CSES 2015 The Wedding Marketplace: Pricing Strategies for On-premise Venues

P R I C I N G S T R A T E G I E S

F O R O N - P R E M I S E

V E N U E S

T H E W E D D I N G M A R K E T P L A C E

E X E C U T I V E V I C E P R E S I D E N T ,

C H I E F O P E R A T I N G O F F I C E R

P A V I L I O N C A T E R I N G , I N C .

M I D D L E T O W N , C O N N E C T I C U T

J O N A T H A N @ P A V I L I O N C A T E R I N G . C O M

J O N A T H A N J E N N I N G S

B E F O R E W E G E T S T A R T E D …

• Some of these ideas are bold!

• We incorporated these ideas over a number of years,

not all at once.

• I hope to at least challenge your current pricing thought

process.

• Start small. Even small steps can mean big increases

to profitability!

W H A T Y O U

W I L L L E A R N :

• Caterers have the right to

make a proper profit.

• Sometimes it’s ok to charge

more than your

competitors.

• How to set yourself above

the crowd.

• How to create new profit

centers.

Is it OK to charge more?

– M I C H A E L R O M A N

“What if you had charged $10 per guest more for

every wedding you had this year?”

Let’s say you had 26,000 guests times $10 …

$ 2 6 0 , 0 0 0 I N A D D I T I O N A L

R E V E N U EA N D I T I S A L L P R O F I T … . .

– M I C H A E L R O M A N

“What if you had charged $10 per guest more for

every wedding you had this year?”

H O W I S O N - P R E M I S E V E N U E

P R I C I N G D E T E R M I N E D ?

• Relationship to food cost. Are we selling food?

• Relationship to cost of occupancy. It’s not always

direct.

• Relationship to the market conditions. Avoid the “Race

to the Bottom”.

• Remember, we are selling a luxury item.

• On-Premise v. Off-Premise, a word of caution.

I N 2 0 0 9 W E I N T R O D U C E D T H E C O N N E C T I C U T W E D D I N G G R O U P

B R A N D

W H A T I S

C O N N E C T I C U T

W E D D I N G G R O U P ?

• A brand of Pavilion Catering, a catering

company founded by Tom McDowell in

1984.

• A result of a decision to focus on wedding

business, specifically, full price, full

service weddings of between125-225

guests in our exclusive and preferred

venues.

• A program to combine venues, catering,

design / decor and associated vendors

into one experience that we both control

and profit from.

• We say NO more than any other caterer I

know! (and it’s hard!)

T H E B A R N S A T W E S L E Y A N

H I L L SN O N - T R A D I T I O N A L V E N U E , B U I L T I N 1 8 7 2

C T W E D D I N G G R O U P

T H E B A R N S A T

W E S L E Y A N

H I L L S

• Non-Traditional Venue

• Was a dirty old barn that

nobody loved (!)

• David Tutera called the

Barns at Wesleyan Hills a

“Country Dream Venue”

• Something was created

that did not exist in the

marketplace.

O U R W E D D I N G

P A C K A G E

• 6 hours

• One wedding per day

• Premium open bar

• Stationary and passed hors

d’oeuvres

• Farm to table inspired

dinner menus

• Wedding planning and day-

of coordination

O U R W E D D I N G P A C K A G E( P R I M E S A T U R D A Y S , B A R N S A T W E S L E Y A N H I L L S )

• in 2009 we charged $89.95 per guest






• plus site rental fee of up to $7,000

F O R T H E S A M E W E D D I N G

P A C K A G E !( O K , N O T R E A L L Y , B U T C L O S E ! )

T H E P A V I L I O N O N C R Y S T A L

L A K ET R A D I T I O N A L B A N Q U E T F A C I L I T Y


T H E P A V I L I O N O N

C R Y S T A L L A K E

• A banquet facility feel

• Hosting weddings since

1984

• Sits on top of a Fraternal

Club (Polish Falcons)

• LOTS of competition

O U R W E D D I N G P A C K A G E ( P R I M E S A T U R D A Y S , P A V I L I O N O N C R Y S T A L

L A K E )







F O R T H E S A M E W E D D I N G

P A C K A G E !( O K , N O T R E A L L Y , B U T C L O S E ! )

H O W ?

B U T T H E B I G G E S T

R E A S O N I S T H A T W E

A S K E D !

( A N D S A I D “ N O ” A L O T ! )

T H E R E A R E M A N Y R E A S O N S … . .

C U S T O M E R S W I L L

L E T Y O U K N O W

W H E N Y O U R P R I C E

I S T O O H I G H … T H E Y

W I L L S T O P B U Y I N G !

B U T B E C A R E F U L … . .

U S E T H E C A L E N D A R , N O T T H E Q U A L I T Y

• Many on-premise venues in our market use quality to determine price.

• The package “A”, Package “B”, Package “C” approach.

• This often leads to a “C” package being sold on an “A” date

• “A” dates are GOLD. We only sell “A” dates at “A” prices. If you want a “B” or a

“C” price, you will have to book a “B” or a “C” date.

