One of the most lucrative and profitable businesses that most people know about are weddings. With the average wedding costing nearly $35,000, it’s no wonder that so many new businesses want to venture into this money-making venture.
But how much money do wedding venues make a year?
How Much Does A Wedding Cost?
The average cost of a wedding in the United States has been estimated at $32,851 per couple. This includes everything from the ceremony to the reception, decorations, catering, flowers, entertainment, etc.
Of course, these numbers vary depending on who you ask, but they’re still pretty close to accurate.
Are Wedding Venues Profitable?
So the million-dollar question you are wondering: do wedding venues turn a profit hosting weddings throughout the year? The answer is yes! Some wedding venues even earn more than our average wedding spending costs in one single day.
For example, if you have a wedding on a Saturday, your venue could potentially make as much as $20,000 from just one event. That’s an extra $10,000 for them to keep instead of paying rent or other expenses.
Wedding Venues Make Money From More Than Just Weddings
While a wedding may be the main source of income for a wedding venue, there are plenty of other ways they can make money. For instance, a wedding venue might offer discounts to couples who book their venue months ahead of time.
Or, they might charge more for bigger events like birthday parties or corporate events.
There are also things you should know before booking a wedding venue. For example, if you plan on having a rehearsal dinner, you’ll need to factor in additional food costs. You should also consider whether you will need to hire outside caterers or vendors.
If you choose to go with a local vendor, they may not be able to provide all of the services you want.
When Are Wedding Venues Not Profitable?
Of course, not every wedding venue makes money hosting weddings. Some venues only host weddings during certain times of the year, such as springtime or winter holidays.
Others don’t take reservations until well after the date of the wedding, which means you won’t get any advance notice about availability. And others simply aren’t equipped to handle large groups of people.
Four Reasons Wedding Venues Fail To Turn A Profit
If you want to ensure a wedding venue turns a profit, here are four reasons why they don’t:
1) They Don’t Have Enough Events
It takes a lot of work to host enough events to cover the costs associated with running a business. For example, a wedding venue needs to pay for staff, office space, utilities, insurance, marketing, advertising, and any other necessary expenses.
So if they only have 20 events booked each month, then they won’t be making enough money to cover those expenses.
2) They Are Too Expensive
One of the biggest mistakes people make when planning their wedding is choosing a venue that is too expensive. While it’s true that a high-end venue will likely require higher fees, there are plenty of affordable options out there. And if you decide to get married somewhere less expensive, you’ll be saving yourself thousands of dollars.
3) They Aren’t Getting Enough Guests
Another reason why wedding venues fail to turn a profit is that they aren’t getting enough guests. When you look at the average wedding spending budget, you’ll see that most couples spend about half of what they expect to spend.
But if you’re looking at a venue that charges over $500 per person, you may find that you’re spending way more than you thought you would.
4) They Aren’t Charging Enough
The final reason why wedding venues fail is that they simply aren’t charging enough. Some venues may try to convince you that they are worth every penny, but this isn’t always the case.
If you compare prices across different venues, you’ll notice that many cheaper ones often cost less than half of what the pricier ones do.
So while wedding venues may seem like a great idea at first, they aren’t profitable unless they are charging enough.
Tips To Finding The Right Wedding Venue And Save Money
If you find yourself planning a wedding without knowing what kind of financial situation you’ll be in when it comes to hiring a wedding venue, here are some tips to help you save money while still finding the perfect venue for your big day.
1) Find out what type of wedding venue you want first. There are several different types of wedding venues available. They range from churches to hotels to private homes. Each type offers its own unique set of benefits, including price, location, ease of use, and amenities.
2) Choose a venue based on what fits your needs best. While everyone wants to save money on their wedding, sometimes that means sacrificing quality. So be sure to choose a venue that meets your needs, rather than going for the cheapest option.
3) Ask around for recommendations. It’s always better to hear what other brides and grooms had to say about a particular venue before making a decision. After all, you don’t want to spend thousands of dollars on a venue only to realize later that it wasn’t worth it.
4) Look into getting married in a church. Churches tend to be less expensive than most wedding venues. Plus, you can often reserve a specific date and time for your ceremony.
5) Consider using a wedding planner. A wedding planner can help you organize everything from the guest list to the reception menu. They can also help you decide where to hold your ceremony and reception.
6) Hire a professional photographer. Professional photographers can capture memories that last a lifetime. But they might be more expensive. To cut down on costs, look for photographers who specialize in weddings.
7) Do your research. Before choosing a wedding venue, it’s important to understand exactly how much work is involved in running the event. This includes figuring out what kind of staff they have, how many rooms they have, and how easy it would be to book the space.
8) Make sure the venue has enough parking. Parking at a wedding venue can cost extra. However, if there isn’t enough parking, guests might end up circling the block looking for spots.
9) Check if the venue provides catering. Many wedding venues offer catering options, but not all do. Some charge extra for this service. If you’re thinking of serving your own food instead, keep in mind that you will likely need to pay more for caterers.
While wedding venues can be costly, they don’t have to break the bank. You just need to know which ones fit your budget and needs best. Once you’ve found the right venue, you can start saving money by following these tips.