I’ve always been more than a bit uncomfortable asking my clients for money. In the past, this has led to a great deal of financial burden. Once, I worked with a client for over three months before she paid me even a dollar. Eventually, I learned how to set up very specific payment schedules. Here are a few payment methods that have worked for me as well as a few that haven’t worked so well.
As many of you probably know, spending a lot of energy bidding on a job that you may not get can be a huge waste of your valuable time. I get many calls from corporate clients as well as brides asking for bids. This is tricky, because I need to ensure that whatever I bid is enough to actually see my design through to fruition. I have three options:
1. I can give clients a price range of what I think the job will cost. However, clients are often not satisfied with this. They almost always want specifics.
2. I can actually design the job and price it. But, this takes up a great deal of time, and there’s no guarantee that I’ll get the job.
3. I can thoroughly explain my philosophy and ideas to potential clients, and hope that they’ll trust me enough to take a leap of faith and hire me.
I can’t blame clients for wanting to know what they’re going to get for their money before they sign at the dotted line. On the other hand, if I’m not careful, I could end up in a bidding war, which is a waste of my time and my resources. You’ll probably be unsurprised to know that I almost always go with option number three. And here’s how I do it:
1. I’m more than willing to meet with prospective clients on three separate occasions to answer whatever questions they have. But no more than three times!
2. I’ll always show prospective clients my previous work, and give them a clear understanding of what those jobs cost.
3. And, lastly, I am happy to give prospective clients a written proposal.
Now, on the flip side, after I’ve secured a job, I have to start collecting the money my new clients have agreed to pay me. This is an especially big challenge when you’re just starting out in the wedding and event planning industry, but it’s really pretty simple. I ask new clients for a nonrefundable retainer to “save the date” of their event. This, of course, will eventually be applied to the overall cost of their party or wedding. And only then, when that nonrefundable retainer check has cleared the bank, do I begin the design, planning and presentation process.
A few questions for you: Would you ever design a job before getting a commitment from the client? At what point do you say to potential clients, “I’m sorry, but I won’t do that. You’re wasting my time.” Have you ever invested a lot of time in a potential client only to lose the job to another vendor? What happened?
Later this week, I’ll discuss how to make sure that you get paid in full before the event.
And don’t forget, tomorrow I’ll answer another of your questions for my Dear Preston column. Send me your questions at dearpreston@prestonbailey.com.
PREVIOUS
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.
Nicky
May 16, 2011
As we are a new business we tend to do a lot of our custom design work free of charge. This way if we lose a client which thankfully doesn’t happen much we have yet another design to add to our portfolio therefore have a larger selection for brides to choose from.
I have learned the hard way of bending over backwards for some brides only to have them walk away and never heard from again. It’s annoying not having a reason for this and never actually knowing what happened when they were more than happy with the design.
naazneen D
May 16, 2011
I always tell my clients, even if they know my boss well, that as a company policy i need to get he FULL payment collected in advance, and that there are 3 to 4 partners so they actually make the rules, so i can help them in whatever way they want but ” JUST THIS 1 THING I CAN’T DO MUCH ABOUT PLZ”..And somehow they all seem to understand the way i say it!!!And then i add in by saying that they dont have to hassle themselves as I shall send my man across to get the FULL payments collected…;)
Birds of a Feather Events
May 16, 2011
I never do any work without getting paid first. I have done a few free weddings for friends just to get my portfolio started, but that was a different story. I have found that clients respect you, your time, and your work more if they are paying for it. They take you for granted and put no value on anything you give them for free.
Destani
May 16, 2011
I am an up and coming event planner specializing in kid related events. I am having the hardest time trying to collect full payment up front. Many of my clients either want to pay in installments or after the work has been completed. This is very hard for me because I don’t have the working capital to purchase everything on my own and then get reimbursed. How do you “convince” a client to pay all costs up front?
Meta
May 16, 2011
I usually meet with potential clients for free for approximatley 1 hour. During this hour I try to get an idea of the clients personality, preferences, color choices, like and dislikes in designs. I also get here #s, # of guests, # in bridal party, etc. I then go back and create a vision board, (nothing specific), colors, fabrics, etc. I send this along with an itemized quote on all items to be used in the design. If the proposal is accepted, i then present a contract, which states that 1/3 of the total cost is due upon signing the contract. This amount is non refundable. After recieving this amount, I create the design, work through all of the specifics. We also work out future payments, with the stipulation that all monies are to be paid at least 2 weeks prior to the event date, and the no services, or products will be delivered until monies are paid. Approximately 95% of all clients that I meet face to face, decide to do business with me. I have had problems with very few people about payments. I find that if I present it a a business deal, which it is, then people are agreeable to the terms.
Tere
May 16, 2011
Yes, I have done this before. I did a mock up for a client who I chatted with via phone about her wants, needs, budget…etc. Trusting her I felt if I did a mock up she will see my talents and sign. That was not the deal..she came-saw-and stole my creation. It was ironic that a friend was invited to this wedding. She saw my mockup but didn’t know the clients name. So it was a shock when she called me from the wedding stating this wedding had the same linen, chair covers and centerpieces and it was a bigger shock that I was able to tell her the brides name without her saying first.
