Businesses Wonder if Weddings Can get them Even After a Disappointing Prom

Posted on May 21, 2012 Written by 2 Comments

 

By Paul Pannone

With promise of better days by the Republican candidate if he’s elected in November and a– turnaround?– hinted by the Obama administration, parents of prom kids are spending more this season. The cost of attending a prom rose this year according to a survey released by Visa but that hasn’t stopped parents from finding (more) money to make sure their kids take part in the right of passage called proms.

 

Hopefully fall 2012 and spring 2013 wedding business can boost the flat sale of prom dresses for manufacturers. So far all indicators say the dress business is down the drain.

 

But you won’t convince bridal dress makers of the news, as many report less than enthusiastic sales. A recent survey by Bridal Guide said the cost of a gown– the lowest price– was the number on reason directing the purchase. According to a statement from Bridal Guide:

“The new survey indicates that consumers shop at more than one store because they are looking for the best possible PRICE.”

Currently there are no facts to support what is driving the sale of prom dresses; either up or down. But a search through the Internet shows many creative ways that prom dresses are being re-used. Lump the information with the endless sea of websites pirating products and selling direct to consumers and there’s little wonder why sales are stagnant.

Overall traditional events continue to decline, as a greater number of small businesses enter the shrinking market.

 

 

 

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Filed Under: Anti Fairy Dust, bridal, Bridal Dresses, Bridal Shops, Data, Economic news, General News, Ongoing Story Investigation, Proms, retail, Wedding Dresses, wedding industry, wedding websites Tagged: , , , , ,

The Week of April 16th in Review

Posted on April 21, 2012 Written by Leave a Comment

 

By Paul Pannone

The wedding business says they’re still tying to digest the Brides magazine makeover at Conde’ Nast. Pros and cons of the magazine haven’t been able to give a true read of whether the changes are able to lift sagging sales at the newsstand.

eWNz readers watch, as polls strongly suggest support for American made products, while all is forgotten at checkout counters in retail stores. eWedNewz continues to look at why Americans want one thing but do the opposite when it comes time to support what they want.

Along the same lines prom spending rises, led by families that can least afford it. The jump in spending is welcomed by retailers but most say the added profits goes towards offsetting the higher cost of operations.

The fight against online piracy slowed a bit, as Steve Lang travels to his factories in China. While away the crooks will play; Lang’s company, Mon Cheri, was the victim of thievery.

Demand created for The Situation tuxedo results in interest and rental of tuxedos under the brand. eWedNewz is watching what competitors are doing to combat the loss of business while FLOW ramps up all its lines– including the Situation– for the 2013 season.

 

 

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Filed Under: Advertising and Marketing, bridal, Bridal Dresses, Bridal Magazines, Bridal Shops, Calvin Klein, Celebrity, Current Events, Economic news, eWedNewz, General News, Men's formal wear, Ongoing Story Coverage, Ongoing Story Investigation, Poll, Promotions, Proms, Publications, Ralph Lauren, Research, retail, Social Media, The Groom, The Internet, The Week in Review, tuxedos, Wedding Dresses, wedding industry, wedding websites Tagged: , , , , , , , , , ,

The Price of Proms Rise but Profits Remain Stagnant

Posted on April 18, 2012 Written by 5 Comments

 

By Paul Pannone

The cost of nearly everything continues to rise and depending where you live it rises faster and more definitely than other parts of the country. eWedNewz discussions with store owners shows that even though prices are rising profits are not. Many say the increases are just about covering costs they’re experiencing from higher working expenses and energy prices.

Spending is up for rite of passage events, especially for families barely above the poverty level. The money is coming from somewhere.

 

 

A survey released by VISA shows some encouraging– or discouraging– news for the economy, depending on your point of view. The survey says spending is up by 33% but the greatest increase comes from the lowest income group.

According to the Visa survey, families in the Midwest spend less on the prom with an average cost of nearly $700. The survey shows Northeastern families spend over twice as much with an average cost of nearly $2,000. The average American family with teenagers plans to spend $1,078  — that’s for each child — on the prom, a 33.6 percent increase over the $807 spent last year.

The Visa survey finds that families in the lower-income brackets, less than $50,000, plan to spend even more — $1,307 per child. And those in the very lowest bracket, under $20,000, plan to spend $1,200 — more than 6 percent of their annual income. The dubious part of the survey says families earning between $20,000 and $30,000 plan to spend an average of $2,635, which would represent almost 9 percent of annual income for those making $30,000. Those families are just above the federal poverty level, which is $23,050 for a family of four.

