The clients have to pay. Yes, one way or another, clients are the victims of these scams. Recently I had a meeting with a wonderful colleague from the Los Angeles area, and I was shocked to hear that the concept of commission is a rather common practice.
I am not suggesting it is not also happening in my neck of the woods (New York) or any other city for that matter, but I still don’t get it. I have written about this before–collecting or paying commissions without our client’s knowledge is one of the ugliest dirty secrets in our industry.
(Image via)
These are my concerns:
- The practice of paying commissions gives planners and other vendors the power to say, “If you don’t pay up, you don’t get the job.” This is just wrong on so many levels.
- If you are a vendor and you do agree to pay commission, either you are going to make less profit, or you are going to short change the clients with the quality or quantity of what they get.
- f you are a planner or vendor, and you lowball the cost of your services to get the job with the explicit purpose to charge your vendors commission, you are doing a huge disservice to our industry. By doing this, you are undermining what other honest planners or vendors are charging. No wonder why most clients are so confused about what services and things actually cost.
I wish I had the power to blow the whistle in a public way on this problem. Maybe that’s the only way these bad apples will stop. Where do you stand on this issue? Do you think it’s a common fear to our clients?
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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.
Janice Robinson-Celeste
August 17, 2010
Preston, we offer our planners a discount that they can choose to pass on to their clients. The discount is only given to planners who give us a good amount of work every year. I do believe the planners who I work with actually do pass the savings on to their clients.
Janice Celeste
Celeste Studios
http://www.CelesteStudios.com
ajpur10
August 17, 2010
This is a great post and indeed, it’s something that we’ve always turned our noses at. Rather, we pass along any discounts directly to our clients. Before they ever hire us on, we make sure that on top of impeccable service and a fabulously unforgettable event, our clients know that they will save money by having our team on board.
Most large rental companies offer up discounts which is okay, as our clients reap that benefit.
Cheers on the new look!
Aleah + Nick Valley
The Good Life Special Events
http://www.valleyandco.blogspot.com
daytoremember.net
August 17, 2010
I find it so sad and despicable that there are still vendors who choose to work this way.
As planners, we receive wonderful discounts and/or extra services from vendors and these are the discounts/services that we gladly pass on to our clients. We love for our clients to be happy. In the end, it is a win-win situation for everyone involved.
artstarphotography
August 17, 2010
I feel this practice is is simply tactless and inauthentic. When I make a referral, it is because I believe in the quality of the wedding professional’s work. When I receive a referral, I say thank you with a card and perhaps a bottle of wine, as a thoughtful gesture to actively show appreciation because that is not done enough in our industry.
Evegenia Poplett
August 17, 2010
I couldn’t agree more! This is something I feel strongly about. Unfortunately, there are some venues/planners who want a quick buck without having to lift a finger. This is frustrating because at the end of the day the client suffers. One wedding ruined is one too many…
Bellow I saw a comment about industry discounts, which is what most hiring companies offer in South Africa too. This gives a designer or a florist an opportunity to expand the budget if they wish, or simply pass the discount to the client.
Thank you Preston for a fabulous Blog!
Angela Abernathy Smith
August 18, 2010
Mr Bailey, I have worked for a couple of the largest Destination Management Companies (DMCs) and I know that this happens. I am personally against such behavior and agree with you that there should be some form of action that could be taken for this behavior.
I have always been up front, very transparent with my clients and colleagues and I refuse to change that. Yes, some vendors offer “preferred” pricing so that event planners are able to upcharge for their services, but to receive a kick back on those same services is wrong.
Nishaka Askew Proctor
August 18, 2010
This is such a great article. As mentioned before, I’ve been organizing events now as a business for the last three years. I still do not understand the commission process and why it’s done. I do not charge a fee nor do my vendors charge me a fee. Since I have worked with several vendors on a consistent basis, they have been gracious to give my clients discounts especially when the budget has been tight. The savings has gone directly to the client. I say thank you to all the planners who are handling this matter the right way.
Nishaka Proctor
http://www.EventsWithExcellence.com