Kristin
May 17, 2011
Only one time have I taken the time to do a proposal for a client (the daughter of a very well known NFL head coach) only to get the run around and no contract! Then she had the nerve to send me a wedding invite! That in itself if another story. After that experience I will meet with the clients in person no more than three times, like you said. I will email them a very general proposal with 3 different price points based on what we discussed in the meetings about what they want done for the event. I NEVER do more than this without them giving me 1/3 down and signing a contract. I do large jobs for the most part for 1/3 down is enough to get started and start spending a lot of time on the designing and planning.
Connie Mak
May 17, 2011
Hi Preston,
I did a couple design work for friends free of charge when I started out. Soon I have good pay masters and bad ones too. I would only meet potential clients twice and the third meeting would be a downpayment of 50% on my service fees; it’s stated on my contract that the balance amount to be paid 1 week prior the event day. Whatever extra amount that runs up to the date of event (in case of additional requests) will have to be rendered within 3 days from the event.
It is not be all sweet on the 2nd meetings, most reacted on the proposed price; one couple actually hijack my idea and try doing it themselves. I always follow up with an email or phone call asking for feedback, ‘why did you turn down my proposal?’ If they reply, I can use it constructively; if they avoided me, probably they bring my proposal somewhere else. These are some hard truths, so I learnt my lesson by only providing range proposal options without pictures. Pictures are strictly for presentation on meeting days only.
My question is, am I still revealing too much with price range proposal and verbal presentation?
Savannah (Pearls and Pages)
May 17, 2011
Thank you for sharing this, Preston.
I think if people to chose to take the 3rd approach, as you do, then they’ll definitely need to follow your 1-2-3 steps on how to do it as telling a potential client that they need to trust you after you explain your philosophy to them could leave them thinking, “But I want something solid on paper, still!” I can see that many clients want that final number. Of course, once you tell them a price and you end up promising the world and are short-changed and making extravagant efforts for a too-low price can leave you in a lot of trouble.
I think it’s easy to get excited about a new client or job and start the process before even a penny has been paid. But I have to stop and think clearly that until a retainer is paid or the service is paid for in-full, and a written agreement is made, jumping in and designing with no collateral can be dangerous. You have no guarantee that the time and money and resources you’ve spent on the client will actually be compensated. A fine line with these details…thank you for the tips!
Luckily with my young business I have not experienced any lost jobs after having invested much unpaid-for time and resources. I hope to keep it that way. Keep up the great tips! Always a pleasure and a help!
Cheers,
Savannah
The French Bouquet: http://www.thefrenchbouquettulsa.com/blog
Petite Fleur; http://www.petitefleurtulsa.com
Rachel
May 17, 2011
I recently had a bride take up literally hours on email and in person. When I sent her through an invoice she let me know, that she loved my ideas but someone else had given her a cheaper price. I later found out that the pictures of my work I had emailed her she had taken into another supplier and told her my quote, which she had beaten by $5.00.
I now only send pictures through to brides who have paid a deposit to ‘save the date’ and let them know that my quote is confidential!
grrr it irritated me to no end though!
Michele Birkner
May 17, 2011
As an upcoming planner, I will say this happen to me – I met with the client, gave her ideas of how we can work out her vision, even met a 2nd time to discuss more options and gave her more ways to save as well as more ideas to pull her vision together, a month later she decided to go with someone who was less expensive then I was but she used all the information that I gave her. I wasnt upset, I just knew in my heart I was definitely walking in my calling especially since she did use “my” suggestions . But this is GREAT information to a newbie!! Thanx Mr. Bailey for all that you do! A big hug from the NC!
Nishaka
May 22, 2011
On some occasions I have given price ranges as well, but I prefer to have a face to face consultation to learn more about the vision of the event to understand the details of what it will take to do the job. My face to face meetings go extremely well and over 90% I get the job when we meet in person.
I am learning more and more how in depth I should go and not to go if I feel like the prospective client is price shopping or interviewing other planners. After that I will send a proposal usually same day or very next morning to the prospect. Once it’s a go, then contract is sent and signed with 25% of the total required as a deposit (non-refundable). That has worked very well.
I have in the past have given too many ideas and was not even hired for the job. I found out in once instant that they took my ideas and hired another planner because she was charged lower. I was not very happy about that of course.
With each experience, I am taking each experience and learning from it to get better and better on the business and money aspect of event planning!
B Floral
May 26, 2011
Preston –
I run a company with a policy of no paid advertising or promotion, we focus on marketing by word of mouth. how important (if at all) do you think charity events or auction items are as a way of marketing designs and services to the appropriate audience. what other methods do you have success with?
Teri
December 30, 2011
Hello Mr. Preston Bailey, Happy New Year, I am a local Event Planner in the Dallas Texas area. I am interested in including Event Design to my client’s events. I have a two part question:
1. How do I convince the clients to accept the beauty of what they event could look like by investing in the designs? I.e. flowers; deco; table lining.. etc.
2. 2. I do included that above items in their budget right (lol)
Thank you for your help..
Happy 2012!