Give a discount AFTER having a signed contract? Would you?

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Chuck - Another issue that should help determine your response is in your pricing structure... Do you charge enough to warrant another $20.00 per show discount?

Someone else mentioned that it is a measly $220.00. If you are charging $500.00 per event, then I agree, $20.00 is inconsequential. However, if you are only charging, say $200.00 per event (As I recall, these events are only an hour or a little more, correct?) then $20.00 is ANOTHER 10% on top of the 10% discount you've already given... The original 10% means that you are doing one event FOR FREE already. Can you afford to another party for free, or perhaps even half-off?

I'm also intrigued by those who say "it is only $20.00." True enough... But isn't it also true the OTHER way? Is living up to her agreement and paying "only $20.00" REALLY going to put her out of business?

Hank said:
If a job I contract 6 months from now ends up costing me more than it would to do it today, would I be in line to ask for MORE money? No, and that's basically what she's doing in reverse to you.
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As you and others know, I do a lot of work at campgrounds in the summer, many of which are quite a drive. In 2007, I based my 2008 rates on the then current prices I was up against. In 2008 everything exploded... gas almost doubled, food went through the roof, and my costs skyrocketed. Should I have called my clients (who booked the previous year) and say "Look, times are tough, gas is more expensive, and I need to ask you to give me $25.00 more per event!"? They would have laughed at me and NOT booked for 2009...

Chuck, do what you FEEL is right. You know what is right for you!
 
So dave you would discount even more and loose even more so you would not make money on the job (this isnt just one job by the way)

sorry I dont agree with your idea
 
Unless they had something to offer in return (barter) to tangibly make up the difference in goods/services of value to me, and because I already had a real day job like Papa does, no, I would not budge. It's not like Papa's gonads are swinging in a starvation line. If his families next meal was dependent on this check, then some serious hardball negotiations might be considered.

There also would be immediate discussions with this customer concerning the next batch of contracted dates with lesser fees in exchange for lesser hours or lesser services or, or, or kind of like the carrot on the string ideology.

But we all know Papa is a nice guy who loves his outside endeavors, couldn't stand someone thinking badly of him no matter what the cost to himself, so, yes, he would give in.

And it will gnaw at him, and his performance and attitude may subconsciously suffer from it.
 
OK, so all know, a bubble party is a one hour event. My normal price is $225. When I offered the 10% discount for multiple events ( I do this for all daycare centers ) I just rounded down to $200 per event. So, $20 more off is $180.

Last year my normal price was $195 for these events. I raised it to $225 this year because a few daycare centers actually told me that they thought I was under priced ( when I was at $195 ).

These events, to me , are like bonus money. I don't need the money, but they do pay for vacations very nicely. If anybody doesn't know, I do them before I head into work for my FT job. Most of them are also 15, maybe 20 minutes, or less from home.

So generally 2 hours of time from the time I leave til the time I get home.
 
OK, so if you were to do this, you will be discounting a total of $495.00, or giving away 2 1/2 shows worth of services for free...

That would be the same as this day-care center giving away 2 free months of day-care services for every 10 months paid... I don't think they'd be in business very long if they did that...
 
I don't like it. First, if you have ever done school dances ( I have- never again) you know that all schools are notoriously cheap.


Second, going for an additional discount AFTER the contract is signed strikes me as a bit icky. They may just be checking to see how far they can push.

Third, remember that you HAVE a signed contract already. By the way, this may be 11 parties, but in comparison to normal private events, you could probably cover it with what, three?


Fourth, from what I'm told, these parties are very inexpensive anyway, considering that you still are hauling equipment and doing the work that gets you paid much more at other events.


You know your client best, and in the end it's up to you, but it IS a business. I don't think that I would discount further.
 
I gotta agree with Wolfie.

I'd cut them the break. I look long term for these types of things...

$90 per hour isn't too shabby, when your using the bare minimum equipment wise, And it's extra money.......I wouldn't want the daycare to be mad, and stop doing them all together......Which could happen, if times really are tough for them...

We have numerous day care buildings sitting EMPTY in the valley.....They are FOR SALE.

There's no money in that for ANYBODY,
 
Precisionpower said:
I gotta agree with Wolfie.

I'd cut them the break. I look long term for these types of things...

$90 per hour isn't too shabby, when your using the bare minimum equipment wise, And it's extra money.......I wouldn't want the daycare to be mad, and stop doing them all together......Which could happen, if times really are tough for them...

We have numerous day care buildings sitting EMPTY in the valley.....They are FOR SALE.

There's no money in that for ANYBODY,
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Bingo! I would take $90 an hour in a heart beat. I have done jobs for $5 an hour based on the premise that there MIGHT be more work for me later based on the relationship. Some worked out, some didn't, but it was a calculated risk. Like I said, my largest customer came out of a job that I made $0 an hour on.

That being said, maybe they would sign a two year deal with one year at the new price and then an additional year at $225 a show?

Mike
 
Papa,

Knowing that with the economy, people are starting to cut back on the luxuries including day care, gym memberships, etc. I tend to believe her saying they are struggling, and not just trying to get more of a discount for you. I probably would give them a break. $220 lost is probably half of what you make on a regular booking.
 
A bit off topic but it may help.

Zac's mention of campground shows reminded me of our own. The last one we did was a few years ago when gas hit $3.00 per. The client had booked when their campground was busy, before the gas price hike took all the motorhomes off the roads.

