The Client Bidding Game

May 21, 2012

(Photo via Google Books)

I often wonder how our clients decide who to hire. What’s more important to them? Quality or cost? Sometimes, I think they care about both. But what I find disturbing is how often cost works to the disadvantage of the vendor.

I know a planner who has a very upsetting practice. This planner insists on getting two bids for their clients to choose between. First, this planner goes to a vendor who pays commissions and gets a bid — and then comes to me for a bid, knowing I don’t pay or accept commissions.

Now, there is no question that my team and I are more expensive that most vendors. And the reason is very simple. Most, if not all the elements of our designs, are custom made from scratch. Naturally, this means we’re going to have to charge more.

Anyway, the planner gets a higher bid from me, and then goes back to the client and presents the two bids. The client, who doesn’t realize there’s a difference in quality between these two bids, quickly chooses the cheaper option.

Written bid proposals, of course, are simply part of doing business. I recognize they’re unavoidable and, for the most part, the practice makes sense.However, when a planner has already decided I’m not going to get a job, it’s frustrating to waste all that time writing a bid! Not to mention I end up wasting my vendors’ time, because I have to ask them to submit proposals, too.

But how do you avoid writing bids for jobs a planner will make sure you never get? That’s tricky. So tricky, in fact, that I’d like to continue this discussion in my blog posts for both Wednesday and Thursday.

Dear Readers, do you care whether clients hire you because you’re good or because you’re cheap? And how about this ten million dollar question: is it possible to offer clients good quality and also be inexpensive?

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Tendencias Weddings and Events

May 18, 2012

Marcy Blum, Ira Levy, Valerie Romanoff, Preston Bailey, Cartagena Colombia

Late last night I got home from Cartagena, Colombia where, as I mentioned in a post before I left, I had the great pleasure of designing a wedding a few years ago:

preston bailey wedding cartagena colombia

This time I was in town for the Tendencias Weddings and Events Conference with the great Marcy Blum, Valerie Romanoff and Ira Levy. (That’s all of us in the top photo above looking cool in our sunglasses and hat!)

We stayed at the Hotel Sofitel Cartagena Santa Clara, which was originally built as a monastery in 1621. Today it’s a stunning five-star resort. My suite had the most enchanting view overlooking a courtyard garden designed by Florarte, who created the garden in honor of the late floral designer William Baena. It was absolutely magical:

garden in cartagena colombia

I was thrilled to be speaking in South America for the first time. But I was especially excited to be speaking at this particular event, because it was the first conference in South America with a so-called academic day: an entire day set aside for wedding and event industry professionals to come together and learn about and share the latest trends and ideas. I loved meeting so many people who are building careers — not just hobbies — out of planning and designing weddings and events.

Of course it wasn’t all serious academic learning! We had fun, too. So many local designers and florists contributed, and it was wonderful to see their beautiful work all over the hotel and conference.

And I was so lucky to have the amazing event and wedding planner, Simone Lejour, as my hostess. She organized and led the event flawlessly:

Simone Lejour wedding planner cartagena colombia

Guests from all over Latin America attended and had the opportunity to experience the breathtaking ballroom, which was transformed by the brilliant Colombian designer Andres Cortes:

ballroom preston bailey cartagena colombia

Juan Pablo Estrada is the talented in-house event designer for the Sofitel Santa Cartagena, and he created these stunning table designs for the fabulous bridal fashion show, which was held on the second day:

ballroom preston bailey cartagena colombia

Cartagena was so lovely and peaceful; it’s an incredible place. I didn’t want to leave. I wish more of my couples chose to get married there, so I’d have many more excuses to go back!

Thank you so much, Simone, Juan Pablo and Carmen Otero De Millan of the Hotel Sofitel Cartagena Santa Clara and Monica Restrepo of Todamiboda for hosting me. What an unforgettable event.

