Shoppingcentre wants a quote

Hi mentors,
Please help me? I am developing my FP and balloon biz in a regional area of Australia. I am the only working FP in the area (as far as I know) and through some clever social networking, I've managed to attract the attention of a reasonably large shopping centre - yippee! (Well, large for around here, actually pretty small compared to any city-based shops)... they want some rates. Up until now I think they've been using volunteer painters.

I am not extremely experienced so don't want to charge beyond what is reasonable or seem greedy, however, I am the only 'professional' painter and balloon creator around (with insurance, registered business etc), and my work is not too bad so I don't want to sell myself short. I know I'm going to be flat out if I get the gig, especially in school holidays.
Aaah, I just can't decide but I have to call them back very soon.
Any ideas?

I have read other posts about this same topic, but I am still undecided.

Personally, I use the same rate for everyone - private and corporate. Just because you have a potential customer with deeper pockets isn't really a good reason, IMO, to hike your rate.

If your regular rate covers your costs and you've calculated it to actually earn you a profit... then I personally feel you should stick to the pricing you have and not have a two-tiered system of pricing.

I know some people do have separate rates but... not me. I have package prices and day-rates but they are the same for everyone.

(Have you calculated your costs? I have a spreadsheet on my resources page you can use to see if you are actually charging enough if you haven't - see the link in my signature.)

What Shannon said makes sense, but I chose to do two different pricing tiers. Private parties are easier and more enjoyable to me. I charge a little less because there is less overall work, less supplies used in the same time period, and like you said it is structured for a family to afford.

For public events, I am an entertainer who helps them bring in business so I don't have a problem charging a higher rate. I also have to schlep more stuff/signage/equipment/etc. to and from the venue, take the time and trouble to get an insured certificate delivered, work faster and under more pressure (often in less comfortable/outdoor circumstances) and most likely use more supplies since I am going to be painting more kids than a typical private party would have in the same time period.

My rate isn't vastly different but I feel it is very justified. I charge $75 per hour for private parties and $100 first hour/$75 each additional hour for public venues. I also offer a venue/event option where they pay me a $30 set-up fee and I charge patrons a per-face or per-tat rate plus put out my tip jar.

Thank you for your input. I really appreciate your resources Shannon, so helpful. I plugged a few figures into the spreadsheet and found the results interesting. Even though I don't have a full year's worth of figures to work with, I could do a rough estimate. I've already spent a small fortune on my kit.

Anyway, I quoted the shopping centre $120 for 2 hours. I think I will make that my base rate for all future party/event quotes. It doesn't seem unreasonable after adding up all those expenses in the spreadsheet.

For now I am waiting on a confirmation and then I suppose I'll need to put together a contract if I get the job. *sigh* there's a lot more to facepainting than just facepainting, I'm discovering.

My plan is to review my hourly rate every 6 to 12 months, as my skills and confidence improve, so will my asking price

But for now I feel much more comfortable setting my rate where it is.

The only change in pricing I've made so far is requiring two hours minimum for corporate events. Same hourly rate.

D.

I charge the same, but have longer times for the events:

bday party: $65 an hour with $30 each half hour after

event: $65 hour for each of the first three hours they book, then $60 per hour after

PS. I got the gig BTW, and they offered me an additional day on top. So, altogether 8 hours over 2 days... plus I'm hoping I that this will be the start of a long and loving relationship

Thanks one and all for your input.

Now I will go work on the contract.

If you want to make the mall even happier...post your being there on your blog & Facebook page. I also always put up a sign (with a logo I snag off the website) "Today's face painting sponsored by..."

I think that also reminds people that nothing is really "FREE" and for some reason people seem to be more reasonable. Congratulations...remember to always smile & "everything went great"!

Congratulations!

(and I agree with grin - always nice to recognize who paid for you to be there - and stops them expecting a freebee another time.)

Good advice. Such clever and helpful people in here!

WOOHOO, congrats and let us know how it goes! Great advice on the "sponsored by" with logo sign!

Good on you Trinkie!!!! Let us know how you go with the contract...yes that part sounds scary, haven't had to worry about that one yet.....