Nearly all small businesses and photographers have faced some incredible challenges the last couple of months as we navigate through uncharted territories of business and everyday lifestyle. COVID-19 needs no introduction.
Given the fact that our industry is enrooted in social gatherings, we have had to completely rethink our entire way of doing business this year and beyond. Our clients, like us, are frustrated and often heartbroken that all of the time planning of a perfect celebration of been put on hold so abruptly.
And there are a number of things that need to be considered with moving forward with business. You also have to balance the relationship of the client with literally keeping a roof over your head.
Every business has their own set of business expenses. I am only speaking from a photographer’s perspective. And if you are a boutique company and only do a limited number of weddings per year, our Saturdays are truly our “inventory.” And if every couple from 2020 were to reschedule to 2021, obviously, it is not a viable business strategy if you plan to continue to do business beyond a year.
Strategy
Review your contracts and review your forecast for the year and next year (as you book 2021 dates). If you don’t already have a clear picture of what you have booked for the year, then this should be the very next thing you should do.
2020 Forecast: You’ll need to have a clear idea of what your expenses and what your income/accounts receivable look like in the pandemic era. Then you’ll have to decide what you can reasonable live off of this year and how you can ensure that you can survive and hopefully thrive in 2021.
SBA Loan/PPP Loans/Grant Applications: Have you exhausted your SBA loan options and unemployment options?
Taxes: Talk to your accountant and tax professionals for guidance and to make sure that you are fully informed on your tax liability and forecasting.
Revise or Create Rescheduling Policies: Pandemics probably weren’t referenced in your contract before; and if they weren’t, you should consider creating your new rescheduling policies for them should they occur again.
Revise Contracts: New Pandemic Language for your Contract: Create verbiage for your wedding and event contracts and add the verbiage to addendums. Consult an attorney for guidance on your local laws and ordinances, etc.
Communication
Talk to your clients. Reach out ahead of time to check-in and see how they are doing. It’s best to be pro-active rather than reactive if you can help it. Produce a list of available dates that you can have available in advance should they decide to move forward with a new date. Have a written policy and strategy for reschedules available for your 2020 clients. Also, create an addendum to add to your existing contract so that it’s a simple process. Consult an attorney for guidance.
Money Talk
Rebooking Fee –Yes or No?
You have to review your contract terms and see what applies during this situation. Beyond that, it is up to you to decide what is best for your business ethically and strategically.
A lot of us have been getting inquires from couples getting married later in 2020 that want to move to next summer or fall. And we have to make a case-by-case decision.
With that said, we do want our clients to be happy, healthy and safe on wedding day so any client that was scheduled within 30-60 days of the mandated period has been offered dates to reschedule for same year or through early spring of 2021.
Every other wedding is evaluated on the new date they are considering. Given our business model and structure, we only have a limited number of weekends (and Saturdays) to go around. Unfortunately, this pandemic has forced many of us boutique companies that do not normally book back-to-back events to accommodate the domino effect of reschedules.
Some clients simply don’t want to move forward this year and prefer to celebrate much further in the future. In these cases, we work with each couple to design a rebooking structure that is mutually beneficial so that the entire retainer isn’t forfeited. You have to decide what percentage makes the most sense and work with your clients on the revised payment structure. Consider taking the final payment on the original due date and take the rebooking fee in 2021. Or maybe it’s better for your case flow to spread it out over a course of months. Again, these are all things you consider based upon your specific business model and situation.
Optimize Their Investment
Again, every business is different and every client is different. You have to evaluate the relationship, your business viability and a number of factors behind the “black and white” contractual details.
Even though you may charge a rebooking fee, you can always make the situation a little sweeter with a little extra value on whether it be small print credit or added value to an existing album order. Or maybe you’d prefer to offer a little extra photo time. A small gesture goes a long way and sets good energy for the wedding day.
Best wishes to all of you during this time and we hope that this offered a little insight during such an unprecedented time in our industry.
Stay strong!
Cara
