With the $60-billion-a-year wedding industry pushing to make big profits, many couples who have a limit on what they plan to spend on their wedding go over budget, with some even dipping into savings and retirement accounts to pay for the occasion.
Seventy eight percent of newlywed surveyed had budgeted for their reception, but almost two-thirds said they’d overspent by 20 percent or more, a Consumer Reports survey found.
To afford the bill, 41 percent said they withdrew from savings; 11 percent took out a loan from a bank or credit union; and 9 percent, all under age 50, withdrew some money from a 401 (k) or 403(b), or IRA – a move that can trigger a tax penalty and be a potential threat to savings.
Consumer Reports also sent secret shoppers out to find out whether couples planning a wedding are being overcharged. Pairs of shoppers called the same photographers, florists, limousine services, caterers, and other party vendors at least a week apart and got estimates for a wedding and a 50th anniversary party that were identical. They gathered prices from 40 vendors in 12 states. Among the results, vendors quoted higher prices for the wedding than for the anniversary party in more than a quarter of the cases.
Among the findings uncovered by Consumer Reports secret-shopper investigation were: built-in wedding-based gratuities up to 26 percent and a $7 per person cake-cutting fee buried in some caterers fine print; photographers who inflated their prices because the affair was a wedding; and limousine companies that priced bridal packages higher than other, comparable services.
“If you’re planning a wedding, you need to be aware that you may be paying a premium for products and services in some cases,” said Tobie Stanger, senior editor at Consumer Reports. “You may not think to bargain, but you should. While our findings aren’t enough to indict an entire industry, they’re a warning to wedding shoppers to read fine print, ask smart questions, and negotiate before signing anything.”
How to get more wedding for the money
Americans spend an average of $27,000 on a wedding, according to The Wedding report. Consumer Reports offers these money-saving strategies:
- Ask for a lower price. Consumer Reports’ secret shoppers were able to strike deals with vendors including limousine companies, photographers, and florists.
- Choose low-demand season, day, or time-of-day. In many locations, January and February weddings are the least expensive. Friday and Sunday weddings are less costly than those on Saturday nights. Booking a venue before dinnertime for lunch or brunch can also yield savings; 21 percent of survey respondents said they chose a less timely cost of day for their reception.
- Compare buffet and sit-down pricing. Thirty-five percent of survey respondents said they chose a less costly menu. Be aware a buffet may be more costly because people eat more and often there’s more variety offered than in a sit-down menu.
- Save on alcohol. Put a time limit on the open-bar. Skipping premium brands and sticking to the venue’s house spirits can also reduce costs. Find a caterer that allows you to provide the booze and ask him or her to hire a licensed bartender. Then you can take home what isn’t used.
- Forget the favors, or DIY. If not, give something people may use. Order enough for half the guests and still expect to see leftovers. In Consumer Reports survey, 22 percent of respondents said they made favors themselves to save money.
A report on the survey, “Get More Wedding for Your Money,” appears in the June 2016 issue of Consumer Reports and online at ConsumerReports.org.
