I’d like to elaborate further on one of yesterday’s questions: Do clients think they can get a bargain from you or do they think you’re too expensive? First, let me set the record straight about my brand.
Yes, clients hesitate to call me because they think I am too expensive. But, no when I first started I did not sit down and say, “I am going to start a company that only deals with the high end market.”
However, there were three elements that were important to me then and still are now:
- Quality. I started as a florist, and only used the best quality flowers around. (I was and still am a bit of a floral snob.)
- Design. Even If some folks didn’t like my design, I tried to identify the folks who did.
- Service. This is still a big learning curve. Fist getting the job, then designing it, and most importantly delivering on expectations.
I have news for all you beginners. When I first started, I lost a lot of money by not charging properly. Again, this was mainly for three reasons:
- Insecurity. Because I did not know what I was doing, I did not think I was worth it. (Not to mention at the time I suffered from low self-esteem.)
- Integrity. (Or maybe stupidity.) I just wanted to do a great job, even if it meant giving it away.
- Ignorance. I had no understanding about proper pricing. (E.g. making at least a 50% margin)
So now, many years later, I ended up in the high end market after a lot of trial and error, while still trying to educate clients about what things actually cost. I have strong advice for all of you who base your business on only giving bargains, while taking away business from other folks.
You are giving the industry a bad name. Clients are beginning to think the event industry is equal to a bargain basement. Clients are taking the lowers prices and starting to think this is the norm.
It’s time we start taking ourselves and our industry seriously and start charging what we deserve, no more no less.
What is your opinion?
PREVIOUS
George Bernard Shaw once said: “You see things and say, ‘Why?’ But I dream things that never were and say, ‘Why not?’” That quote embodies how Preston Bailey approaches every event.
Birds of a Feather Events
February 22, 2011
I definitely need help in this department. How do I know if I am pricing correctly?
Meaghan
February 22, 2011
Great post again! I appreciate your honesty about your start into this industry. I think a lot of us feel the same way when we open our doors. Keep up the awesome posts – they’re always inspiring.
Los Angeles Event Planner
February 22, 2011
I deal with the same high end perception that you deal with (without the name recognition that you have).
For years I fought, trying to convince potential clients that they could afford me. Since that never worked, I raised my prices to the level that the market believes them to be (double). Though the economy sucks right now, it seems to be working.
Abigail
February 22, 2011
We always talk about this here. People never go to a clothing store like, let´s say Abercrombie and say: Please low the price for me because I really love these jeans. However, they come to my store and ask me to low (lower?) the price of favors and tiaras, etc. Why? because some people in the market has done really bad to our business. People think they can bargain everything in the wedding and events industry. The wedding industry is one of the industries with less “entrance requirements”. Everybody think they can sell to brides and to get their money they set low standars of quality and service. People are willing to pay what they ask for a pair of jeans but they don´t want to pay for a handmade bouquet with the best flowers. Who is to blame for this? Many, many, many vendors in the wedding industry. Yes, we have to charge what we deserve!!
Lindsey Amos
February 22, 2011
Have your cake and eat it too by faking it: http://tinyurl.com/4ahn7mh Elaborate Hoax? It gives the impression that you forked out for a top-tier cake, but you’ll pay only a slice of the cost. Would love to hear your thoughts on this? I always look forward to your blog posts!
Waasze Volks Radzi
February 22, 2011
Again, thank you Preston you manage to put our thoughts in great writings. Especially due to a recent job that I undertake from a fashion designer cum wedding planner, although he already had what in his mind and here I am as a flower designer/arranger manage to pull of what is in his mind.
As for the fee, he wasn’t willing to spent on my services and had a bargain, and can’t help it to notice i was cheated. I just did it out of goodwill although with a low fee because of a recommendation.
Thank you for this, I’m back on my track
Jeanne
February 22, 2011
Remember how people didn’t trust car dealers or car salesmen because of sales tactics? The same thing is happening in the wedding industry – people are often counseled to not say the word “wedding” when calling about information.
What I wish I could learn to do is to separate the people who are just trying to lower the price because they don’t appreciate the work from the people who can and do appreciate it, who recognize that this is a business just like any other. There are people who will always undercut you, and people who will always overcharge, but these are the two ends of the spectrum.
People who are overcharging or undercharging aren’t likely to stop any time soon.
Tere
February 22, 2011
I agree with you. I have been very stupid with always trying to give extra in hopes that my client will be over joyed, that they would tell others. Well they did and each couple that came to me wanted more than they are paying for. I recently went back to school and have my certificate in floral design and will return to get my license for florist. Since I have invested in improving my skills to provide a great service, I deserve to be paid for it. That is my new attitude for me and my business. Thanks Preston, you were my confimation for today!
kathleen
February 22, 2011
preach! i’m totally bookmarking this page.
janet
February 22, 2011
So true – the one thing I notice as a cake maker is that some customers want a professional job at Supermarket prices – Its just not possible – if clients really have a mini budget then DIY is the only real option or dont have flowers/cake etc
I also agree that in the very early days we are so keen to be thought well of we do ‘giveaways’ well some of my friends are shocked I want to charge them but most of them understand if I am making their cake I have to turn away paying customers!
