This morning I promised that I would outline the payment plan I ask all of my clients to follow. So, here it is!
I’ve been ask many times how I handle payment. This is tricky because, obviously, you need to get paid, but your client also needs to feel comfortable. Below is my model, which I developed after a great deal of trial and error.
1. I get a call from a potential client, and we set up a preliminary meeting. When we meet, I try to get a solid sense of the client’s needs and dreams.
2. As I’ve mentioned in previous blog posts, I’m more than happy to see potential clients a second or even third time to address additional concerns. At these meetings, we may even discuss what certain design elements generally cost.
3. Once the client and I are both comfortable with each other and have established a verbal agreement, I request a nonrefundable amount of money to hold the date of the event.
4. I invite the client to another meeting where I present the designs I’ve come up with for his or her event. Usually, I will provide at least three different designs.
5. Once the client chooses a design, I give him or her a written proposal and ask for 50% of the bill.
6. I ask that the client pay the remaining 50% two weeks before his or her event.
Truthfully, I could write a whole book about money and clients! Please leave a comment, and I’ll try to address your concerns and ideas on this topic in greater detail next week.
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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.
Shari Green
May 19, 2011
I’m curious..Do you charge a percentage or a flat fee for holding the date?
Michelle Baxley
May 19, 2011
Hi Preston,
I handel my payments in a simular way. I love meeting with my clients and making their vision come to reality. I read your article on commision. I charge a precentage of the final budget, including mark-ups. Im I on the right track? Any additional advise?
Michele Birkner
May 19, 2011
I couldnt agree more! This way you find out just how serious they are about your services… my hardest thing right now flat fee? or a percentage? any suggestions? If you go with a percentage what do you do if the budget changes? Do you have a clause in your contract if it changes so does the percentage? if you are a percentage do you have a cap at where you draw the line?
Tywana Tyler
May 19, 2011
Do you charge a consultation fee as well? I actually stand by that. Also, how do you feel about monthly payments?
Rowena Pollard
May 19, 2011
Hello Mr.Bailey,
First off I want to thank you for all the great advice and tips you’ve been sharing.
Now my question is: After you have your 2nd meeting where you present multiple design ideas, how do you counter the possibility of someone taking you concepts and trying to execute them on their own without utilizing your services?
Celia
May 19, 2011
I try to follow a similar reconcile by two weeks before plan. BUT how do you deal with the client that carries you to the wire with the balance payment? Basically it’s like days before and still no money!!
Sharon
May 19, 2011
You should write that book
!
Melonie Karl
May 20, 2011
Thank you for always sharing such valuable advise. Please tell us how do you deal with the client who; does not pay that final payment within the two week period prior to the event.
Occasions 2 Remember
May 20, 2011
Great advice! I follow a similar model in which I conduct an initial consultation and up to 2 additional consults at no charge if needed. I provide them with a Story Board that outlines all the details for the event and require a 25% deposit upon acceptance. I do accept monthly payments, however the final payment must be made 30 days prior to the event. I also inform them the cost could change if substantial changes are made after the original proposal was accepted.
Angela
May 20, 2011
50% is way too much to pay two weeks to an event. I charge 50% as down payment. 25% -6 weeks to the event and the balance 25% one week to the event. Although after reading the reason given for charges two weeks before. I have changed that now to two weeks.
Leslie Palme
May 20, 2011
Preston, how do you predicate your non-refundable deposit? Is it simply a consultation fee? I would like to know as I cannot tell you how many times my time has been wasted.
Nic
May 20, 2011
I charge a non-refundable deposit and offer a payment plan, which makes it easier for my clients and for me. My proposal was written by an attorney. How To Be A Party Goddess is a good resource for those of you who need information on what clauses to include in your contracts.
And Preston………so are you off to write the book on Money? lol!
Lisa Juliano
May 22, 2011
Is there a consultation fee?
Kanika
May 23, 2011
Hi Preston, it’s great that you touched on this topic as it’s a challenge to handle money matters with clients, especially in india as seeking professional help for a wedding isn a fairly new concept. Anyhow, so we try our best tonged 50 percent before and the remaining a day prior or on the day of the wedding. Somehow getting the first installment is easy but e re owning money, clients just want to pay after and it is a nit mare trying to convince them. I did get into a soup with one who came through a solid reference and then cheated us and I had to take them to court t retrieve the money. Do you think 3 installments would psychologically help the client? All advice very welcome, thanks
Kieffer
May 23, 2011
Preston thanks for all of the great posts! We give clients an incentive to pay early by offering a percentage off.
Ayana
June 1, 2011
In your experience, which is the best method? charging a flat fee or a percentage of the total?