Have you ever heard the saying:
“You get what you pay for.”?
Of course you have… this popular statement is a simple way to convey the relationship between price and quality. The “theory of value” tries to explain why goods and services are priced as they are, how the value of goods and services comes about, and how to calculate the correct price of goods and services.
If a service is found to be the cheapest, it must be poor quality… right? Well, its not always that simple. Some people think that the price of goods and services is not a function of opinion – while others believe value is more about satisfying one’s wants/needs and it must be in limited supply. Either way, value is the worth of a good or service as determined by the market.
Know Your Budget
You should start you event planning with a good grasp on what your budget is and what items are most important to make your event a success. Event budgets can vary greatly, from $500 to $50,000. For weddings, there are tons for guides that will help you assign an amount to spend on the big items… like flowers, cake and entertainment.
Here is a basic breakdown of what you can expect to pay:
- Reception: 48%-50%
- Ceremony: 2%-3%
- Attire: 8%-10%
- Flowers: 8%-10%
- Entertainment/Music: 8%-10%
- Photography/Videography: 10%-12%
- Stationery: 2%-3%
- Wedding Rings: 2%-3%
- Parking/Transportation: 2%-3%
- Gifts: 2%-3%
- Miscellaneous: 8%
If you budget is $5,000 total… they you should look to spend anywhere from $400 to $500 on your entertainment aka DJ. In this same scenario you will only have $100 to $150 to spend on wedding rings. As you work through your budget and assigning the amounts that you will be able to spend on specific items. If you find that your budget and the suggested percentages don’t lineup with your wants, you may have to figure out ways to spend less on items that are not as important.
Warning: Make sure you re-work your budget and spend based on what you think is most important… don’t spend a penny until you know how much you are going to spend on each item. Otherwise, you will run out of money and still have important items left to buy/hire.