Financial Decision Making for Wedding Event: Report and Analysis

This report provides a comprehensive analysis of financial decision-making in the context of a wedding event. It explores various pricing strategies, including price skimming, market penetration, and premium pricing, and recommends the cost-plus pricing method for its benefits to both the customer and the company. The report highlights the importance of considering expenses, profit margins, and customer budgets when determining pricing. Furthermore, it suggests debt financing as the most appropriate source of funds and identifies the income stream as the revenue generated from customer charges. The report concludes by emphasizing the effectiveness of the cost-plus pricing strategy and the tools used in determining the event's price.

Financial Decision Making

INTRODUCTION
A. Pricing of the event with a description of the different
pricing strategies
• The pricing of the wedding event can be decided by using different pricing
strategies .some strategies explained below:-
• Price skimming
• Pricing for Market penetration
• Cost plus pricing
• Premium pricing strategy

Price skimming- which says setting the prices high of new
products and services which help in maximising the sales
with higher profits.
Pricing for Market penetration- it aims to attract more
buyers by keeping the prices low.
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Premium pricing strategy- this says charging higher prices for new product having
distinctive competitive advantage and the price is charged higher than its
competitors price.
The company should adopt the cost plus pricing method as it is beneficial for both
the customer and for the company as by using this method they can earn a good
amount of profit by providing quality services.
The tools which are to be used in the pricing of the wedding event is expenses
related to all the functions., Profit margin, budget of the customers. These all are the
key tools which are to be considered by the company to evaluate the best pricing
strategy.
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Cost plus pricing-
the event organises on the basis of cost plus pricing method which says that
actual cost of product plus a profit margin added to the cost would be the
price of the product.
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• The debt financing would be the most appropriate source of fund
• The source of income is the amount charged from the customers as
price of the complete event
• company is adopting the cost plus pricing strategy
B. Recommendation of most appropriate source of finance, relevant
income streams and pricing strategies

CONCLUSION
• From the above report, it can be concluded that the wedding event has
holding cost plus pricing strategy which help event mangers to work in
given amount by earning good amount of profit and the tools which
help event company to determine the price of the above event.