Today I wrote a blog post on WeddingAces about the new trend of wedding vendors slashing their prices to keep from going out of business. This is something that is happening more and more as the recession has continued and couples are being more careful with their money. Let’s face it – in a tough market, some businesses are going to go bankrupt. The wedding industry is no different.
When a business is in trouble, especially a small business, they will try almost anything just to stay afloat for another day. Now, these companies seem to have reached a breaking point. They’re offering deep discounts or undercutting their competitors in order to get a deposit, hoping to keep their doors open long enough to recover. The unfortunate reality is, however, that many of these vendors are going to fold, taking their clients’ deposits with them.
Ask yourself this: If a wedding vendor wasn’t in serious financial trouble, would they be offering you a huge discount? Most businesses, including those in the wedding industry, aren’t making 100%-500% profit on each wedding. Every vendor has operating costs – marketing, advertising, supplies, labor, equipment, etc. – and needs to be able to cover those costs in order to stay in business. If a company is willing to slash their rates, they’re essentially gambling on whether they’ll recover or not – and they’re gambling with your deposit.
The companies who are doing well and are on strong financial footing (like ours) are, in general, not offering discounts, or “price matching” their competitors. Just some food for thought…
You can read the WeddingAces post here. Let me know what you think!