Deposits and Retainer Fees- 4 Things They Go To
As we began this pandemic and events began to cancel, many wanted to reschedule but there were a few who asked for their money back. We understand the confusion as many think, you haven’t performed your service so why are you keeping my money? This is industry wide because often we don’t talk about the purpose of these fees.
While for planners or certain aspects of the event community, the purpose of these fees may be obvious. They are working on organizing your event, but for entertainment and on site services the purpose may not be as recognizable.
- Reserving your actual date. Whether it is equipment or services your vendors are often getting multiple requests for the same date. Your payment is a guarantee of your business for specific items or services on a specific date. Once this commitment is made your vendors have typically turned others away. While we can’t have events right now, there are other things your money goes to and has likely already been spent on.
- Overhead expenses. It may be a rent/mortgage payment, payroll, maintenance, storage of equipment, printer costs for printing your paperwork, the list goes on extensively. There are general costs to doing business that revenue has to cover or they would never get paid and the company in question wouldn’t be able to operate. Typically a good portion of the amount your paying is covering those costs in order for the vendors you work with to be able to support your event.
- Supplies. There are often supplies for your event that are not overhead costs because they directly relate to your event happening. Printer paper and ink for your photo booth, renting vehicles if needed, gas for the vehicle transporting people or equipment, cleaning supplies for specific items, refurbishing or updating equipment as it gets worn from each use, etc.
- Time. This is a big one. We all know that time is money. From calls, to emails, to prep for your event, practice time for your entertainers, the back end paperwork, staffing your event, scheduling trucks and drivers as well as setup, and beyond. The time spent on your event whether you are getting a giant connect 4 or a full picnic package is far beyond the time spent in direct contact.
All of these are costs that are covered prior to your event. So no matter who in your event you are speaking with they are working hard to make your event perfect and there are costs associated that need to be covered. It is vital to these businesses operation. With the pandemic remember to be kind, be understanding because we want to help you. That is what we are here for, but we also want to be able to help you when we are on the other side of this and can’t do it without your help.