What would you do?

Okay, I have been face painting for about 2 years. I think my prices are fairly low and at a comfortable rate for people to pay and have never really had a shortage of clients because of this.

There is now a new face painter in the area (She comes to this site) and seems friendly enough and while there is kind of this bummer feeling about competition, it is also a nice feeling that if I get overwhelmed or can't help someone I can always refer them to her.

My problem and question is... She charges WAY LESS. I mean to stay competitive I will end up having to drop my prices more and I just think that stinks as this is my only source of income.

So, what would you do? Have a talk with her about asking her to bring her prices up... at least within $10.00 under? Or would you just drop your prices?

My prices used to be like $150 for 2 hours... Now they are down to $100 for 2 hours...

Hers are $75 for 2 hours

(If that helps a little)

Sorry (person I am talking about) I don't mean to try and talk about you but I wanted advice from other painters... No offense intended..

Well, I don't know, but I have a similar issue. But it's not really an issue in that I'm not a full time painter. Another painter's website lists her prices as being less than mine. She is a full time painter and it is her only income. I'm not too worried about it, as it's not my primary income... not yet anyway.

If she's new to the area, maybe she doesn't know that she can make more, and the market in your area will support her charging more. If I were undercharging, I would like to know. You always hate it when you quote a price and someone jumps on it gleefully, and you wonder if maybe you should have asked for more.

Good luck, Hopefully it will work out for the both of you.

Honestly,

You guys need to get together and agree to charge the same rate or else you will both start undercutting each other and only end up working more for less.

But if you charge the same, you won't have to worry about pricing.

But I wouldn't lower your rate. Sometimes, people wonder why you are charging so little and don't hire you for fear of lower quality remembering the "you get what you pay for."

I say figure out how to team up, or it is just going to be price war in which you will both loose.

Other things to consider if you charge the same or almost the same:
1. If she needs you to cover for her, are you willing to work at the lower rate.
2. Has she gone through the cost of doing this business as Shannon Illustrated. Even though we charge $100 per hour, this is not what we "make"
3. Think about ways of drumming up more business for yourself. Offer to work restuarants for just tips to increase exposure.
4. Do you guys both have insurance
5. Do you both have equivelent equipment, i.e. I am insured, have my own tent, table and chairs. Someone who charges less may not have any of this.

Hope I helped.

-Metina

I couldn't agree more. When I started painting here, I researched for a couple weeks to find pricing... There are a lot of painters in my area, but they have a really wide range in pricing... So, I put myself just below the top tier painters.

SuzySparkles wrote:My prices used to be like $150 for 2 hours... Now they are down to $100 for 2 hours...

Hers are $75 for 2 hours

(If that helps a little)

Sorry (person I am talking about) I don't mean to try and talk about you but I wanted advice from other painters... No offense intended..

None taken. I've only been painting for 6 months which is why my rates are low. I paint at much slower pace and require more hours to paint. I'm not in any way trying to undercut you. I don't think I offer the quality that justifies me charging rates that compare to others in the area. I also serve a different market then what you may serve, although I'm trying to break into other areas of the region I typically serve the Northside, and the income levels in my area don't support a much higher rate.

Makes sense Cabby. I have had a lot of parties on the Northside though and they have paid me the rates that I have charged. I do understand that some would have lower incomes though.... Hard to decipher that while doing a price quote though. Keep practicing, you will get better with time!! Mine really stunk up the place when I started.

While doing some market research at the library, when I reviewed the statistics for the areas I was targeting (large amount of child care centers, schools, children) I found the median income was around 28K for metro-milwaukee.

I totally wouldn't lower my rates, you get what you pay for. As an experienced painter I think your rates are competitive with other local painters.

Keep in mind some other statistics. Lower income families will many time save up for things such as us, whereas the higher income folks are the ones always asking for a discount and never tipping.

I would charge what the market would bare. If she can get the higher rate, charge the higher rate.

i charge less than other painters but because my work is average but some day i will do better!!!

You might also take a good hard look at your overhead and expenses and make sure you are making a profit. I noticed that you charge less for your glitter tattoo parties and your nail art parties. Most people charge more for those services since the material costs are more than for face painting.
Just something to think about when setting your prices.

I'm learning as I go.

Metina wrote:Keep in mind some other statistics. Lower income families will many time save up for things such as us, whereas the higher income folks are the ones always asking for a discount and never tipping.

Mmm, I don't agree on this. At least, in my experience, people with a higher income seems to tips much more.
When I did events with people with a lower income, I know I -never- get tips (or very little).

But, you know, I'm sure this changes depending of the area you live. People where I live seems to be very cheap, in general. And -not- just with facepainting. But this is a subject for another time.

I think here the lower income people are more generous with there money. I think they know what it is like to work in a service type profession and are thoughtful that way.. That is my experience.. I guess it is region by region