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Commissions: Greedy Money

May 17, 2012

preston bailey stop commissions wedding industry bad business practices

(Photo via Aaron W. Matthews)

It’s no secret that I don’t approve of planners and vendors who pay and receive commissions behind their clients’ backs. One way or another, the unsuspecting client always end up paying for it. Not to mention that commissions are just such an “old school” way of doing business.

Unfortunately, it’s still a common practice. Only a few months ago, a planner badmouthed me out of a design job when she learned I don’t pay commissions.

I told a friend about this incident, and, while we were talking, it finally hit home. These greedy vendors are the folks who are making “the big bucks” in the wedding and event planning industry!

My friend explained it like this:

Let’s say a bride is spending $100,000 for her wedding, and the planner is getting 15% (the going commission rate) from all the vendors — florist, venue, invitation designer, photographer, DJ, videographer, caterer etc… That planner is making an additional $15,000 of clear, easy profit.

That’s greedy money, plain and simple. The bride thinks she’s getting a $100,000 wedding. But, in reality, she’s being shortchanged. $15,000 is a lot of money and can make a big difference in the look and feel of an event. $15,000 buys a lot of gorgeous flowers!

The only way to stop commissions is to educate clients; they must get vendors to commit in writing that they are not receiving any commissions behind their clients’ backs.

Dear Readers, what are your thoughts on this loaded issue? I’m especially riled up because of losing that great design job. Have you ever lost a job because you don’t pay commissions?

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Good News and Great Reads

May 16, 2012

Inspire Smart Success Magazine

I have some good news to share:

Two wonderful publications were kind enough to include me in their latest issues. I’m thrilled to be in the spring 2012 issue of Stacie Francombe’s fantastic magazine, Inspire Smart Success. That’s the cover above, and below is a sneak peek of my story:

Inspire Smart Success Magazine Preston Bailey InterviewI’m also excited to be included in the May issue of Cosmo Bride China.

Cosmo Brides China May 2012 Magazine Cover Preston Bailey

This collaborative feature was fun to do, and I love the layout they chose!

Cosmo Brides China May 2012 Magazine Preston Bailey

Dear Preston: How Do I Start My Own Business?

May 15, 2012

preston bailey business advice how to become a wedding planner

Hi, Preston.

I’m sure you receive a lot of emails, but since you always post such great advice for those of us in the wedding industry, I thought I might as well ask some questions, too.

I’m an upcoming wedding planner, but I only plan on doing this on the side. So far, I have completed three weddings on my own and have four more weddings coming up this year. My concerns arise with the business aspect of becoming a wedding planner.

I started doing this for fun and for free, but, once word spread, I became busier and decided I wanted to have my own company. The problem is that while I definitely know how to plan events, I’m lost when it comes to starting a business.

I already have a company name, my own contract and packages, and a website underway. But how do I know when to get a business license? How do I make everything legal? Since I only plan on doing it on the side for now and am not making very much money, do I need a business license?

As you can see, I am very lost when it comes to these details! Any advice or recommendations would be greatly appreciated.

Thank you,
A New Planner

Dear NP,

Thank you for your letter, and congratulations on your new venture. It sounds like you’ve already had some exciting success and that folks are responding well to your work. That’s great.

Now, to answer your questions:

First and foremost, you should find a good accountant with restaurant and event industry experience.

Second, set up your company as either a Corporation, a Limited Liability Corporation (LLC), or a Sole Proprietor. Once you create a company and are filing that company in the state where you work, you’ll be able to purchase wholesale. A company will also limit your personal liability should something unfortunate occur.

Third, contact an insurance broker to obtain Workers Compensation Insurance and General Liability Insurance.

Every state has regulations for running a business, no matter how small. So it’s always a good idea to follow the rules carefully and make sure your business meets every requirement. Correcting errors later will consume a great deal of time and likely be expensive.

I urge everyone who wants to start their own business to seek professional advice. The small cost you pay up front will prevent headaches in the future and help ensure your success.

Dear Readers, did I miss anything? What advice would you add? Please share your expertise!

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