There are 582 million entrepreneurs in the world and I bet that nearly every single one of them has had the same problem…pricing and packaging. No matter your industry, expertise, or how long you have been in business, pricing your services is such a critical decision that can either leave you heading to the bank with profit or headed to the poorhouse with empty pockets. In this article, I’m going to share with you my step-by-step process for determining the right price for your event services, but please note that this can be used for other products and services as well. So, pour yourself a drink, tie your hair back, grab a pen, and let’s get started!
Step One: Decide what you’re going to sell.
There are so many different services and types of projects that fall under event design. These include things like draping, balloons and even making centerpieces. The list goes on and on which makes it even more important to narrow down what you do. A company that does it all usually falls short in one or more of its services, so it’s best to start with a very narrowed approach and expand from there.
This will also help your marketing services because clients will to associate x, y, and z with your company so that when the time comes, they think of you first because of your consistently focused advertisements, social media posts, and other content. By narrowing down what you are doing, it is much easier to do your pricing because you can now examine the cost of materials and labor.
***Tip: You should probably start with a service or product that you love to do and have great skill in. As you learn and grow, adding more things along the way. This goes for event design and any other industry. It’s all about building a solid foundation!
Step Two: Define your Target Audience.
It doesn’t matter if you sell light-up wands at a festival or pipe and drape designs, defining a target audience will save you so much time and money. A target audience is who you are targeting when selling your products and services. You can narrow this down by defining their location, age range, income, interest, and event heir home life. It’s important to narrow this down because marketing to everyone is silly. I can tell you right now that the 98-year-old woman in Kansas is not looking to purchase a membership to your yoga studio in Florida, so why should your ad be on her newsfeed?
In addition to that, your pricing often reflects the clientele. If your pricing is in the thousands range, you need to market to those who can afford it. By defining your target audience, you will learn how to market your services. If you have already defined your target audience and want to delve further, why not read my article on defining your client’s avatar?
**Tip: You can use your new-found target audience and client avatar to create your social media content, your ad copy, and emails too. You can decide which online platforms to use, physical locations to target with ads, and more. If you are trying to figure out your social media campaign, read this article to learn about what your audience wants.
Step Three: Create packages for your services.
The easier you make it for your customers to buy your services, the faster you’ll close deals and make more money than you’ll see hit your bottom line. To understand the importance of packages, you need to put yourself in the shoes of your client. During a consultation, you are selling the promise of doing something for them and usually asking for some money upfront to do so. There isn’t anything for them to see, touch, or take home for instant gratification. You can’t waltz them through one of your past weddings to make sure that they like everything.
The minute you step into their shoes, you will understand why it is so hard for customers to be trusting and hand over hundreds of dollars. The goal is to make them feel comfortable when they are buying from you. To do that, it’s important to package your different services. Create a great offering at different tiers to fit each person. If you present your items individually, at different price points, you can run the risk of losing your customer because it’s simply way too much.
If you need a complete breakdown of how to package your services and price your draping, Module 5 in The Drape & Design Membership Program covers just that! You can signup here. In the meantime, make sure to follow me on Facebook and tune in every Wednesday at 9:00 pm EST for more business tips!