Raise your prices at least once a year! During the first 2 years that I was turning my struggling wedding business around, I raised my prices 3 to 4 times a year. Was I scared? Heck yes! What if I raised my prices and no one booked me? Then I’d be screwed for that wedding season. But I’ve always believed that when you’re uncomfortable and scared, you’re doing it right. Well, look where I’m at now. No regrets. Now it’s your turn, you can do it too!
First of all! I want to make sure you’re charging the minimum of the standard floral pricing formulas. If you aren’t already! What are you waiting for? What difficulties do you have charging industry standards? Read to the end to help you with this!
Raising your prices every year is a given, but there are other times when you should also consider raising your prices:
1. When Costs of Goods & Supplies Go Up
The fact is that everything goes up due to inflation. We cannot get away with this. The price of fuel and gas also goes up, so when we have our supplies shipped to us, our COGS (cost of goods sold) goes up, so we need to take this into consideration as well.
2. When You’re Consistently Booked Out
When the demand for your wedding service is high and you’re consistently booked out, this is a sign that you should increase your prices. When you’re always fully booked, you need a way to filter out the low-paying clients so that you can find the higher-paying ones, the ones who are willing to pay a premium for your expertise and experience. That way, you can concentrate on booking and serving these couples and bring more into your business even if you’re doing the same amount of weddings.
When most of your couples are saying yes to your quotes and proposals, this is also a sign that your prices are too low and maybe much than your competitors, so you need to raise your prices.
3. If You Cannot Afford Help
If your current profit is only enough to pay yourself a salary (or not even!), you need to raise your prices so that you can (pay yourself &) hire an assistant or extra help. Offloading some of your admin and repetitive tasks to another team member can help you grow your business. You need to allocate your time as the CEO for business activities that can actually move the needle in your business.
4. When You Invest in Yourself
Investing in yourself and continuing education should be part of your business plan & budget. Every time you level up your skills and knowledge, you should be raising your prices because you have more to bring to the table and you can better serve your wedding couples.
5. When You Invest in Your Business
Did you move into a bigger studio or upgraded your floral fridge to be able to do more volume and get a bigger team together? You should be raising your prices.
If you’re a photographer or videographer and you upgraded your cameras and equipment, you should be raising your prices. If you’re a DJ and you upgrade your equipment or lighting, you should be raising your prices.
Why Give Ourselves a Raise?
Raising your prices mean that you can also give yourself a raise at least once a year. I mean, you get a raise every year at your 9 to 5 job, don’t you? You should be doing this as a business owner too. Here are 3 reasons why you need to give yourself a raise:
1. Keep Up with Inflation
That’s just how the rest of the world operates! Giving ourselves a raise every year can help us keep up with the rising cost of living and maintain our standard of living.
2. Reward Ourselves for Our Hard Work
When we work hard and achieve our goals, we deserve to be rewarded for our efforts. Giving ourselves a raise can be a way to acknowledge our hard work and recognize our accomplishments. We gotta treat ourselves well too! I mean, that’s the beauty of being in business after all, right?
3. Increase Our Motivation
Knowing that we have a raise coming can be a powerful motivator. It can help us stay focused and committed to our work, knowing that our efforts will be rewarded. More motivation, less resentment.
Are you struggling to charge properly in your wedding floral design business like I had been for over a decade? I’m hosting a free live masterclass: 5 Pricing Mistakes to Avoid & How to Have a Profit Margin of 70%+. You can save your spot here. If you can’t make it, make sure you still sign up to get the replay. Join me Live and let’s get your prepared for this wedding season!
Cheering you on!