JL_DESIGNS
February 22, 2011
thank you for this preston! it’s all so true and such a great reminder for us as designers!
Sheila
February 22, 2011
So VERY true. Can’t be said enough. You’ve inspired me-yet again.
Sheila
Flowers by Bornay
February 22, 2011
True! thank you for this!
From Barcelona,
Joan.
Sonia
February 22, 2011
Mr. Bailey, I think many of us are where you were. We have to make a living, pay expenses, etc. When you continually get clients who want to bargain only because they want the things they see on the hundres of wedding blogs that now exist, the hundreds of wedding magazines and the many bridal shows currently running; you have to pick and choose jobs carefully and do exactly what you did. Offer good design and good service and be patient. There is enough work for everyone. I will not let what others charge dictate my prices. I will wait to get exactly what I am worth and still give good value for cost. I am done overindulging clients’ lusts for things they see in magazines that they can’t afford. They are most welcome to find someone else who will. None of us should feel threatened by this. I have decided to spread my wings like an eagle and wait for the wind to soar and stop flapping my wings like a chicken. Thank you for being an example.
Rayna L. Brown
February 22, 2011
I agree 100%. I low balled on my first paid booking and I was so angry the entire way through because they ran me in the ground. I had to put in so much time for the tiny bit that I charged but I HAD to do a great job because my reputation was on the line. I have now re-invented my company name, brand and quality etc. In all honesty, now I get less calls but my booking percentage is higher. I list starting prices on my site and it weeds out the clientele that may cause me to compromise the integrity of my services. I believe that once we begin to actually put in the work and time to create these beautiful events, we low ball a lot less because we actually DO know what it takes to execute. I was recently asked to do a job for not even %25 of what I would charge. I was willing to give a discount but no way. The dumped me
and went to someone who just helps out and that person ended up (unknowingly) come right back to me to ask what to do and what to charge. I have learned that my work is worth what I charge, if not more. My services and my brand speak for the itself and I won’t compromise the integrity of my services.
ann
February 22, 2011
Your posts are always so timely and helpful. We frequently leave an event installation feeling resentful and frustrated because even a small affair, done well, takes time and preparation that we clearly aren’t charging enough for. We use premium flowers, offer very comprehensive and attentive service, and offer a unique look within our area, but clients don’t seem to understand why florals cost as much as they do. Our attempts to educate the public are obviously falling on deaf ears!
I would love to have information on pricing; I’m afraid it may be why we feel frustrated and poor so much of the time. Thank you for these forums!
Vivian's Decor
February 22, 2011
You rock Preston!
Odyssey Events
February 22, 2011
Preston i agree with you 150% in your statements and i am not just saying that because you are Preston Bailey but because you did it the hard way to start with and you know what it is to dip into your own pocket to not disappoint e.t.c
Yesterday evening i had a 2nd consultation with a bride and her mother. For our company 2nd consultation is the dreaded costings evening. I cost each element up individually and lay it all out on the table including styling and co – ordination fee e.t.c. Last night i had the brides mother inform me that they should not have to pay a styling and co – ordination fee and that our industry makes enough money from the elements e.t.c .
Very politely i responded if you were to hire an artist to paint your portrait would you pay only for the paint? needless to say the deposit was paid and let the show begin hugs and kisses later and everyone understood after explaining the costs.
We put it simply if a floral centerpiece has 50 roses in it in your design and each rose is say $5.00 each for example that is $250.00 before you even lift a finger to start designing it. We always educate the customer so they understand the bottom line.
Debi Sementelli
February 23, 2011
Preston,
So glad to hear you bring this whole topic up. I am a lettering artist with 25 years of experience. Calligraphy has become very popular and many people who take one class are now advertising to do calligraphy at a very low price. I have gotten calls from prospective clients who don’t understand the difference in the end product between someone who just started and someone with experience. They just want my price and when it is higher than the beginners, they don’t get it. It’s not worth it for me to go down on my price and yet I am having a hard time helping potential clients, who are ONLY considering the price, understand the difference that an experienced professional brings to their event.
Mille Fiori Floral Design
February 23, 2011
I just started the business, and thanks for the big insight because I tend to give away my talent and charge just a minimum amount to this fabulous arrangement. I love doing it even if Im just giving it away. Thank you very much Preston will definitely change my path.
Melonie Karl
February 23, 2011
After reading a previous post on pricing, I realized that I was giving away my services. I have since adjusted my pricing and business is picking up. Thanks Preston.
Angela Proffitt
February 23, 2011
This is a great post! Itt goes back to that saying “you get what you pay for.”!
Ebony
February 23, 2011
This resonates with me in a MAJOR WAY… Insecurity. Because I did not know what I was doing, I did not think I was worth it. (Not to mention at the time I suffered from low self-esteem.)
No matter how many people feature my parties (including Mr. Fabulous himself Preston Bailey) I still feel insecure! I’m sure that goes away with experience but it is something everyone should acknowledge and try to move past.
Ebony
Sparkling Events & Designs, LLC.
Saundra, get real sales coach
February 26, 2011
Thank you Preston!!!!!
I wish more people would understand this.