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Don Alm
November 2, 2006, 03:36 PM
..."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

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