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Okay, who is ready for this episode, because I'm going to go over kind of a controversial topic, at least in the wedding and event industry that is specific to mainly photographers.
All of you photographers, videographers florists, DJs, caterers, hair, and makeup providers, get ready to listen in about why percentage retainers are no longer the way to go. And flat fee retainers are the way *and The Legal Paige reccomends* you move to! Knowing the structure of flat fee retainers and how to take retainer payments the right way is a huge, and a very smart business move!
- How COVID impacted percentage retainers.
- Why flat fee retainers are more legally, legit than any type of percentage retainer.
- At the end of the day I think this method will save you lots of legal issues.
- And how you can't change this structure to the current clients you have booked but how you can change this going forward.
"You make the booking retainer fee the same across the board. It will be different per photographer or per wedding event pro. And I understand that. So here's what you're going to do. You're going to look at your package prices and see what makes the most sense for an option front reservation, retainer to book their event or what adding on your calendar."
"So you want to ensure, of course that your booking retainer is less than 50% of all your packages. That's really important, which is why as they start with the lowest first, because most people would be in a position where they'd be willing to book you probably for your lowest package. They have the amount to do that, but you always want them to book the higher packages. So, no matter what package they book, you will want to ensure that you're getting a decent amount for a booking retainer. That's why I say anywhere from about 30 to 40% is a really good number. And it's always going to be less than 50%."
"Obviously you can't go backwards. You can't really do anything with your clients that have already booked you, but you can move forward like this. You're going to change your fee and retainer clause. You're going to change the way that you charge client. If they start booking you as of today from a legal standpoint and just from a basic financial standpoint it makes sense."