Are wedding budgets increasing?…Yes! Are they increasing because people are financially doing better, not necessarily!
Just like the cost of living goes up, so does the cost of having a wedding. I recently saw a major wedding resource that said wedding businesses are doing better and forecasting better sales and profits for 2013! This is great news, right? Well, lets analyze this for a moment. Unfortunately in 2008, 09, 10, and 11, many new wedding businesses opened up because people could not find jobs. So, when a wedding business opens up most businesses increase their sales considerably each year for the first 3-5 years.
The real test is how are the businesses doing that have been around for 10+ years. In my opinion, I think the forecast looks brighter, but not as bright as some people and so-called experts are forecasting. Again, many businesses are going to see sales increase as much as 100-200% if they are less than 5 years old!
Another question to ask, are you getting what you are worth or are you doing as well as you were before 2006? I worry when people forecast such a major increase in profits in the wedding industry because the majority of businesses are small, and forecasting can make or break a business. We must look at how other industries are doing also (hospitality, real estate, service industries, etc.). How is the real estate market doing now? How are other large businesses doing in the wedding industry? How are Nationwide wedding companies doing such as weddingwire.com, Martha Stewart Weddings, David’s Bridal, Men’s Warehouse, and others who have been around longer than 5 years? Look at what kind of businesses is up and coming in the wedding and event industry.
The reason it’s important to forecast is because this allows you to budget for your business. Many signs point to an increase in the economy, but it’s slow, and it’s incredibly important to look at the businesses that are seeing increasing sales, again, how long have they been in business? Forecasting incorrectly has hurt many businesses before because the market can slow down and sales then decrease yet you have marketing obligations, orders to fill, and equipment to buy. Don’t get overjoyed by hype, instead think nice and steady.
Create a channel for the money you earn to make more money each year by investing, saving, and advertise wisely and carefully, this is where you lose the most money!