There's also something very unique to the wedding indursty and price increase. When you are considering raising your price, you have to be looking well into the future, because when you increase your pricing, you do not get to feel that increased revenue until the next year. Within that year, there are several things that could affect your bottom line like the decisions of your competitors, a new venue being built in your market, inflation, industry trends and your ability to affect the demand in your industry, that is how differentiated are you from the competition. For example most people may be willing to pay 8k for your wedding venue but if your similar competition charges $7,800 you are now instantly $1,000 more expensive than your competition and you can suffer the perils of "Price Elasticity"
Great interview,.. I'll add. I feel like the first thing to think about before you start working on a business plan or seeking any financing, is trying to calculate a reasonable and conservative Break even Point. This was the first thing i did wen i started my venue. My break even point was apx 19 weddings a year. The next step i took was what could i possibly build that could get me more than 19 weddings a year. The current competition at the time was averaging about 30 weddings a year, So i discerned that if i can build a venue better than the competition, and adequately market it, I will exceed my break-even point every single year to date. We had about 42 weddings our first full year, and the next project for me, was how do i sustain that and how do i use SWOT analysis to continue to succeed.
OK, I am super interested in your story, thanks so much for commenting, and I’d love to chat more, reach out to our email - hello@thevenuerx.com - I would love to hear more about your experience!
There's also something very unique to the wedding indursty and price increase. When you are considering raising your price, you have to be looking well into the future, because when you increase your pricing, you do not get to feel that increased revenue until the next year.
Within that year, there are several things that could affect your bottom line like the decisions of your competitors, a new venue being built in your market, inflation, industry trends and your ability to affect the demand in your industry, that is how differentiated are you from the competition. For example most people may be willing to pay 8k for your wedding venue but if your similar competition charges $7,800 you are now instantly $1,000 more expensive than your competition and you can suffer the perils of "Price Elasticity"
This is such an amazing comment, wish we could pin it!! 📌 really good comment on things to consider when just pricing.
Great interview,.. I'll add. I feel like the first thing to think about before you start working on a business plan or seeking any financing, is trying to calculate a reasonable and conservative Break even Point. This was the first thing i did wen i started my venue. My break even point was apx 19 weddings a year. The next step i took was what could i possibly build that could get me more than 19 weddings a year. The current competition at the time was averaging about 30 weddings a year, So i discerned that if i can build a venue better than the competition, and adequately market it, I will exceed my break-even point every single year to date. We had about 42 weddings our first full year, and the next project for me, was how do i sustain that and how do i use SWOT analysis to continue to succeed.
OK, I am super interested in your story, thanks so much for commenting, and I’d love to chat more, reach out to our email - hello@thevenuerx.com - I would love to hear more about your experience!
great advice thank you!!