“I’ve got fifty events this year!” We’ve all heard wedding planners tout how many events they have each year, a testament to their reputations and ability to sell their services. But more events does not mean more revenue than someone who has fewer events. Booking as many events as you possibly can will lead to you working yourself to death without a lot of dollars to show for it. There is a difference between revenue and profit, and once you embrace this concept, you can make more profit.
The difference between Revenue and Profit
Gross revenue is the TOTAL AMOIUNT OF MONEY your business receives, or grosses. Profit is what you have left over after overhead and other expenses, like staff, office rent, gas, and son on and so forth. you might be saying: no kidding! I’m fully aware of this. But you must dote on this fact and make it work for you, so you can strategize a higher profit margin in your business.
How to create a strategy to make more profit
With wedding planners, it’s about what type of packages you sell, and how many. If you book thirty wedding coorinatio packages at $2000 each, per year, that’s $60k. But if you book 15 full planning at 10k a year, that’s $150,000 year and LESS events – less weekends way from your family, less clients to track, and exponentially less details to oversee and control.
The main concept here: Don’t just plan for yearly earnings as you look ahead to each new year. Plan for what types of events you want to book. Lay these out in a goal sheet. For a newer planner, establishing themselves, this goal sheet could look like:
For 2024, I want to book:
10 Wedding Coordination
10 Partial Planning
5 Full Planning
You may not nail your goals perfectly, but you’re likely to get close to it, because you’ll start marketing yourself differently and vetting your inquiries more closely. Plus, as you book more full planning gigs, you’ll find yourself raising your prices for the smaller packages as your time and reputation become more valuable.
So remember: Value Profit just as – or even more – highly than revenue, and strategize for the mix of packages that will make you the most money.