Got your attention, didn’t I? 🙂
In our industry, all you ever hear is “charge what you’re worth.”
Honestly, how many times has someone said that to you?
Their intentions were good, and a few years ago that philosophy had a purpose. This catch-phrase got popular at a time when the wedding industry was growing rapidly, with a lot of new businesses entering the market.
The problem at the time? These businesses were selling their products and services for less than my Starbucks coffee.
And so the industry sent out this catch-phrase in a wave of solidarity, encouraging newcomers to increase their price to a reasonable fee.
And it worked. Kinda.
But things are much different today, and “charging what you’re worth” doesn’t necessarily ring true anymore.
Here’s the tea: the pricing for your services and products is calculated from a variety of factors. And worth doesn’t make the list. Here’s what does:
- Experience level
- Geographical area
- Your ideal customer avatars
- And most importantly, the kind of profit you want to make in your business
Your worth doesn’t really come into play here and give me a chance to show you why. You could be worth a million bucks, but:
- if your experience level says otherwise, no one is going to pay that
- If you don’t live in a geographical area where there are tons of millionaires getting married, then you’re going to end up being a broke millionaire, because no one has the coin to hire you
- If your ideal customers won’t pay that kind of fee, then you’re not going to have customers
- And if your business expenses are $999,999.98 a year, well my friend, you just made two cents
Yes, you are worth something AND you are very worthy of making the kind of money YOU want to make. However, the pricing for your product or service doesn’t hinge on your worth. It hinges on what YOUR ideal customer is willing to pay and what YOU want to make as a profit.
A pricing formula in the wedding industry looks different for EVERY business. I don't believe there is a one-size-fits-all formula for every business owner. Setting prices has always been, and will always be, more of art than science.