Can I get some advice...?

..."How To Break the News to your Sponsors"

Just go to them In-Person....explain that you MisCalculated and made a Mistake and you just can't afford to do the job based on your Initial Rate. Be honest and tell them when you "got out into the field on your first delivery...you discovered the delivery would take MUCH longer than you expected.

Tell them you REALLY need to charge "X" (I suggest at least 5cents ea for 5,000 HAND-DELIVERED.....$250) You can apply their initial payment towards the NEW price.

MOST people will understand....some won't and will probably want their money back. Just replace these with new clients and chalk it up to "experience".

When I look at "Pricing" my programs....I try to bring in all my costs...then add on what profit "I" would like for my effort.

Here's a REAL LIFE situation that just happened to me...where I had to "Go Back To Clients and tell them I couldn't do what they paid for";

I had signed up 3 hotels for my "TV Channel Stands"....had gotten 5 advertisers based on the number of rooms in the 3 hotels....then...when I went to 1 of the hotels to look at my "Final Proof"....the GM told me she had "changed her mind" and was going to have her "Sister" sell the ads for HER location....because her "sister" could "use the money".

I reminded her that she had SIGNED AN AGREEMENT whereby she agreed to let ME provide Tv Channel Stands for her rooms. She said she "didn't care"...her "sister" was going to do this.

Soooo...I went back to all 5 of my clients, who had all paid me based on X rooms....told them I would return part of their money OR...if they were counting on THIS hotel....I'd return ALL their money.

The result was..... I kept all the accounts.

So....just go back to your clients and explain you can't do the job for what you charged and you would return their money for the part of the job you haven't done yet....or....they could pay an additional fee which you feel is FAIR.

I think they will understand....especially if you are "humble" and "honest" and "blink your eyes a little". (just kidding)

Don Alm

[I reminded her that she had SIGNED AN AGREEMENT whereby she agreed to let ME provide Tv Channel Stands for her rooms. She said she "didn't care"...her "sister" was going to do this.)"

Boy Don, thats a rotten deal. YOU basically GAVE her the idea, and then she goes off and does it herself...and I'll bet her sister doesn;t sell many anyways.

Shows how in so many situations, people will ignore contracts they've signed when they see $$$$ signs...

Bruce

Next time,
If I were armed with a signed agreement and had already signed the ads,
it would be far less costly and troublesome to get the agreement enforced legaly by a small claims court.
Would take about 1 hour to do and cost $85, (in my area)

Don states that he gets $20 per room profit from this program, so any more than a 10 room hotel I would most certainly get the judgement in small claims court at a cost of 1 hour of time and a $85 filing fee.

You should consider this next time a person doesn't stick to their signed word.
Will save you face with current advertisers and you will get paid for the service that you provided.
Best of luck,
Jason

Apparently you haven't done much of "this" kind of business.

1) Filing a suit against a local business person ain't gonna do much fer yer "image"

and...

2) I got better things to do than fill in forms at the Courthouse and go thru the process.

YOU file the forms...pay the fee...attend the hearing...and let other biz people in town know YOU are suing another biz person. She happens to be a GM of a local motel. If word were to get around that I filed a suit against a fellow motel manager...the other GMs would avoid doing business with ME.

Thanks for the "advice"....but I will ignore this and ferget about it.

Don Alm

Originally Posted by Don Alm

Apparently you haven't done much of "this" kind of business.

1) Filing a suit against a local business person ain't gonna do much fer yer "image"

and...

2) I got better things to do than fill in forms at the Courthouse and go thru the process.

YOU file the forms...pay the fee...attend the hearing...and let other biz people in town know YOU are suing another biz person. She happens to be a GM of a local motel. If word were to get around that I filed a suit against a fellow motel manager...the other GMs would avoid doing business with ME.

Thanks for the "advice"....but I will ignore this and ferget about it.

Don Alm

***Apparently you haven't done much of "this" kind of business.***

Nope, in my area, the premium tv providers give them a real nice looking one every month.
For the smaller hotel/motels the pizza joints provide them with their exclusive ad (similar to the Pizza Hut one that you show on your site)
They don't go through a middle man such as yourself.

If the concept works in your area, great, and more power to you!

***Filing a suit against a local business person ain't gonna do much fer yer "image"***
I don't know about that, businesses sue other businesses every day and they continue to business with one another. I have worked for 3 diff law firms in my area ( at diff times) providing info on businesses that other business want to file a claim against.
If anything, I would think that it would have made this woman understand your are in business to make $ and are not going to play games.

***
I got better things to do than fill in forms at the Courthouse and go thru the process.***
That is your choice and as a business owner you can do what ever you wish.
I was simply providing you an alternative so you didn't have to go back to you clients and tell them that someone bowed out of the deal.

You stated that she was a GM which means she most likely has a boss above her that certainly wouldn't want to hear the GM signed a deal and pulled out later.

You most likely wouldn't even have to file papers or goto a hearing.
Simply by aggressively showing your cards, you could have had her honor her contract without doing anything except mentioning the possible outcome in which she could lose her job.

***YOU file the forms...pay the fee...attend the hearing...and let other biz people in town know YOU are suing another biz person. She happens to be a GM of a local motel. If word were to get around that I filed a suit against a fellow motel manager...the other GMs would avoid doing business with ME.***

I would file the papers instead of going back to 5 paid clients and telling them that the deal may not work because I didn't hold my end of the bargain.
People in business sue other buinesses al the time, its part of the "game"

Like I said above, if you show your cards knowing she is only a GM, she may re-think her decision.
I would rather do no business than back down from a GM for fear word would get out that I tried to enforce a signed contract.

You can FERGET what ever you want, however this is sound business advice, plain and simple!.
Again,
Best of luck,
Jason

I really appreciate all the care you all have taken to answer & send some good 'ol fashioned advice my way!

(Family breakup forces me to be mom & pop right now, so but I may go back to his city or may not...unknown at this time. Time will tell... ) Right now it's just really important that I meet the bills, which happy to say I AM at least doing! \0/

Thanks for everything - your advice means alot!

How are you contacting the potential advertisers (businesses)?

It's interesting to me that this thread came up now as I was thinking about this idea for myself. Secondly, I think your price is to low. $200 is fair and I'm wondering if $197 would be a magical price to test. 20 flyers in the bag.

Originally Posted by Bea

I really appreciate all the care you all have taken to answer & send some good 'ol fashioned advice my way!

(Family breakup forces me to be mom & pop right now, so but I may go back to his city or may not...unknown at this time. Time will tell... ) Right now it's just really important that I meet the bills, which happy to say I AM at least doing! \0/

Thanks for everything - your advice means alot!

Hi,
I just pick up the phone & call them...it weeds out people who aren't interested very quickly & saves the leg work of walking.

I'd like to hear how it goes if you do decide to try the $197. I would not mention how many (20) would be in your bag unless they press you about it, they are very picky about that part of it.

Please do let me know.
B