So, I’ve heard some horror (horror=genius!) stories about people trying to make money off of their wedding. Sure, people joke about it, but I think it takes a special few to actually try it.
I read an article about this couple that registered for big expensive gifts that they did not want, simply so they could return them and get cash. And to make matters worse, they were actually discussing these plans in front of other people!
All of this got us thinking. What if there was a Return On Investment equation for your wedding? What if you could figure out a way to break even or even, *gasp*, make money on your wedding? Of course, this is really a joke (although it could be a good way to milk more money out of your hubby-to-be). We don’t want you to get the wrong message! But let’s say, just for fun, there was a way to figure it out? Read on!
Wedding ROI = (Total Gifts Value) – (Fixed Cost + Variable Costs)
or = (Total Gift Value) – (Fixed Costs + [Cost Per Guest x Number of Guests])
Let’s put this puppy into action.
Say your fixed costs are as follows:
Dress – $1,000
Groom’s Attire – $100
Venue Rental – $4,000
Ceremony Space and Fees – $500
Your variable costs depend on the number of guests you invite. Let’s say considering catering (food), bar (drink), and reception decorations (more guests = more centerpieces), the total cost per guest is $30. Your equation for variable costs is then (cost per guest) x (number of guests). Let’s say you plan on having 200 guests at $30 a head, which totals $6,000.
So far, we have:
Wedding ROI= (Total Gift Value) – (5,600 + 6,000)
= (Total Gift Value) – (11,600)
Now for the fun part. Let’s say you have the average crowd, and each guest spends about $50 to $75 dollars on a gift. Let’s say with a total of 200 people you’ll get about 125 gifts, valued at $50 each. That gives you $6,250 in gifts. Let’s say they are valued at $75 each. That means $9,375 in gifts. Finally, let’s pretend that you have a rather wealthy family and group of friends which will more likely spend about $100 to $150 on gifts for you. 125 gifts at $100 each gives you $12,500 in gifts. 125 gifts at $150 each gives you $18,750 in gifts. Nice.
So let’s plug it all in.
For 200 guests at $30 a head, 125 gifts at $50 each:
Wedding ROI = (6,250) – (5,600 + [30 x 200])
For 200 guests at $30 a head, 125 gifts at $150 each:
Wedding ROI = (18,750) – (5,600 + [30 x 200])
Now it’s your turn! Plug in your numbers and see what you get. We can’t blame you for trying it out! Remember, if your Wedding ROI equals zero, you’re breaking even. You’ll be spending the same amount that you’ll be receiving in gifts. If you get a negative number, you’re obviously loosing money. Try decreasing the guest list or lowering the amount of money you’re spending per person. If you get a positive Wedding ROI, then hurrah for you! You’re actually making a profit and you might want to consider renewing your vows every few years.
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