It was a Halloween dance, one we'd booked every year for longer than I can remember. But this year was different. The crowd was 'way down from previous years. Evidently, many campers who had prebooked during the year didn't show, presumably due to the high cost of fuel. We used to see the pavillion packed tight. This time we had maybe 20 people in all. Shirl and I debriefed after the show... we didn't forsee this gig lasting much longer.

Sure enough, the owners didn't book us for the following year. They found a cheaper, local DJ instead. That didn't bother us since we were making quite the drive to do these dances anyhow. There was no room for a discount on our part.

Had we been living down the road from this campground like we used to, I'd have offered to negotiate. But we had no wiggle room. We were paying $3.00 per for gas too.

If I were in Papa's situation I'd be willing to negotiate. JK's suggestion of doing the last one free is a good idea. :)
 
jkcomputers said:
Stick with the full price and do the last on for free... Don't say anything, but that's how I would handle it
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Fred Stewart said:
A bit off topic but it may help.


If I were in Papa's situation I'd be willing to negotiate. JK's suggestion of doing the last one free is a good idea. :)
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I am going to give them a discount, but not a free show.....

I thought about this, and thought about some of the replies, and I still have my main concerns that I had before I posted.

1. If I don't, they "may" try to back out entirely, which would be a hassle for everybdy involved, and it would illicit no good will.

2. These events do spin off private parties on occasion, and I don't want to have those dry up.

3. Like John Allo stated, even among chains, daycare centers talk to each other... good and bad.... Now, what I will need to do is make sure that this woman does NOT broadcast to other schools that I lowered my price to them, or I might have a landslide of this happening. On the plus side, in a general way, she might spread the word in a positive "general good will" kind of way if I do this.

I never really thought about it til Fred actually posted it, but all these parents who have lost jobs may - probably are - taking their kids out of daycare. Fortunately, my immediate area hasn't been hit too hard, though.

I guess if I needed the money more, I might be less willing to renegotiate - which might be the exact opposite of how many of you might think.

I'm just a big teddy bear / sucker.........
 
If you won't even honor the contract, WHY DO YOU HAVE A CONTRACT!

Discounting begets more discounting begets...

Next thing she will want some extra time, only 15 minutes until we get everyone a turn, then 30 minutes then...
 
djrox said:
If you won't even honor the contract, WHY DO YOU HAVE A CONTRACT!

Discounting begets more discounting begets...

Next thing she will want some extra time, only 15 minutes until we get everyone a turn, then 30 minutes then...
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That sounds good... now think about it... last year I did 2 shows. This year they booked 11. I'm guessing I will get 11 again next year, and maybe 11 the year after that...

Should I lose all that because I want to play hardball?

I'm all for holding people to a contract IF the end result doesn't cut my nose off my face....


Won't happen because the kids are flat out worn out already before the show ends.
 
Being one of the Bubble Party guys, I'm a bit torn on the right answer as well. You want to do the right thing to not hurt business in a tight community, yet you don't want to be taken as a fool.

However, daycare is a business, they have budgeted for extra entertainment, in fact they mention the extra stuff they bring in as part of their sales pitch. So they need to provide additional services to stay competitive. Obviously they can't back out, but if they did or if you backed out, they would need to cover that time with something else. They want the kids excited, they want them to tell their parents that they enjoy daycare not that they saw some lame balloon animal guy (no offense Rictrax). They will spend money, how much is the issue. Hopefully many know how to get the most value for their dollar spent. This isn't like a public school having to squeeze their budget dollar, these are private businesses, and around here they make a nice chunk of coin (gross sales). I have two kids in daycare, in fact we've moved them through three different daycares in the last year (for reasons not relevant to this discussion). So I've heard all the sales pitches, I've seen the different services provided. I don't see (around here) their rosters dwindling, in fact I think more are looking for daycare as they look for second or third jobs. Anyway, I'm rambling and not sure what my original point was.

It's a judgement call based on the vibe you get from this woman, she is either a shrewd businesswoman or seriously looking for help. Perhaps meet her in person to help you make your decision. Also, some have said "think about future business" with this client...if they have budget issues now, they may not be around next year. Maybe the problem is that she is not a shrewd businesswoman.
 
Wayde, I think you hit one of the nails on the head. I think she is hurting financially. When she called, I "think" she was almost a little embarassed to ask for the discount. I could be wrong, though. With 2 parties last year, and 11 this year, I am hoping this becomes a long and profitable business dealings...

Before I "let her off the hook", I will tell her that this needs to be just for this season, and that next year we will get our regular rate.

Sometimes, doing the best and smartest thing isn't always reflected in your wallet.... right now.

Trust me, I don't LIKE this, but the alternative, if I force the issue, is that maybe next year she finds another type of entertainment, and I'm not the entertainer.

Another thing is "I" have fun doing these.....
 
people are starting to cut back on the luxuries including day care
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Oh my young friend. Unfortunately daycare is not a luxury but a necessity. But I understand what you mean.


Papa,

Only you can do what you think is right. Whatever lets you sleep at night is the right thing to do. I will tell you that I started my Bubble parties last year @$125 an hour. I'm going up to $150. The daycares around here won't shell out much more for one show. They all have budgets and they try get the most of their money. For me it's still unfound money. And like I said in a previous post, it gets me into these daycares to offer them CPR classes. A necessity they must have.
 
Mark Beecher said:
offer the discount and take time off your show. New contract of course.
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Can't really do that.... part of the point of the show is to have them tired out.... I need the whole hour. But thanks.
 
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