to discuss! Thanks for the thoughts and advice.

]]> By: Stephanie http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4605 Stephanie Wed, 02 Feb 2011 03:19:58 +0000 http://blog.prestonbailey.com/?p=4292#comment-4605 Preston I have discovered for me it has very hard to do a job at my 100% creativity and get paid 50 or less percent of it's value. So I tried very hard in the past to go ahead but it just became to draining so I just don't. For me I just feel so limited and it frustrate me so bad till I just rather not make a dime so for me discounts are not on the table. I would rather do less work give them a smaller look for the money im presented. I recently had a lady who wanted 6 foot Manzinita trees complete with diamond strands and real hydrenga for 50 bucks a table. She was getting married in Brentwood Tn (one of the most affluent city in the US). We both know $50 would not even cover the cost of 3 hydrangea let alone a 6 ft tree. Needless to say when I told her my price She ended the meeting. I try not to think about my competitor pricing because I keep this one statement in my mind. " I want people to come to me because I am good at what I do not because I'm cheapest at what I do." I may do less jobs but I won't have the stress my competition has doing more work for less money. Preston I have discovered for me it has very hard to do a job at my 100% creativity and get paid 50 or less percent of it’s value. So I tried very hard in the past to go ahead but it just became to draining so I just don’t. For me I just feel so limited and it frustrate me so bad till I just rather not make a dime so for me discounts are not on the table. I would rather do less work give them a smaller look for the money im presented. I recently had a lady who wanted 6 foot Manzinita trees complete with diamond strands and real hydrenga for 50 bucks a table. She was getting married in Brentwood Tn (one of the most affluent city in the US). We both know $50 would not even cover the cost of 3 hydrangea let alone a 6 ft tree. Needless to say when I told her my price She ended the meeting. I try not to think about my competitor pricing because I keep this one statement in my mind. ” I want people to come to me because I am good at what I do not because I’m cheapest at what I do.” I may do less jobs but I won’t have the stress my competition has doing more work for less money.

]]> By: Sam Scoutas http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4604 Sam Scoutas Tue, 01 Feb 2011 22:44:26 +0000 http://blog.prestonbailey.com/?p=4292#comment-4604 Preston i love this issue. I love when they bring me pages of your books and say we want something like this and we want to spend $100.00 per table setting. Knowing competitors pricing is arming yourself with the knowledge and ammunition to be able to confidently sell YOUR products or services. I work or have worked alongside most of our competitors at one point or another being a decent person goes along way to getting information. Most clients understand "you get what you pay for" they just choose to ignore it. Preston i love this issue. I love when they bring me pages of your books and say we want something like this and we want to spend $100.00 per table setting.
Knowing competitors pricing is arming yourself with the knowledge and ammunition to be able to confidently sell YOUR products or services. I work or have worked alongside most of our competitors at one point or another being a decent person goes along way to getting information. Most clients understand “you get what you pay for” they just choose to ignore it.

]]> By: pippa http://blog.prestonbailey.com/2011/02/01/faqs-do-you-know-or-even-care-what-your-competitors-are-charging/#comment-4602 pippa Tue, 01 Feb 2011 20:19:49 +0000 http://blog.prestonbailey.com/?p=4292#comment-4602 I too have been approached by clients seeking a "better deal". Inevitably, this ends up being a total waste of my time as I refuse to undercut my services. I actually really feel for the original vendor, because their time, talent and ideas have been wasted too. One of my favourite quotes is "Quality is remembered long after the price is forgotten" and I try to keep that in mind when I'm pricing a job : ) I too have been approached by clients seeking a “better deal”. Inevitably, this ends up being a total waste of my time as I refuse to undercut my services. I actually really feel for the original vendor, because their time, talent and ideas have been wasted too. One of my favourite quotes is “Quality is remembered long after the price is forgotten” and I try to keep that in mind when I’m pricing a job : )

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