Retainer Amount?

How much do you require for a retainer? I am finalizing my pricing for next

year (2008) and my package prices will be going up by a notable amount. I

have already had a couple people say that even though they are fine with the

package price, they are a bit hesitant about putting down too much money early

on. <p>

I currently ask for 50% with the balance due by a week prior to the day. But

with my packages going up, and if they get a bigger package, that might be a

little much (for some people). It seems that 50% is common, but I've also

seen absolute dollar amounts. <p>

Do you ask for an amount to cover you (and your expected gross profit) in case

the wedding is cancelled? Or just some amount arbitrarily large enough that

makes it seem like the couple is reasonably committed to you? What do you

base your retainer amount on? Do you ask for a percentage or fixed amount?

For my business the retainer is $300.00 for weddings.

1/3 on signing, 1/3 within 3 months of wedding, final 1/3 anytime prior to the wedding day.

50% of the total package is our retainer.

EXACTLY what Dave said. And here's why:

 

1/3 at booking is substantial enough that they take it seriously. It's also substantial

enough for us to be willing to hold the date and turn down other work.

 

1/3 90 days out means that if they were to cancel really close in, we would only lose 1/3

of the balance. It also gets people back to thinking about the photography; they usually

will upgrade their package at this time.

 

We do allow the balance to be paid on the wedding day, but it has to be paid before we

start shooting, so most couples go ahead and pay their balance a week or so out. This is

MUCH easier on everyone, because we don't have to chase anyone down for a check the

day of the wedding.

Since there are pre-production (meetings, checking out venue etc), production (actually shooting the wedding) and post production (editing, album design, proofs/prints etc) it wouldn't make sense to me (if I were a bride) to pay everything up front.

 

It would make a lot more sense to pay a reasonable amount as a non refundable retainer, a big chunk of the total before the wedding and the last part when the Product is done.

 

This is not catering or similar at all because their work is done at the time of the wedding.

 

The amount/percentages should IMHO be in proportion to the costs and time involved which in turn would be individual depending on paid assistants or other cost, film development, amount of photoshop work etc.

Just as with the discussions about "How do I keep the "retainer?"" questions, the right answer is to work it out in general with your attorney. An arbitrary amount that seems unrelated to actual work performed or materials used, etc., may be very hard to retain or to account for in mitigating damages. For example, if the difference between "Package A" and "Package B" is in the presence or extent of album products, then "1/3" of each will be different yet the amount that might need to be mitigated or accounted for would be the same, at least until the album is actually ordered, etc. You've done the same scouting, the same planning, will do the same driving, etc.

 

"Everybody does it that way." won't work because if they've checked with several, they'll have found that everybody doesn't do it that way.

I take $1000 for the retainer so that it is substantial. But it isn't usually a third so I can be paid a majority of it closer to the wedding day. I have a tendancy to go shopping when I get paid, heehee. The the rest two weeks prior.

I get from $300-$500 for the retainer depending on the size of the package. (sort of along the lines of $1/3, only it's not 1/3 for me)

A retainer can have a big impact on how easy it is for someone to make a decision about hiring you. If you ask too much, it will be difficult for a client to hire you on the spot by whipping out their checkbook or giving their credit card info. If you ask too little, you run the risk of making it easy for a client to cancel your services, leaving you high and dry without income for that date. You have to take into consideration your ideal client and their financial means, while also taking into consideration how much you would need to make ends meet if the date were cancelled and you were unable to rebook the date. There is no magic number or formula since it is different for everyone. In my business, I have found that a set amount of $800 is a balance between what I need to make ends meet in the event of a cancellation and what my clients are willing to commit to immediately regardless of what size package is chosen.

 

In short, the right answer for you should be based on the factors that affect you and your clients and not on an arbitrary figure that others use.

I take 1/3 at signing, 1/3 within a month of event and 1/3rd on delivery if product. I

undestand all of the reasons to get paid at the time of shooting but this break up has worked

best for me. So far everyone has been eager to get their images, and pay the final payment. I

like doing it in thirds, because no matter what the package price it doesn't seem

overwhelming, and even if they do cancel I am ending up with a reasonable sum, and as

someone else mentioned it is nice to make them think again about the photography shortly

before the event, and you often end up with an upgrade. All that being said, you have to

figure out what you can afford to take if your services are cancelled, which would be based

on the cost of running your buisness. this is just what's worked for me. Cheers.