Economic Analysis of Event Planner

Economic Analysis of Event Planner

Ericka W.

ECO 561

Event Planner Business Proposal

        Enspired is small startup event planning company located in Laurinburg, North Carolina. Enspired will host any type of party needed to the customer no matter what the budget is.  Our goal is to start off small, build a customer base, and a reputation for our services, so that we can eventually expand our company.  The owner, Ericka Williams, has been in event planning field for four years and has catered over a hundred events.  Which this experience and knowledge she can pull together any event.  What makes our services so different is the ability to bring an event to life no matter what the budget is and the skill that comes with it.

Market Structure

Event planning market is a monopolistic competition.  This market is pretty easy to enter and has many competitors but all are slightly different.  With only two event planners listed for this town, it shouldn’t be difficult to dominate this market in town.  For the food and flowery businesses, Enspired will provide their services to the customer at a discounted price.  The town consists of 15,774 people. (United States Census Bureau)  

Elasticity

The elasticity of the services varies.  As stated before there are only two businesses listed for event planning services.  All the other event planning services we have found out about are not professionally owned.  That will be the difference between Enspired and competition.  We will be as professional as possible and show to our cliental that we are the best to go with. Enspired will have its own building in which most others don’t.  They just meet places and in home visits.  Event planning is a luxury in the market where the average household income is 26,235. This is a small town with not a lot of money, which makes it so much easier to provide event planner services at a decent price.  Besides with great planning skills, the people of the town will find our work services worth the price.    

Nonpricing Strategies

        We will build on our owner being a native of the town and her knowledge and skills.  Ericka Williams worked at St. Andrews University in Laurinburg, where she gained most of her catering and event planning experiences.  From working next to the catering director to being promoted to the catering director within just six months of working, she has proven to have the ability to plan any type of event.  No matter the conditions she has managed to make the best of all events.  Enspired will do in home and anywhere visits for planning and not just in office.  

Marginal Costs and Marginal Revenue

Enspired will have a website that allows customers to go on and see all vendors connected with our event planning services.  They will be able to look through all past events, different patterns and themes, ideas, etc, to figure out what they are looking for.  Our cost will be just for using our services and providing these vendors at a discounted price.  Doing so will keep our costs to a minimal.  (Covering fixed and variable costs, and payroll.)  For example, using one of our vendors for food will cost approximately $16.95 to $22.95 per person, with a minimum of 50 people.  But we will be able to get our vendors to break their contract by providing there service for those under 50 people.  Our fee for services are as follow: from 0 to 50 price is $150, 50 to 100 price is $200, 100 or more price is $300, 200 or more price is $400.