Forums: Discussions for entrepreneurs and small business.

Oh please explain Craig, what you mean...all the same in what ways?

Hi Moni,

Sorry if I got off topic, I DO think that`s a great idea.  Actually even though my Daughter did use a coordinator, the coordinator did not do the running around. That was the most difficult thing for my Daughter figuring out who would.  Right before the wedding we all went crazy doing those things, to the point of absolute exhaustion! 

Good luck!

Janie

First, recent research shows the median (not average) wedding costs more close to $15000, much lower than the numbers people used to throw around.

And since you are targeting the low end of the market (couples who cannot afford wedding planners), let`s assume the average wedding cost of your market is $5000.

How much fee do you charge? If a couple`s total budget is $5000, maybe they are willing to spend $500 to $1000 on your errand service.

Then, you need to figure out the number of wedding in the geographical area which you want to cover, and again, since you target the low end, use 20% of the total number as your potental clients. What percentage of those can you really reach? My best estimate is that you can get business from 5% of the total weddings in the area, maybe much less because of your target market.

You also have to factor in how many you can handle. If you have a full schedule and average 2 weddings per week, you will have 100 weddings per year. At $500K per client, you are only making 50K/year before expense.

http://www.projo.com/weddings/content/LB_WEDDING_SAVINGS_09- 09-07_3P6SLBK.dce612.html

To make that 50K, you would have to handle 2 clients per week average, and according to you, you are targeting the low end market, which is much tougher to crack.

I am not saying there is not a need. However, as a business person, the objective is to be profitable and make as much profit as possible.

I just think if you can get 100 clients per year from the low end market, you as well can get into the full wedding planning business, handle 20 clients per year and make 2X more.

Let me put it in another way -

You want to get into a business to run errands for people. How much do you think the errands are worth to your target market? $15/hour? $30/hour? You are not really running a business. Instead, you are your own boss for an low paying errand job. If you want to do service for people, why would you pick a "job" which pays for $20/hour instead of one for $50/hour?