Tuesday, February 24, 2009

A word about value

Last month, my hubby and I were at a resort in Tucson, Arizona. Upon check-in, I was delighted to learn that the resort's spa was offering "recession friendly pricing". I would have paid full price for my spa treatments, but the recession friendly pricing meant that I could indulge and still remain fiscally responsible. Even though the treatments were shortened to 30-45 minutes versus the usual 55-80 minutes, I didn't mind, I just wanted the benefits. The first treatment I signed up for was a facial and for thirty minutes and $70 plus gratuity, the esthetician washed my face and applied moisturizer. I certainly did not feel like I got good value for my money, and I immdediately cancelled my other treatments. I would have sooner thrown my wallet off a bridge from a speeding car than to pay for another substandard experience.

In these economic times (I hate to use that phrase, but...), "value" is the new buzz word. When people choose to spend money on an item, especially if that item is perceived as a luxury, they want to know that they're getting value for their money.

For weeks, I've been trying to come up with some recession friendly pricing of my own. How do I cut pricing, cut services and still offer clients good value? I am the type of person who becomes very committed to my clients and end up doing too much, because I simply cannot walk away.

Those of you who took my survey (which ends tomorrow) have provided me with information that has been helpful to me in figuring out what services are important to today's engaged couples and what tradeoffs they're willing to make to get those services, and for that I thank you!

In the coming weeks I will be offering a day-of coordination special for new clients getting married in the months of May, July and November of 2009. I will post the details to my blog shortly, so check back often.

1 comment:

Margaret Holmes said...

I believe the key is to "unbundle" your offering, so your customer can make the decision about what they value. You have to be careful not to individually price each part of the experience or your customers may try to mix and match, but instead give them levels of service. Bronze, silver, gold and platinum perhaps - then if they want gold service but can't afford it, though they still want more than the silver service, you can price in between by taking out parts of the service.
It may be the gold style of wedding but a cheaper venue... or the same venue but less of something else. The trick is never to simply reduce price, always reduce value at the same time...