Today’s post should really be called: Making Money as an Art Form. On Monday, I wrote about overcoming the biggest blunder of my business to date: owing a million and a half dollars in debt, that with great difficulty I paid back in 5 years. Today I’d like to discuss how I got into that mess.
The number one reason was that even though I had a product and design everyone loved, as an artist I was completely ignorant about how to charge enough for my flowers and designs in order to make a profit.
Second reason (and this is one of the reasons I am so against this practice): giving away commissions. Every time I did a job where I needed to pay 10 to 20% to any planner, I was honest enough to pay that cost from my pocket and not have the clients get less product. However, at the same time, I was losing a lot of money.
My concept of being an artist and having a great deal of passion for my work has completely changed.
Before:
- When I was doing a job, I did not care what things cost as long as the design was beautiful.
- Even if my client could not afford to pay for that special something, I would do it anyway at my cost.
- I was not in the least bit aware of what my overhead was. To truly understand how much money I need to run a successful business, I should have known this.
- I was always discussing pricing personally with my clients. (Bad idea, have a third party in your company do this.)
A former president of my company, Mr. Sean Low, explained something so basic to me that I can’t believe I never thought about it. He suggested that I bring the same love and passion I have for creating my dramatic spaces into creating a way to sell them.
This very simple advice changed my business life. For me, “making money as an art form” is the simple practice of creating a way to sell your designs or products in an “artistic” way where your clients understand what they are paying for.
This was the main reason I came up with the idea of giving all my clients three concepts of my designs to choose from. This is definitely more work (but I don’t mind because I could design all day every day), but the beauty of this system is that if your clients make a choice, they’ll more readily pay for what they are choosing.
Most importantly, they appreciate that you are willing to go that extra mile to please them.
I think part of being a good artist and business owners is being properly compensated for all your talent and creativity. I encourage you all to make this switch, and start looking at making money as an art form. (It’s much more fun to think of it this way.)
Are you charging enough for your services? How did you establish your worth? Are you in the habit of giving away your products? If so, has it paid off?
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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.
Mara
November 11, 2010
It’s difficult when you are first starting out to move beyond the need to make just “something” however small it is. I find myself fighting the urge to give away my services because any amount of income would be nice when you are just starting up your company. But I understand that I have to bite my lip and be patient for those that are willing to pay me for what I’m worth.
Thanks for the tips on giving clients three design concepts… I will definitely put that into practice!
Sarah Spano @ Hip Ink
November 11, 2010
Thank you, thank you, thank you! I feel like I am constantly struggling with this very issue, and your post helped me see the value in my work (custom wedding invitations). I’ve been guilty of “giving” things away to please my clients, but I’ve begun to realize the harm that does, not only to my brand, but to my colleagues as well!
Annette
November 11, 2010
WHAT WOULD YOU LIKE TO SAY?
Annette
November 11, 2010
Preston,
Great advise, thank you for sharing your experiences.
Yolonda
November 11, 2010
Thank you soooo much for this post! In the beginning stages of my business, I worked for “zero” profit just to be able to do a job. At the time my staff was composed of friends and family who were enthusiastic and happy to help me get started so they worked with me for free. After 4 years of hard work, lots of fun and wonderful reviews, I finally decided my designs were valuable and began learning how to properly charge for my designs and services, in turn I ended up turning away clients. However I read somewhere that you never want to be known as the cheap designer because you will never attract clients who are willing to pay you what you’re worth. In 2010 I began working with a new attitude about my value and the worth of my brand; Although I did fewer events this year, those that I did were profitable for me from a design standpoint as well as financially. Thanks for the validation, I feel like I’m moving in the right direction.
YOUR NAME
November 11, 2010
thanks Preston I am guilty of not knowing my worth and giving away my talent for next to nothing I now have a new respect for my talent and charging a respectable fee that is worthy of my offering.
Yasmine Rosario
November 12, 2010
WOW! So me. I am starting my own business and have been finding my self a lot of the times do that same thing. “Not Charging Enough”. With a recent event that I was hired to do, I found my self creating a beautiful event but not gaining anything at the end for myself “my art”. My thought is always well its a side job now and I work from home so its ok to charge pennies. But for this passion to become mines 100% I’m laying down some ground rules for my self and taking plenty of notes down from you. Thank you for your personal insights.
Be Blessed
Jennifer @ Studio JRU
November 12, 2010
What a great post! As an artist I find pricing my art to be the toughest thing to do. It is so fun to make and so difficult to put a price tag on it. I worry too much about what people want/can pay. Thank you for helping me look at this in a new way. I would love to hear more on this topic!!
Jonathan bates
November 12, 2010
You said it well — I’d add this: “If you put a small value upon yourself, rest assured that the world will not raise your price.” (Anonymous)
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DEBORAH DAWKINS
November 12, 2010
THAT HAS BEENMY PROBLEM FOR YEARS. WHETHER I AM DESIGNING FLOWERS OR PAINTING BABY ONESIES WHATEVER, IT IS RARE THAT RECIEVE WHAT MY WORK IS WORTH. SO I’VE BEEN LOOKING AT THE PAGES OF THESE FLORAL BUSINES SES OR THE T.V. SHOWS THAT FEATURE BRIDES JUST TO GET IDEA ABOUT THE PRICING. THANKYOU PRESTON OH BY THE WAY, CHURCHES ARE NOTORIOUS FOR FOR GIVING LESS THAN!!!!!!!
Savannah
November 12, 2010
As always, simply fabulous and helpful advice, Preston!
Thank you very much.
-Savannah
The French Bouquet: http://www.thefrenchbouquettulsa.com/blog
Petite Fleur: http://www.petitefleurtulsa.com
Los Angeles Event Planner
November 12, 2010
So true. I’ve definitely been guilty of this in the past. I’ve always been told that it is important to be different from the competition. Just recently, I’ve decided to not only be different in my designs, but also different in the fact that I’m going to CHARGE what I am worth.
Courtney
November 12, 2010
These are such wise words to live and work by. As a person contemplating working for himself, this could not have come at a better time. Understanding your own value and what you bring to the table is just as important as the designs you place before a client. Thank you for sharing your insight…….
Bamidele Odugbesan
November 12, 2010
Wow…such timely advice to get from my mentor and role model. I dream up concepts and unique event/decor ideas constructing from scratch and i see other event planners using these ideas…but sadly i don’t get financially compensated enough for my creativity. Things are better now though…lol