Where Your Business is vs. Where You Want it to be
In the title of this post, I am not necessarily talking about “is your business successful”, but more along the lines of, “are you happy with your business… the what you deliver, the how you deliver it, and the how much money you make.” There was this concept talked about in business school called the retail curve, and it showed that the way to make the most money was to either focus on high volume/low-cost or low volume/high-cost and that those businesses that tried to sit in the middle usually made less money and/or had more trouble making money. And, although the curve was discussed in the context of the retail industry, I think the overall concept is still valid and can be applicable to the wedding industry, especially when talking about contemplating large changes in how you do business and/or large changes in your pricing.
If you are happy with your business, and the money you make per couple, then maybe your only question is, “how do I get more couples”, which is a question of market size and marketing. However, if you want to make more money, or you want to deliver your product/service at a different level, then you are talking about moving up or down on the retail curve, and thus you need to factor in not only where your business currently is on the curve, but where you want it to go and what are the implications of moving.
Some implication examples:
If you want to move to the fewer couples and more profit per couple side, the positive is that you get to focus more on each couple and deliver a higher level of product/service. On the negative side, the loss or cancellation of any booking has a much bigger effect, and the expectations of the couples are greater, and thus small issues can be seen as, or quickly, become big issues (the couple pays more and thus is more likely going to have higher expectations). On the more couples, less profit per couple side of the curve, the positives are that each lost booking has less effect and, you can create a customer journey that is much more automated, requiring less time to do the “boring” admin stuff (their expectations for touch-points should be less). On the negative side, servicing more couples could require more staffing to manage the volume, and the focus is more on getting the volume vs. delivering a higher level of product/service.
Nowhere on the curve is “wrong”, even the middle, as long as you are happy with your business. The point is to understand that if you want to shift where you are on the curve, it is more than just adjusting your price, or looking at it from the other direction, adjusting your price may shift where you are on the curve requiring you, to change your business to assure success. If you are contemplating a large change to your pricing, or a large change to how you do business, and want help working through it, please do not hesitate to contact me at firstname.lastname@example.org.