Tuesday, December 16, 2014

Be ready for the BIG job! 2/3 Price and contract

Here is the second part of my 'Be ready for the BIG job'... looking at the business side.

Before we talk about the design, let’s looks at the business side of a job like this and everything that we need to include when working out our costings. We need to make sure that we have accounted for everything!

Material Costs
Labour Costs
Other items

Material Costs - all the elements that we use to make the design, including balloons, accessories, design structure - such as Lomey products or containers.

Labour Costs that include preparation & assembly time - the time that it takes to prepare all the elements for each of the centerpieces. How many people do you need to work, how many hours of prep?

Van Hire - I will need a large van to transport as many pre-made centerpieces as possible, however, some will require ‘finishing’ on arrival.

Van loading - loading and unloading 80 centerpieces will take time, especially if you want them to arrive safely in 1 piece!

Travel time to venue

Unloading - (see van loading the same will apply).

Finishing and repair time on site - there are bound to be a few casualties so be prepared!

Parking Fee - check out parking at the venue, especially if you have a van and review any fee’s.

Refreshments - keep your troops happy, with food and drinks.

De-rig - the removal of any remaining centerpieces after the event, which will also include labour time & mileage.

If we do not include any one of these items when working out our costings we could easily under price ourselves, yes it takes time, but believe me, it is worth it!

I am working with an events organiser and not directly with the client, so my contract will be with them.

My first job was to supply the event organiser with some design ideas, that they could present to their client.

Once we agreed on the design/s, we then agreed on the cost per arrangement, at this stage don't be tempted to offer a 'guesstimated price'. The cost of your design has to include everything as listed above, from material costs all the way to de-rig, so it is very important to work out all the costs in advance to ensure that you can make a good profit once everything has been taken into consideration. Remember to use the job cost form, as this will ensure that you achieve the correct profit margin and overhead %.

If you need help with job costing your work, take a look at my blog 'How much should I charge for that'.

A contract is essential. Anyone who works without a contract needs to review their procedures. Sure it’s OK when everything goes well, but let’s face it, one day you might encounter a problem!

Terms of Contract
Client details - Name & Address
Client contact details: Email address, phone number
Event details -Venue address & event room, this is important in a large hotel that has several event rooms!
       Event Date
       Event start time 
Venue contact during set-up and de-rig.
Full description of work 
Total cost
Deposit terms
Full payment terms

Pre-set up agreement -preparation area and availability agreement
Set-up agreement 
De-Rig agreement
Cancellation policy and terms for cancellation.

Your contract is VERY important; it ensures that involved parties know areas of responsibilities and should anything go wrong, it gives you an element of protection.

If you need more help with contracts or service agreements check out my blog 'Contracts or Service Agreements as a small business do we really need them?

I will be posting "Be ready for the BIG job! 3/3 The design very soon!

Happy Ballooning


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