The encouraging part is spending is up at all. eWedNewz discussions with apparel store owners, limousine companies and other prom associated businesses say there’s less discounting than ever this year. Nearly all agree the worst companies were forced to fold since the 2008 economic collapse. Those that remained were the strongest and most business-minded that understand there has to be a profit for all the hard work that goes into entrepreneurship. Yet most store owners say any other profit generated by price increases are quickly eroded by rapidly rising costs, leaving no net gain.

Store owners say they’ve not seen this kind of spending in over four years and with new innovation in fashion, kids are searching for the newest styles no matter what the cost is. Stores also told eWedNewz struggling parents would rather let their teenagers have what they want for rite of passage events instead of upgrading their iPhone.

Better Tuxedo store owners say they’re able to boost net margins by renting recognized brands including Calvin Klein and Ralph Lauren. This season innovation and the addition of The Situation products is helping to boost profits.

 

 

 

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Filed Under: Anti Fairy Dust, Bridal Shops, Current Events, facts and figures, General News, Proms, retail, tuxedos Tagged: , , , , , , , , , , ,

The Situation Brand Continues to Grow

Posted on March 15, 2012 Written by 1 Comment

 

By Paul Pannone

This month the Situation marketing team unveiled further plans to promote their products, cross-marketing with licensing partners while creating better value for all its participants. eWedNewz watches as the team devises new ways where products and partners work together and build a better overall brand. We also notice a way where tips, thoughts and some fun are added through a new segment to their strategy called Sitch News.

 

Business is booming at the Situation company. Marketing man, Mike Sussman (far right) , enjoying some family time at a company board meeting.

 

eWedNewz has watched the growth and reported the newZ last October. In an eWedNewz story we successfully called the business end of the Situation is nothing short of brilliant. The company continues to add new partners, leveraging their growing base of followers and friends via social networks.

eWedNewz has learned of a promotion that ties in products for a prom theme with prize giveaways to include eye-wear, a dress and the Sitch’s own line of tuxedos made by their formal wear partner, FLOW.

Marketing man, Michael Sussman of the Situation company told eWedNewz, “We are simply having the fans post their prom plans on Facebook and tagging Flow Formal. On Fridays we will select a winner and give them the choice of which tuxedo they want, free of charge.  For example, the Asbury in black or the Avalon in white.”

Likes resulting on both the Situation and FLOW pages are increasing because people want to be a part of the promotion, not because they have to. Since launching the Situation tuxedo line last August, demand for the front-running product– the Avalon– has far outpaced the ability to meet the demand. Currently steps in work to increase production for the 2013 season are being worked on.

From observation Situation marketing is not concocted in some stuffy corporate boardroom environment; but rather it develops naturally at the behest of its audience. What makes the strategy successful is providing the company’s growing base of supporters what they want, when they want it; a theme we’ve been talking about since the 1990′s in tuxedos. Finally FLOW went out and did it for the tuxedo business.

 

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Filed Under: Anti Fairy Dust, Celebrity, eWedNewz, General News, Ongoing Story Investigation, Paul Pannone, Promotions, retail, Social Media, The Internet, Uncategorized, wedding websites Tagged: , , , , , , , , , ,

Slow to React, Tux Stores Miss out on a great Marketing Situation

Posted on February 15, 2012 Written by 2 Comments

By Paul Pannone

The announcement about sold out Situation Tuxedo products in January sent store owners that did not react fast enough into a panic. Concerned calls to salespeople wanted to know if they will be able to raise stock position during season to meet the growing demand for Situation products, especially the hottest new coat, the Avalon.

Demand for all Situation products continues to grow, as we approach peak time. Millions of Facebook Fans and Twitter followers of the Situation are already aware there is a tuxedo product and expect to find whatever they want when they’re ready for it. For many, this is true; for others, it’s not.

Some are calling the Situation marketing campaign the biggest thing to happen to tuxedos in decades; creating demand that outpace products ordered, sold and made from a lagging tuxedo industry. Reaction of stores that under-bought say they are taking steps to insure they’re ready, knowing they will sell out. Many formed associations with wholesalers– places where tuxedo stores rent from– to make sure they’re covered for season. For everyone, plans to not discount are in place; some stores are charging a premium.

According to sources near the story, locations of where to find products are getting personal attention to make sure consumers get the real product and not imitations. Plans for more traditional marketing are on hold in favor of the growing success online.