• Frequently, clients who love the venue but can’t afford peak pricing will book

non peak dates, helping us keep our calendar full.

• We want to preserve “A” dates for clients with “A” budgets, BUT clients get “A”

quality even on a “B” or even a “C” date. Why is is this important?

• Who is my client REALLY?

U S E T H E C A L E N D A R , N O T T H E Q U A L I T Y

• Start with dates you know you can sell short term if you have to.

• My highest priced dates are currently autumn 2017. If you want to book these

dates NOW, you are going to pay MY price.

• Prime Saturdays are gold to on premise venues - they should be priced that

way.

• Saturday pricing has helped push prices up on Fridays and Sundays also.

• You can always lower the price later if you need to (by the way, how many times

do you RAISE your prices each season?).

• Nothing makes $149 look reasonable faster than comparing it to $169!

• The “$199 date!”

A D I F F E R E N T

S A L E S

A P P R O A C H

• Teach your salespeople to

sell the experience and the

benefits, not the price.

• Are your salespeople “afraid”

of your price? (ours were!)

• Learn to stop using price

reductions and give-aways

as a closing tool.

• May result in a modification

to sales compensation.

O U R W E D D I N G

P A C K A G E

• 6 hours

• One wedding per day

• Premium open bar

• Stationary and passed hors

d’oeuvres

• Farm to table inspired

dinner menus

• Wedding planning and day

of coordination

I T H O U G H T T H A T T O O !B U T J O N A T H A N , M Y C L I E N T S W A N T T O C U S T O M I Z E … . .

• “Can I take the bar out of your package? I just want a cash bar.”

• “But not everyone drinks. Can I only pay for the bar for half of my guests?”

• “What if we only offer half the hors d’oeuvres? I don't care if we run out.”

• “I just want heavy hors d’oeuvres and stations because that is cheaper,

right?”

• “I want family style because then you only need half the staff.”

• “Can’t you just waive the service charge?”

• “I don’t care if my guests have to wait for 90 minutes without food while I

take photos, its MY wedding!”

S O R R Y , B U T N O !

I H A V E T O T A K E C A R E O F M Y C L I E N T W H I L E

R E M E M B E R I N G M Y A U D I E N C E

W E D O M O D I F Y O U R P A C K A G E , B U T O N L Y F O R S T Y L E

O R V I S I O N R E A S O N S , N O T T O L O W E R T H E P R I C E .

H O W M U C H D O E S A 2 0 1 5 W E D D I N G

C O S T A N Y W A Y ?

• $69.95 per guest?











W E H A V E S O L D O U R

W E D D I N G P A C K A G E

A T E A C H O F T H E S E

P R I C E P O I N T S

D U R I N G T H E 2 0 1 5

S E A S O N !

T H E S E A R E A L L C O R R E C T !

H O W A R E P R I C E S

D E T E R M I N E D ?

• Determine your starting point.

What is the lowest Gross Profit

you are willing to accept? That’s

your base price. April Sundays,

off season, last minute booking.

• Increase pricing systematically

from the base price.

• Start early, use time to your

advantage.

• Don’t be afraid to aim high!

(especially on Prime Dates)

D O N ’ T S E T A N D F O R G E T !

• Monitor pricing and the marketplace frequently. (we

discuss monthly and sometimes weekly)

• Don’t hesitate to make adjustments.

• We adjust our pricing several times per year. (UP and

DOWN)

• Listen to your salespeople. Sit in sales meetings and

ask about objections.

A N D S P E A K I N G O F S A L E S P E O P L E … .

• Salespeople need to be re-trained not to use price as

their only/best closing strategy. (This can make it

challenging for us to hire salespeople)

• Salespeople will work harder to bring in the book of

business. But, it will be better business.

• You need to train your salespeople how to sell when

you are the most expensive option.

I K N O W W H A T Y O U A R E

T H I N K I N G !( O R A T L E A S T W H A T I T H O U G H T ! )

T H I S C A N T P O S S I B L Y W O R K I N M Y M A R K E T

• My competitors all charge a lower price.

• My clients all expect a “deal” when they book.

• Clients won’t pay a higher price for my venue.

• I am unwilling/unable to say “no” to any business.

B U T I T H A S W O R K E D F O R U S !

We had all of these same objections …

S E T T I N G

Y O U R S E L F A P A R T

F R O M T H E C R O W D

• Study the marketplace and develop

menus that set yourself apart from

the crowd.

• We write seasonal menus and

utilize local ingredients to help our

menus stand out.

• We source our proteins from

traditional purveyors but just about

everything else is local.

• Clients frequently tell us that our

menus are a big reason they

choose to spend more with us.

D E S I G N I N G T H E “ U N - B A N Q U E T ” B A N Q U E T M E N U

S E T T I N G Y O U R S E L F A P A R T


S P O N S O R E D F A R M

• We grow some of our food

through a sponsorship with

a local charity farm.

• For each pound of food we

harvest for our clients, we

donate one pound of food to

feed hungry families in our

community.

• Clients and staff are loving

the energy of this program.

