I’d like to start this blog by asking a very simple question. What is your hourly rate? And how did you come up with this rate? Did you take into consideration the following:
- How much time you spend with the client either in person, by phone or mail
- How much time you spend researching and designing
- The time you spend executing the job
- The time you also spend after the job is over–breakdowns or follow-ups of any kind
I get so excited while designing a job that I used to forget that, aside from creating a great design, my time is also very valuable. I also used to get so excited about the design itself that I got into a lot of financial problems in the past. I had a tendency to give away stuff to make the job more beautiful (great for clients but not too good for business).
My main reason for designing was never about money (even though, thank God this followed), it was always about creating great design. If you are like me, I had and still do have a very difficult time understanding my own worth. So now, I have a couple pieces of very important advice for all you artists who love your businesses:
- Get someone else to sit with you to discuss and establish your worth.
- Under no circumstances should you discuss pricing and money directly with your clients. (This positions you as always being the artist you are and never haggling about money. Have someone else in your company do this.)
I was lucky enough to find a great comptroller to do this job for many years. That was, without question, my first step into the high-end market. However, you could also ask a savvy accountant, your spouse or good colleague who knows you well in helping you establish your real worth.
I understand that we are all having a challenging time with the economy, but if you don’t plan on giving yourself a raise, no one else will. If not this year, then plan carefully for next year.
When was the last time you gave yourself a raise? Are you aware of your own worth? Is there anyone in your office or family that knows you well enough to help?
George Bernard Shaw once said: “You see things and say, ‘Why?’ But I dream things that never were and say, ‘Why not?’” That quote embodies how Preston Bailey approaches every event.
Sue Bain AIFD
July 1, 2010
Another GREAT blog!
Thom Green
July 1, 2010
I agree so totally. My partner or will sell concepts that does not take into account my production time plus the cost of deconstruction, clean up and warehousing. Not to say that my time is worth it, but it is. If I am in full production mode I should be working at a rate of $200 per hour, thats what I base my time at. Granted there are all the other factors that cut into that like installation, waiting for strike etc. But there are other factors to consider too, like most of what I build can be sold again with minimal alteration which translates into $$$.
It’s really hard to calculate researching a concept, proposing, and the time it takes to prep an event. It’s easier to base all that work and divide and reward the efforts through the clients deposit. Our current event is at an estate on the Eastern Shore, we currently have about $1000 invested in this and have not even gone to contract which means no deposit. We just spent last all day Monday and Tuesday at the estate going over everything, granted we were treated royally by the family, however the prize of a well earned deposit is within days. So really I have invested my time in this and will reward myself by taking a full dividend with this deposit.
You know Preston, every event is different, every client is different, and every paycheck is different. I think in response to your post is that one needs to decide when to take their personal cut of the event and decide how much your efforts are worth for the time you put into it before you put the actual even together. This way I can decide whether I can afford to throw any candy at it during production.
Just my opinion.
Allison
July 1, 2010
Hi Preston,
Today’s topic comes at a great time. I often discover that we spend more time talking about budget than we do about design. Due to the economy, the “first call” is usually about the cost for service rather than the actual service itself. Despite the economy, I am committed to accessing my design team’s time and worth prior to booking each event. I am also accessing the clients “fit” in both directions by helping them to understand what kind of budgets that we aspire to work with.
Laura
July 1, 2010
Wonderful, thank you! My partner has the event consults and always talks only design. I’m the one who talks money. Sometimes this is annoying (for me- lol), but he’ll be happy to see that this is an idea that you also encourage!!
I feel that in the currrent economical situtation, it’s tempting to sell yourself down & cut your worth short, but it’s really important that we as an industry stand firm with our pricing. We must never forget that we florists are artists- we create beauty. And everyone knows beauty ain’t cheap.
Alysia Ellison
July 1, 2010
This was truly perfect timing. I am in the middle of setting rates for my services. I too tend to get excited about the project and sell myself short for the sake of design and beauty. There has to be balance and determining your worth is a great start.
Tamiko - All Things Simple
July 3, 2010
Preston, this was truly a much needed post. I am in the process of re-evaluating my hourly rate. I too, have a tendancy to give away the house especially for friends and family and I tend to pay for various design elements out the kindness of my heart because I am trying to keep them in budget, but I want the event look more than what they expected. As a result of this, I have tapped into my own profits, which as you stated can cause a financial strain. I really enjoy planning events and I loose focus on how much has been spent out of my own pocket. Anyway, I have a friend who has mentioned that I am nowhere near charging what I am worth and I think I am getting in my own way. So, I am taking these tips to heart.
Again, thank you for this post and I will now put value to my worth because it does start with me.
Tamiko
sweet1
July 15, 2010
How does one go about deciding what their time is worth? I understand taking into condideration how much the arrangements will cost but after that…I am not in an area where I could possibly charge 200.00 per hr. I would never be able to do another wedding!! Any help would be greatly appreciated…I totally undertand that sometimes you have to give ypur services away in order to gain clientele…have done it before not above doing it again! Thanks for your input
Linda
July 16, 2010
I ,like SWEET1 would also like to know how you decide what your time is worth?
Thanks !
veterinary technician
July 19, 2010
this post is very usefull thx!