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Do you discount for more hours and if so why?

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Do you discount for more hours and if so why?

Post by Terina on Tue Apr 05, 2011 2:39 pm

I usually don't discount my hourly rates. But, I do have people ask if I do. But I don't understand why you would discount, you are working more hours with the same amount of "work". So do you discount and if so at what hour do you give the break? Lastly why? Any feedback is appreciated. Thanks!
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Re: Do you discount for more hours and if so why?

Post by wmeventservices on Tue Apr 05, 2011 2:50 pm

I know a lot of face painters do discount for booking multiple hours. The reasoning I was given was that instead of driving from gig to gig wasting time and gas, they were able to stay in one place so this discount was considered reasonable. I haven't done discounting for multiple hours yet and I've been booked for 7 hours at a time before. It's really what works best for you.
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Re: Do you discount for more hours and if so why?

Post by AngieAnders on Tue Apr 05, 2011 2:55 pm

I do discount for multiple hours, because it's very easy to stay an additional hour since I'm already there and set up. And also to encourage multiple hours gigs. Sometimes people are willing to extend my time an extra hour because it is discounted, when ordinarily they would not.
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Re: Do you discount for more hours and if so why?

Post by Noella on Tue Apr 05, 2011 3:32 pm

I do discount for multiple hours (over a certain number, but not beyond the hours I consider us going into "overtime") and even for extra artists on some gigs - it encourages the client to book enough time/artists to cover for the children involved, so that the hours there are more fun than panic. I actually look at it more as charging a premium for the gas, travel and prep time, and the line manager (who goes on one person, two person or three person gigs regardless).
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Re: Do you discount for more hours and if so why?

Post by Lynnie on Tue Apr 05, 2011 4:51 pm

I do. It's easier to stay in one place than to pick up and keep moving. It encourages them booking for more hours. It's more encouraging for them to extend a booking once I'm there. I've been told by clients that they book me again because they view it as a better value than the other entertainers in the area.
I actually sat down and did the math once and in doing so, I actually realized that it increased my profits. I had more clients booking additional hours than when I did a simple flat rate. I also work with an entertainment company who said right out that they wouldn't pay my corporate flat hourly rate, but they consistently book me for multiple hours for the discount rate and are the biggest source of my income.

I offer discounts at the 3 hour mark, then I also offer half day and full day flat rates. To be honest, I chose the 3 hour mark was completely arbitrarily. Smile
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Re: Do you discount for more hours and if so why?

Post by Abril on Tue Apr 05, 2011 6:22 pm

How do you all work this out? as in prices?...if i book you for 3hrs what would the discount be? half the regular price? by X% ???

and Lynnie..hows that Half day Full day flat rates??
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Re: Do you discount for more hours and if so why?

Post by Noella on Tue Apr 05, 2011 6:46 pm

For me I book for a minimum number of hours (4) - so if they "only" want me for half of that time, it still costs the same amount (the "get me out the door, in your door and setup cost"). However the hourly after that minimum is not equivalent - ie when they multiply it out they are getting a "deal" - the hourly cost for additional hours/artists is less than 1/4 of the base price. If we hit 8 hours we are charging more than 1/4 of the base price for those hours (for each artist).
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Re: Do you discount for more hours and if so why?

Post by Kristal on Tue Apr 05, 2011 6:49 pm

Oh shoot, don't do half price! You could be doing half the time for regular price, for that!

I do have multi-hour discounts - most people will do 2.0 hours and that's it, but I have done some 4.0- and 6.0 hour events. Not severe discounts as I still need to make sure I make my money, but a bit of incentive (that usually gets added on with travel, again, lol).

I do:

2.0 H minimum (regular rate)
3.0 H (regular)
4.0 H (4.0 H for the price of 3.5)
6.0 H (6.0 H for the price of 5.0)
8.0 H (8.0 H for the price of 6.5)

If they want 5.0 or 7.0 hours, I just add an hour at my regular rate, so 5.0 H for the price of 4.5, or 7.0 H for the price of 6.0, respectively.

Does that make sense?
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Re: Do you discount for more hours and if so why?

Post by Geekophile on Tue Apr 05, 2011 7:36 pm

I give 10% off 4 hours or more. easy peasy.
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Re: Do you discount for more hours and if so why?

Post by Perry Noia on Tue Apr 05, 2011 7:52 pm

I made myself a chart... it gets a little bit cheaper each hour over 2 hours. I'd rather have 8 hours a little less than full rate than be driving all over the place or worse yet, not have anything else at all that day.
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Re: Do you discount for more hours and if so why?

Post by Daizy on Tue Apr 05, 2011 8:54 pm

I work out my prices based on set up cost and then and hourly rate. The first hour includes the set up cost and each extra hour is just at the hourly rate.
If it is a really large event or a reoccurring event (of say a total of 8 hours or more) then I often drop the initial set up cost.
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Re: Do you discount for more hours and if so why?

Post by Guest on Tue Apr 05, 2011 9:09 pm

I have my hourly base rate with a 2-hour minimum booking; a Half-Day Rate (up to 4 hours) is slightly discounted from full rate (by a half-hour!); a Full-Day Rate which is up to 7 hours for the price of 6. Time over the 7 hours is full rate.

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Re: Do you discount for more hours and if so why?

Post by Jody Rife on Tue Apr 05, 2011 9:57 pm

Very interesting topic. This is something I haven't done yet but will definitely want to be ready if the need arises. Very helpful stuff. Smile
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Re: Do you discount for more hours and if so why?

Post by Amanda on Tue Apr 05, 2011 10:21 pm

I only have a 1 hour minimum, and basicly the first 2 hours is my hourly rate, then at 3 hours + I discount $25 an hour. So it's a discount, but not a huge amount, and only if they are looking at 3 or more hours.

It's all about "perceived value". If people think they are getting a deal then they are more likely to pay for something. Offering someone a discount at a certain point makes them think more about booking that amount of time because it's a deal when they were considering doing less.
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Re: Do you discount for more hours and if so why?

Post by IamGinaW on Tue Apr 05, 2011 11:44 pm

I've been charging $100 first hour (only a 1 hour min) and $50 each hour after. For special shows I might make a deal for a long day to get the gig.
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Re: Do you discount for more hours and if so why?

Post by Terina on Wed Apr 06, 2011 5:52 pm

Thanks guys...I did decide to discount a little. But, I must say I found it dfficult to do. I think I need to make up a chart like Perry for sure so that I can easily figure my rates. I have been booked several times hourly but since the recession it seems more people are asking for discounts.

So, it was a a place that hires us a lot so, I thought why not. I am a first time discounter. I have gotten lots of parties from them as well. So, I just decided to discount. It was for 4 hours. So, I am going to go back through all of these and write down the suggestions. Thanks!!!!
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