How to PROFIT From Your Wedding!
July 26, 2007 by Katie
Filed under Just For Fun/Humor
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!
Technically, guests don’t need to give gifts. Today’s customs, however, imply that if you receive an invitation to a wedding, you should send a gift. Tip from WeddingFanatic: If you hardly know these people, and they hardly know you, yet you’re invited to their wedding (which you have no intention of attending) don’t send a gift. Clearly, you’re not close to the couple and the invitation is more of an invite for a gift.
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…
You have your fixed costs, or the money you’ll be spending no matter how many people you have at your wedding. Then you have your variable costs, which are costs that will rise or fall depending on the number of guests you have, and how much money you spend on each one. We must not forget the value of your guests! And, by value of your guests we mean how much money they’ll give you or the dollar value of their gift. So we get something that looks like this:
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
Total: $5,600
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])
= -$5,350
For 200 guests at $30 a head, 125 gifts at $150 each:
Wedding ROI = (18,750) – (5,600 + [30 x 200])
= +$7,150
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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MarriageMoney on Thu, 26th Jul 2007 4:52 pm
When my wife and I got married, we were very up-front with our guests.
We didn’t register for gifts anywhere, and explained to our guests that a gift was not expected or required, but that if they wanted to give us a gift, cash is most appreciated.
The fact is that we already had most of the “traditional wedding gift” stuff … blenders, toasters, place settings, etc… What we really wanted was two things … a honeymoon and a house.
Well, the plan worked. Nobody was offended … and if they were they never expressed it to us (and if they were privately offended … they’ll get over it). The wedding paid for itself AND our honeymoon (plus a little extra). This left our own savings in tact for a down payment on a condo.
While we still did get a few ‘wrapped’ gifts, most people simply just dropped an envelope in our basket. Frankly, I think many people appreciated the simplicity since they didn’t have to go hunt for a gift or even bother looking up items in a registry.
john on Thu, 26th Jul 2007 5:13 pm
how does one loose money?
Kibby on Thu, 26th Jul 2007 5:19 pm
John- Gimme a dollar and I’ll show you how it can be lost.
Katie on Thu, 26th Jul 2007 5:31 pm
MarriageMoney,
I like it! It does make sense, especially if you’re getting married a little older. Why would you want a new quesadilla maker when you could take a trip to Europe with your new spouse or get that new place (in your case both!)?
CommonCourtesy on Thu, 26th Jul 2007 5:45 pm
“I think many people appreciated the simplicity…”MarriageMoney
Don’t kid yourself MM. You likely made it more difficult for your guests in a way by forcing them to come out of pocket for more money they likely would have spent on a gift for fear of looking too cheap.
You very likely annoyed a large percentage of your guests, though likely none of them will ever complain about it.
Katie on Thu, 26th Jul 2007 5:54 pm
Good point. It’s a bit of a catch 22. You don’t want tons of junk but at the same time it’s gotta feel a little tacky saying “We just want money.”
Isn’t that what you say when you’re 14 and your Grandma calls and asks what you want for Christmas?
MarriageMoney on Thu, 26th Jul 2007 6:59 pm
Katie,
You’re right about it being a touchy subject. We approached it somewhat delicately, and included a little note in our invites that explained our decision. We were also careful to point out that gift giving was neither required or expected, but that if you’re gonna anyway …. I wish I had the note to refer to, my wife wrote it and it was very cleverly worded.
Since the only people we invited to the wedding were close friends and family, they understood who we were and why we would make such a request.
They were all very generous, and I doubt anybody gave more in cash than they would have spent on something like a bone china soup tureen that will sit in a cupboard for 364 days of the year.