I am sure it's been here before....rates

So I have been spending time to research rates of who might be competitors. Problem is (actually a good thing), I can't find any. I found one other company, that does the whole clowning packages. No one who just paints faces. The closest besides them to me it looks like is Kathy Oros, who wouldn't be in the same business range area. So how to set me rates..... I am uncomfortable with starting at 100 per hour, only because I am new and don't really have any demand. Is starting out at 85 to low? Do I need to put a two hour minimum on a small private birthday party? I would like to set the rates up as packages. I know there is a lot of consideration for rates. Can some of you, who have been doing private parties, help me out? please!

Hi Eva, I think $85 is a good place to start. Once you gain confidence and a customer base, you can raise it if you like.

I know a lot of other painters who have a 2 hour minimum, but I don't. Most of the parties I paint for only need one hour, and I don't feel like they'd want to hire for two when they only need one. (I know I wouldn't!) I don't ever discount on one hour parties though. It's a full $100. I do sometimes discount multiple hours, but I need the first hour to be "worth it" especially if that's the only one I am getting.

Setting your rates can be one of the most nerve racking things in this business, but no matter where you set them, do as Shannon suggests write them down and commit to them. It will save you so much headache and indecisiveness. Many people say they charge different rates for different things, but I don't.

I have set my rate and if I want to do it for less I give a "discount" but make sure that they know it. I even put my rates on my website so I can stick to them.

This is what I do. I charge $100 per hour with a two hour minimum for a private party and $125 per hour with a two hour minimum for corporate. I then discount at the 3 hour and 6 hour mark and it breaks down like this:

Private
2 hrs: $200
3 hrs: $240($80 per hour)(Best Deal)
6 hrs: $360($60 per hour)
I never go lower than $60 per hour

Corporate
2 hrs: $250
3 hrs: $300($100 per hour)
6 hrs: $480($80 per hour)

Write it down, commit to it, say it with confidence.

But I would highly recommend coming up with a questionarre to ask them before you just quote. Your organization and professionalism in finding out their needs will help the rate be more easy to swallow.

1. What is the date and time
2. How many children
3. Boys, Girls or both
4. Theme to party
5. Party inside or out
6. Any special considerations

Based on these you can give them a recommendation of how many you can paint per hour. What else you can offer if they want to consider a three hour instead of two(balloon animals for younger, tattoos for you tween age). This is the time where you sell yourself and then you come in with the rates. Don't even let them talk, ask for an email to send out the booking form and some painting, balloon, or tattoo samples.

Even if they need to "discuss it", just tell them that the dates fill up fast and if they decide this is right for them, they have the form ready to go. And "No, I am sorry, but I can't hold a date without a signed booking form and a non-refundable $25 deposit) Times are too hard right now to not take a small deposit. You are going to be the first to go when budgets get slashed.

I hope this helps.

-Metina

Wow... rates around here are very different... If that's what people are charging in your area, fantastic!

I can only charge $100 an hour with a clowning show... just faces or just balloons is only $50 an hour. It's the only way to stay at a competitive rate in this area.

Thanks so much girls. It really helps.

I was thinking
1 hour 85$
2 hour 160$
3 hour 225$

And a extra 55$ per hour for the extra painter. We are partners so we will be splitting most profit anyway

Metina your corporate is what I was thinking. Although unless it is small i would like to require the second painter and maybe up it 25 dollars per hour. If it's small maybe stick to that.

We are also thinking of adding custom cakes, which are expensive(around a few hundred per cake) but my partner jen is amazing with them and thought maybe if they booked both we could offer 10 dollars off the cake or something.

[img][/img][img][/img][img][/img]

These are some of the cakes examples of what we may offer. what do you think? Would it work?

Those cakes are awesome! Anything you can add to give more value and the less the client has to take care of will only help you secure the business. Whatever your rates, just write them down and stick to them. Know ahead of time every scenario so you don't seem to be thinking about what to charge.

Spend some time and work up a spreadsheet. This will be time well spent.

As to the second painter, this is where the questionarre comes in. You know what you can paint in an hour and if they say we want 100 painted in an 2 hours and you can only paint say 12-15 and they only want to pay you for 2 hours, then you are going to need 2 other painters(which in my book would tiple the rate) no need for you to take a pay cut becuase they need more.


Also, keep in mind what you would feel comfortable asking another painter to fill in for if you get sick or something comes up. If you would never dream of asking another painter to work for the rate, then why should you or your partner.

-Metina

Also... YOU NEED TO KNOW YOUR COSTS!!! Please, figure out what your expenses and overhead are so that you are able to determine what your break-even point is, and then assess the market in your area... sounds like you've done that already.

My spreadsheet will let you figure out your actual cost per face/or hour ... and you can put in what you want as a "wage" into the equation too... then you can have the numbers in front of you.

You can get the Excell spreadsheet off my resources page (click on the word "here" in my signature block and save it to your computer.)

As far as a breakdown of rates - as Metina noted, I have a "Rate Sheet" that I keep for my own reference. I don't advertise my rates but have it all written down so I can keep it all in line. I have a straight hourly rate (two hour minimum - it just isn't worth my time to set-up for only an hour), a birthday party package (two hours for the cost of 1.5 hours but limited to 15 kids... ), a half-day rate (4 hours for the cost of 3.25 hours), and a full-day rate (7 hours for the cost of 5 hours), and my non-profit rate (which is 50% of my hourly rate offered at my discretion and it is a two hour minumum as well)... I do offer sliding scales to some of my corporate clients depending on the situation (usally a repeat event that is medium volumes - steady line but not a long wait...)

Those cakes are awesome!!!

Eva,
When I first started out doing birthday parties I charge $75.00 for the first hour than $50.00 each additional hour but after 1 year I started increasing the price to $90.00 then up to $100.00, mainly cause people that hired me were telling me I wasn't charging enough. Just make sure that your quality of painting matches your rate. I have some other face painters in my local area that are charging the same as me but their quality of painting isn't all that great. Your reputation starts with what you can do.
Love the cakes and they are worth the price.

Kathy

Thanks for the feedback on both. i am encouraging her to add the cakes, but some of them can take up to 20-25 hours of time. some are much more detailed than above pics.

I think i get it for the rates, thanks Shannon for offering the spreadsheet. i will definetly check it out. You girls rock.

Awesome cakes! I can understand her hesitation if she feels like way more work would go into them than money coming out. Maybe she could set prices that she'd feel GOOD about spending so much time on, and if you get business from it great, and if not, she won't have lost anything.

People will spend a lot of money on custom cakes... really. I would price them appropriately, but don't make them part of a package deal, they would be an add-on and offering a "coupon" would be a good marketing ploy.

Thanks all. I think the pricing has been part of the dilema. The cost can be upwards of 125 dollars and then the time. I think they would have to be in the 2-3 hundred dollar range for big some of the big ones. Maybe even more for some of the crazy customs she does.

Yeah I think for the cakes it should be 200-300. I just ordered my wedding cake and it was $350. It looks to be about the same size as the Welcome Josiah, not to mention like you stated they are custom made so they are unique. My wedding cake was just: heres the book of choices. I think my wedding cake looks exactly the same as my quinceanera cake way back when lol.