Weddings on credit

Around my area S.Yorkshire UK every time you read the ads in the local paper, there are more credit co's offering

wedding photography on the tick, they are getting bookings where clients pay for the wedding photography until there

gold anniversary (what a way to start a life together) at about 30%APR. Just wondered if this was happening

anywhere else?

Im in Nottingham, and not noticed it. But it wouldnt surprise me. We are not cheap, but we dont want to break the bank for our customers either. We wont be doing this, smacks of desparation to me

Desperation? Not unless I'm misunderstanding the OP. This sounds like a new revenue stream. Instead of getting your $3k up front, you get $7k over time (or some such thing).

 

I wouldn't personally have any part in that sort of thing. But there is nothing surprising about it as every other industry has this sort of credit system for those who do not have cash up front and are not good at math.

That's shocking. A bunch of sharks I say, and should be banned. I am sure that in today's age of DSLR's, the couple would just ask a friend to take the pics instead of piling more debt upon themselves. At least I would hope so. I would much rather an amateur photograph my wedding than a professional who I would have to pay installments to at an extortionate interest rate. No thanks.

Gold anniversary? Really? How many couples are still together or even both still living fifty years after their marriage? Not to mention if you then go on for a second marriage - "sorry dear, we are going to have to limit our spend on this one, I'm still paying for the last one with Mavis".

 

Presumably there's something in the small print as there is with all credit agreements regarding responsibility to pay regardless of future circumstance.

 

But overall, a very expensive loan I would have thought. Surely there must be better loans out there for couples who wish to do their wedding using credit. A sign of the times, I think.

I actually like it. I mean, as a freelance photographer, i don't know where my next revenue is coming. It could be months before my next gig, not to mention getting paid for on the day of the event. This is true when dealing with be corporation which takes months and months to get pay me. I wouldn't mind having a couple pay me every month $80 for the next 5 years or so :). Get like 10 couples, and hey...every month you are getting roughly 1k. The problem of course is having a system to do that.

 

Every business is an organization

Every organization is an organization of systems

 

U have to have a system that would perform this 'collection'. Follow up with clients who are late. Accept different payment schemas/methods. Apply Late fee charges and so forth. I mean this is how all credit cards operate and Banks make there money. Unless you have this system, it wont work.

 

Here is an example. I meet you today (June 26th, 2008) for your wedding on May 22nd 2009. You like me and you want to book me. I tell you that my services are lets say $3000K and if you want to book the date today, you have to give me 50% down for the initial retainer. ($1500), I also tell you that prior month of your wedding, 25% of the remaining balance is due (April 2009) and the reset is due upon delivery of goods, which may take us into 2010. As you can see, the 3K is broken up into 3 years. Now that's just one price schema one may have, so wouldn't it be best to have a steady stream of income every month? i think so...

 

but i have to say that 30% APR is extreme :)

But don't you start being a bank manager rather than a photographer, Anton? I find the paperwork tedious enough, without creating even more...

I am sure you could outsource it if you were so inclined. The larger issue would likely be defaults from people who decided to stop paying after they had their photos.

>>The larger issue would likely be defaults from people who decided to stop paying after they had their photos.

 

That's easy - just hand over one photo per installment paid.

Actually it sounds like a great business idea for the photographer (seriously). The credit side is handled by one of the companies that does finance on things like furniture and white goods. The retailer gets paid up front by the credit company that then owns the debt. It looks to the customer that they owe money to Currys or House of Leather or wherever, but if you read the small print it's always some finance company. To be honest I can't imagine as a photographer why you wouldn't want to do it - once the deal is signed, it's not you that's chasing up payment, and it might get you a few more customers.

In the U.S., the only little problem would be the wedding bliss might be over and done with (a divorce, generally) before the ten-year anniversary. It would be a real legal mess as to who pays for what once the couple is no longer married!

Actually, could you translate that English into English..............

 

:-)

As i mentioned before, you have to have a SYSTEM in place to handle this right. If you dont, than it doesnt WORK!!! But this is just another add on value to your clients if you are able to offer this. Its just sets you more a part of the other guys. How well will it work? I dont know. What will it take and how much would it cost you to have a system like this in place, I dont know. Can you outsource like anything else in this world, YES.

 

Terry this a very good thread!

<i>Can you outsource like anything else in this world, YES. </i><P>

It's extremely simple to outsource: accept credit cards.<p>

When you outsource the credit they receive, you don't gain the additional revenue from the interest they pay. If you want significant extra profit, you accept the responsibilities of monthly collection and the risk of default.

I read the original question as the CREDIT COMPANIES were offering the service, NOT the Photographer.

 

As Alec Meyers has mentioned, the Vendor is actually paid the full amount, (minus a small commission), by a lending agent. The debt is then owed to the Lending Agent.

 

There are many different permutations used here: examples are `nothing to pay, no interest for 40 months` or `30% deposit no interest for 5 years`. Just like White Goods, Computers, Cameras, Exercise Bikes . . . everything.

 

The debt is free of risk, (and hassle), to the vendor of the goods / service.

 

Yes, this form a selling is being used here for Wedding Photography.

 

No, the Studio I work for does not use it.

 

No, I do not use it.

 

Yes, we both accept Credit Cards.

 

WW

As William says this is Credit Companies offering this service (they were hiring photographers a while back) so i think they are geared up to set up the credit arrangements.

 

I think they are offering this service due to the present economical "dare i say crisis" we are in (fuel, mortgage, food prices etc) here in the UK. Once money gets tight you always see all sorts of extortionate money lenders trying to get there hands on peoples cash.

 

I don't think i could do with the hassle that this involves to set it up bye myself (agent maybe)

 

I offer credit card payments and although being new to wedding photography no client as used this for payment yet.

 

Thanks for all the interesting response, i did not think this would be so popular

> i did not think this would be so popular <

 

The squeeze on funds is not limited to the Sub Prime in the USA, or Fuel and Food in the UK.

 

We all have one uniting element: the rampant thirst of the Media (aka `The News`) for Headlines.

 

:)

 

WW

Another option that falls sort of halfway between most of the above is to use a company like Virgin Money.

 

I borrowed money from my in-laws to pay off a car early, and instead am paying them back at a much lower interest

rate than I owed Nissan Motor Credit. Virgin takes a $9 fee per transaction (i.e. when I make a payment), which

I pay, and my in-laws get a monthly payment deposited directly into their checking account. Virgin takes care of

processing, chasing me down if I skip a payment, etc.

 

This could be used by a photographer who wanted to offer the service, I suppose, and would see the photographer

get paid interest. Since Virgin Credit is governed by applicable lending laws (at least in the US), you can't

charge usurious rates (in Massachusetts, more than 20 percent). It's still not an ideal solution, but it takes

the collection duties out of the photographer's hands.

 

All that having been said, I'd still prefer the money up front. It's just so much simpler all around.