Stores that bought sufficient amounts of product are part of a marketing campaign connecting consumers with how to find what they’re looking for. The program gets set to roll out in time for the season; tweeting out information of who is carrying Situation tuxedo products in their area. Sources familiar with the story say the power of Social networking drives the entire program.

 

Stores that didn’t get on board with the Situation got shut out of the Social Networking marketing driving the campaign.

 

eWedNewz will bring you the announcement by FLOW Formal, as full details become available.

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A Sluggish May and June Reported

Posted on June 1, 2011 Written by 1 Comment

By Paul Pannone

May and June wedding activity reports say volume is down this season, as wedding plans shift to the fall months. Traditional weddings that occur in June still pay a premium but the shift away from late spring and summer months leaves many couples with more choices and the opportunity to bargain down prices for better value.

Discussions with wedding vendors do not wish to admit they’re ready to bargain but many caterers say they’d rather book their rooms early than be left stranded with an empty time slot. “We’re happy to shave a few dollars off the price but we’d rather throw in added items,” some told eWNz.

Limousine use for both proms and weddings is way off this season, as parents are unable to afford the luxury. Dress sales are also down, along with flowers and tuxedo rentals.

How is your wedding business so far this season? Please comment here or contact us at Paul@ewednewz.com or 516-312-0090

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Filed Under: Bridal Dresses, Bridal Shops, catering, Florists, General News, Men's formal wear, Uncategorized, wedding industry Tagged: , , , ,

Limo Business Still Not Liquid in Peak Time

Posted on May 24, 2011 Written by 1 Comment

 

By Paul Pannone

Discouraging news continues in the transportation business, specifically, limousines. eWedNewz reported the limousine business is evaporating but there was hope peak season demand could boost revenue along with the demand.

After over a year of efforts, the President of the National Limousine Association, Diane Forgy issued the following statement to eWedNewz saying:

“In general, the bulk of the limousine industry is made up primarily of 1-5 car operators, most of who rely on night and weekend business, especially wedding business.  Most of these operators have stretch limousines in their fleet. 

In general the use of traditional stretch limousines has declined in recent years, most definitely in the business community but even in general amongst the public. And the average hourly rental has probably declined as well. I am sure this has affected a number of small operators. Pricing has plummeted as operators large and small try to keep their limousines busy and out on the streets. Dropping prices is not a marketing strategy though and yes, that has hurt our industry.  There are always exceptions and unique market situations, but in general as budgets have tightened, the use of limousines has declined.

In most cases transportation is a relatively easy expense to either eliminate or pare down in a wedding budget. However one trend that has become more consistent especially on larger weddings is the use of the “people mover” vehicles such as mini buses & trolleys to shuttle the entire wedding party along with the bride and groom. A step up from that might be a “limousine coach” that may hold 12-20+ passengers. There are of course the “mega” limousine often times converted on an SUV chassis that may also be used for 12-20 passengers. So when some type of transportation is needed for logistics or the wedding party wants to be together, have champagne and enjoys time together as a group, some sort of “people mover” is a great and practical option.

Even the use of a luxury sedan for the bride and groom in lieu of a limousine is more commonplace if they want some time alone both after the ceremony and possibly after the reception to their hotel. 

The days of all day limousine rentals, sometimes multiple limousines for weddings are all but gone. Many limousine operators have diversified their fleets in the last several years to offer more choices for all of their clients, and this has definitely contributed to the change in vehicle options used at weddings.

Limousines are still a popular choice for 2 or 3 couples going out for a special occasion, concert, etc. They don’t want to drink and drive and they want to be together in a comfortable vehicle. The noticeable trend in most wedding markets is the use of shuttle buses and if the budget allows, luxury coaches and trolleys. On a per person basis, they are very affordable and fun.”

Nowhere in Forgy’s statement is the rising cost of gasoline cited as one of the main reasons for profit margin decline. In New Jersey sources cite rising gas prices and taxes as contributing factors for the decline. According to a New Jersey business story, a gallon of regular in New Jersey cost an average of $2.75 per gallon in May 2010. Yesterday, prices for a gallon averaged $3.79.  An Exxon station in Summit was selling regular for $4.89 per gallon, the highest in the state.

Prices have been steadily rising in New Jersey since the beginning of the year. The state of New Jersey ranks 25th for average gas prices, according to GasBuddy.com. GasBuddy cites South Carolina as the cheapest in the country at 3.57 a gallon and Hawaii the most expensive at 4.46 a gallon and rising.

eWedNewz continues our investigation into the declining use of limousines in the United States.

 

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