I read a post today on the Facebook group “EPIC Wedding & Event Pro Network” by Shanika FleurGirl Tyler, that asked “What is something you think the wedding industry lacks?” The first response was Integrity.
I do agree that the industry lacks some integrity, but this is true of any industry and in reality, the majority are honest and trustworthy.
However, I think the biggest area of “lack” is a sense of reality and I think many opportunities are missed because of it.
The media and big players push that couples are willing to spend massive amounts of money on their wedding, and while some do, it’s only a small part of the REAL market. Almost every wedding magazine pushes products that are out of reach for the average couple and too many businesses are buying into “Luxury” and “Big Ticket Spender” while ignoring the other great opportunities.
Only 16% of couples spend more than $30k on their wedding. That’s correct, 16%. This is based on over 25,000 survey samples we’ve collected in the past 3 years and includes numbers from both couples and wedding professionals.
You’re so focused on the higher-end wedding that you’re missing a huge amount of business, between $10k and $30k is 46% of the market. That’s almost half the entire market, $20-$25 billion! Think about it for a minute…
Here is a breakdown of all US wedding spending.
If you haven’t noticed, many luxury designers have created lower cost lines because they’re trying to grow their market share. Most recently, luxury designer Missoni created a line for Target. It was met with such demand that it crashed the Target website. Last night my wife and I went to Target for our weekly grocery run and ALL Missoni clothes in the store where GONE, my wife was bummed and my thinking wheels started turning.
During the recession, luxury brand Coach out performed most other luxury brands because they realized in order to grow their business they needed to create new lines at lower price points. They did, and customers love them. They are still selling higher end goods, but they are also reaching customers that couldn’t afford them before.
Creating lower price point services does not mean you are no longer a high end brand!
So what does this mean for your business and what should you do?
Two things you shouldn’t do.
- Don’t start discounting, once you start, you’ll never escape
- Don’t think you have to provide the same “package” as you do for higher paying customers
What you should do is Re-Think and Innovate.
Think about what you offer… Write it down or type it out! Think about your costs, where can you improve or cut out? Think about your processes and streamline them, automate them.
Then start creating “package/s or services” that fit into the other spending segments of the market. Just like the luxury brands, you have to Re-Think and innovate your way into capturing more of the market.