Wedding Business Ethics | The Preferred Vendor List

In an industry that mandates its survival on reputation, good manners and ethics, those wedding businesses who decide to take alternative paths to make a quick dollar may find it backfiring in the end.  Good ethics is simply good business. 

Wikipedia defines ethics as this:  "..... a branch of philosophy that involves systematizing, defending and recommending concepts of right and wrong conduct, often addressing disputes of moral diversity."

The Preferred Vendor List.  That document that is mainly used by leading wedding venues and many professional wedding coordinators to let their clients know who is the best in their field and , in many cases, requiring the client to hire from this list.  To be added to this list can be a long process for the vendor of producing many events over several years' time, making sure the wedding service provider (vendor) is adhering to the venue's policies for load-in, set-up, strike, insurance requirements, professional behavior as well as providing a consistent, quality service experience for the customer who hired them and making sure the venue and/or coordinator is happy with their services.  It is a delicate juggling act.  Sometimes, however, being on a Preferred Vendor List can also be a "who you know dance", with some vendors securing a spot on the coveted list because they have a personal relationship with the venue or coordinator.  Still, other venues will remove wedding service providers if they have not performed an event at their venue for a year or more, which can be due to many circumstances and sadly requires the vendor to start from scratch to "earn" a place back on the list. But none of these items listed here cause so much ethical controversy as that of the paid Preferred Vendor List.

Consider this example:  Photographer Suzie Bixten (all names changed to protect the innocent, and in some cases, the guilty) had been a preferred photographer at Three Arbors Inn for years.  Her clients loved her, Three Arbors Inn loved her. An advertising publication approached Three Arbors Inn and said, "We will publish a gorgeous, glossy wedding magazine/brochure for you at no charge.  Give us your Preferred Vendor List and your vendors will pay for it by paying to advertise in it.  We just ask that if they advertise, you only refer these paying vendors on your Preferred Vendor List and no one else."  Three Arbors Inn, eager to have a gorgeous glossy magazine publication/brochure at no charge (and perhaps receive a portion of commission from the advertising sales their vendors will pay), obliges. 

What Three Arbors Inn perhaps did not realize is that they sabotaged themselves more than they did securing a solid and economical marketing and advertising endeavor. Here are just a few of the issues that their decision raised:

• The Inn has just given away all their power to another entity who knows nothing about the vendors or the years building relationships with them and by damaging these delicate relationships, they are damaging possible referrals and business downstream from said vendors.
• The Inn has also given full rights to the advertising publication to bully their vendors by telling them that if they do not advertise with them, they (the Inn) will no longer refer them, thus affecting /cutting the vendor's business income.
• Finally, and perhaps most importantly, Three Arbors Inn is not telling its clients that the list that they are handing their clients are not necessarily the best professionals for the job, but rather, wedding service providers who paid their way to be on the list.

One highly -reputable , well-established Wedding Coordinator who does high end destination weddings had this to say, "Well, I suppose I have to advertise because if I don't, I won't get sent referrals by this venue."  One DJ said, "I cannot afford to advertise, so I guess this means after 10 + years of keeping my name on their list and working hard for them, I will be removed and replaced with someone new who may or may not know the venue or have a solid reputation."  And indeed, it happened.  Brides were being handed a list of vendors who were not necessarily experienced at that venue or had top-notch reputations but who had the funds to pay for a listing and mention.  Three Arbors Inn got their beautiful glossy publication at no charge, a commission on the sales that the publication sold to its vendors and event clients were receiving lists of "Preferred Vendors" that were purported to be based on "good reputation", but in the end was simply a list of vendors who bought their way either out of fear or "newbies" with no experience, eager to be able to be on a venue's Preferred Vendor List.  Unsuspecting event clients ended up not knowing the difference and  paid the "price" with a less- than-professional service standard in many cases for their most special day.  Still a few other vendors decided to boycott the venue entirely to protest their questionable ethics, costing the venue many weddings and special events from these service providers.

Perhaps the most glaring ethical issue here boils down to this:  to whom does Three Arbors Inn have allegiance?  To its customers, the clients, by providing them with referrals to service providers based on merit and long-term relationship building?  Or to  the vendors who pay the most money, the advertising publication who offers the loveliest free brochure?   Is there a way to ethically keep both happy and ensure long term business?
 
Fortunately, those wedding businesses and venues who choose to run their business like this are few and far in between.  And let's be honest, there are some reputable wedding businesses who have remained on that list , even if they did pay.  That said, what can you do to raise ethical awareness when it comes to this issue in our industry and help foster change and awareness?  Here are some ideas:

1. Share this article on social media platforms.
2. Start a conversation with your local event professionals in person, online and everywhere.
3. Form a group letter to the wedding business practicing this behavior stating the ethical questions and how it affects you, your business, your industry and the community.
4. Form a boycott of all leads, referrals and advertising practices with the violating wedding business.
5. Ask the wedding business requiring vendors to pay to be referred to declare this openly on all printed and online materials.
6. Let clients know who inquire about the venue's Preferred Vendor List and have your clients start asking the question, "Is your Preferred Vendor List based on event industry ethical standards or do you only present vendors who pay to be on your list?"

As a consulting business who trains industry professionals and consults with them on their wedding marketing, it feels wonderful to be able to say that we have helped raise awareness with this issue and are fiercely committed to continuing to do so.  We have helped countless venues turn down offers from advertising publications offering their services in exchange for only referring those who pay money to advertise. When we explain the ethical issues at hand to the venue Executive Team, they don't hesitate to quickly abandon the idea. 

You can do your part by continuing this conversation. Leave comments on our Engaging Inspiration Facebook page, Tweet at us and get others involved.  We want to hear how it's going! 

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Engaging Inspiration offers dedicated training, marketing and social media solutions for the wedding business and hospitality industry.