L E S S I S

M O R E ?• In the past we offered our clients a choice of

5 passed hors d’oeuvres from a list of about

40.

• Our kitchen would produce between 25-30

different varieties of hand-made selections

per weekend.

• Now we serve each client 10 varieties of

seasonal passed hors d’oeuvres that we

select.

• Our clients get double the variety and we

save kitchen labor. (we are making 10

selections instead of 30!)

• Every wedding gets the same 10 selections!

• With the exception of allergies, we are

almost never asked to customize.

• We have also standardized starches and

vegetables, again with great success.

B U T C L I E N T S M U S T B E A B L E T O

C U S T O M I Z E T H E I R M E N U S !

R I G H T ?

M O S T O F T H E S U B S T I T U T I O N S W E D O S E E A R E

A L L E R G Y O R I N T O L E R A N C E R E L A T E D

95% of our clients purchase and are happy with our

standard menus

R E V I E W S A R E

E V E R Y T H I N G !

• This generation of Brides

relies heavily on reviews to

make buying decisions.

• Go out of your way to collect 5

star reviews and win awards.

• Build a brand and establish

yourself as the expert.

• Shamelessly self promote! (If

you don’t do it, no one else

will!)

• Invest the time in trying to win

national awards.

• If you don’t have local awards,

create them! We did!

• Invest in education and

professional development for

your staff and SELL that you

do!

• Become the expert and then

SELL that you are.

Why can’t everyday be a Saturday in September?

C R E A T I N G N E W

P R O F I T

C E N T E R S

• You can’t make more prime

dates, but you can make

prime dates (and all dates)

more profitable!

• What are your clients

sourcing organically? That’s

what you want to start with.

• Be the complete wedding

resource.

D E S I G N & D E C O R

• Create “must have” items.

• From the very start we sell

“which one” and not “if”.

• 90% of our clients buy

decor.

• Always be working on the

“next big idea”.

D E S I G N & D E C O R

• CT Wedding Group

branded.

• Outsourced to a vendor

partner.

• Very profitable, especially

with repeated looks.

• “What’s your favorite look

in the venue?”

O U R “ P A C K A G E ” I S J U S T

T H E B E G I N N I N G

• Design and Decor

• Ceremony decor, welcoming

stations, upgraded seating

• Lawn games and outdoor

furniture

• Cocktail hour stations

• Dessert experiences

• Late night snacks

• Vendor partnerships

S E L L I N G N E W P R O F I T

C E N T E R S

O U R W E D D I N G P L A N N I N G

T R A C K

• Reaching out to the Couple early in the

planning process, just weeks after they

book.

• A series of emails and calls over the

course of 12-18 months, designed to keep

in front of the planning process,

presenting our vendors and resources

before the Couple searches on their own.

• Results in the best wedding experiences

because the best vendors are consistently

used.

• Surveys and reviews suggest this is a

significant selling point. Our reputation is

that we “outdo” other companies.

O U R W E D D I N G

P L A N N I N G T R A C K

H A S …

• Increased our upsell revenue

dramatically.

• Given our clients a much closer

relationship with our planners.

• Identified issues and problems

much earlier in the planing process

so that they can be resolved.

• Showed up in reviews as a huge

positive.

• Is used as a sales tool to justify

higher prices.

V E N D O R P A R T N E R S H I P S

• Looking at the “Big Picture”.

• Our “event team” includes the entertainer, florist, photographer, photo booth,

videographer, shuttle, hotel, rehearsal dinner. We profit from almost all of these

relationships.

• We offer multiple choices within each category. Having different visions

increases the total percentage of our clients who (happily) stay within our

system. This is very different than having a “preferred vendor list”.

• The key is building relationships and trust with vendors.

• Not all vendors will be receptive.

• Mike Tyson said that you find out who your friends really are when all the

money’s gone! (and it’s true!)

V E N D O R P A R T N E R S H I P SB E N E F I T S F O R Y O U

• Your book of business has value.

• Stop “giving it away”.

• It’s ok to make money. (it really is!)

• Control who is coming through your door..

• Better events happen when the “event team” is all on

the same page.

V E N D O R P A R T N E R S H I P SB E N E F I T S F O R Y O U R C L I E N T S

• Your clients have a network of high quality vendors at

their fingertips.

• You become the “wedding resource”.

• Sell synergy.

• Attract clients interested in “destination” style

weddings.

T O W R A P I T U P

• Consider pricing in a new way.

• Start small. Remember, even

small steps can make a big

difference in the bottom line.

• Set yourself apart from the

crowd.

• Create ways to make your

existing book of business more

profitable. Remember, if you

don’t offer it, they can’t buy it!

T H A N K Y O U !

P R I C I N G S T R A T E G I E S

F O R O N - P R E M I S E

V E N U E S

T H E W E D D I N G M A R K E T P L A C E

CSES 2015 The Wedding Marketplace: Pricing Strategies for On-premise Venues

Marketing

Transcript of CSES 2015 The Wedding Marketplace: Pricing Strategies for On-premise Venues