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The Magic Cafe Forum Index » » Tricky business » » Deposit? (0 Likes) Printer Friendly Version

Mysterious
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A church came to me because they were doing an outreach and they wanted me to perform at it, so I gave them a bid and they accepted.
The show is tomorrow and they are going to cancel it if it rains, and it’s probably going to rain. Now I’m up the creek without a paddle and I have wasted my Friday night waiting to see if it will rain or not.
Here is the big problem I never got paid and I never asked for a deposit.
I have learned my lesson, but I would like your advice for future shows.

Do you charge in advance for your show or ask for a deposit up front?

How would you handle this situation?
Donald Dunphy
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Victoria, BC, Canada
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Does your show contract have a cancellation policy in it? Or a rain policy?

- Donald
Donald Dunphy is a Victoria Magician, British Columbia, Canada.
Mysterious
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Well I hate to say this but I don’t have a contract, any advice what so ever on the subject would be greatly appreciated (ANY).
Matthew W
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New York
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Definitely require deposits. If you don't and you turn down a show because you are "booked" and then they cancel, you still have a portion of the cost of the show, and you don't need to pack up and go do a show.

OR you can try to get in touch with the turned down show and see if they still need a magician. So, you get a show plus extra money from the deposit!
-Matt
Mysterious
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Matt do you ask for a certain percentage or just a set fee?

What is a reasonable price to ask?
Matthew W
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I ask for $50 for birthday parties and family shows, $100 for larger shows.

Some people want 50%, but I think that is a lot.
-Matt
Jim Snack
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It's always a good idea to have a written agreement with a cancellation clause clearly spelled out. Typically, if a client cancels, they would lose their deposit, and your contract should specify your policy. However, in the real world, that can cost you a client.

Look, this is a church, probably on a limited budget, doing an outreach program, not a commercial client. If you had a contract with a cancellation clause, you could hold them to it, but it's going to hurt them. Yes, I know, you may have turned down work, and if you did, you should be compensated for the lost work.

If, however, you did not have to turn down any work, you could be a hero in their eyes and offer to apply the deposit to a future show. I would do that, particularly for a non-profit organization hosting an event for community benefit.

On the other hand, for commercial clients, I require 50% deposit and if they cancel within 14 days before the event, they are responsible for payment in full. Even though my contract specifies that I get paid in full, at times I have applied the amount to a future show in order to keep a good client, but it's my decision.

If you are going to perform for a fee and want to be treated professionally, do what the pros do and always use a written confirmation with all such important things worked out beforehand. That's just good business and it avoids misunderstandings and bad feelings on both sides.

Jim
Jim Snack

"Helping Magicians Succeed with Downloadable Resources"
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Loyal R
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Is anyone can post a contract example please.

Thanks
Dare to Dream...
Bill Nuvo
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Quote:
On 2009-04-30 23:13, Jim Snack wrote:

Look, this is a church, probably on a limited budget, doing an outreach program, not a commercial client. If you had a contract with a cancellation clause, you could hold them to it, but it's going to hurt them. Yes, I know, you may have turned down work, and if you did, you should be compensated for the lost work.

Jim


I have to disagree with this statement. Just because it is a church or any other demographic does not give a free ride ticket. They are accountable just as anyone else. Every client is a commerical client for you are a commercial business. I agree with pretty much the rest of Jim's statement. Ultimately, yes, you can make a personal decision to let the deposit go towards another event (I have done that also since I was able to make up the date).
Jim Snack
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Bill,

We really don't have a disagreement. I'm just a little more flexible with non-profits who are doing good work in the community than I am with commercial clients who have a different intent.

Jim
Jim Snack

"Helping Magicians Succeed with Downloadable Resources"
www.success-in-magic.com
Steven Steele
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I agree with Jim. I require a 50% deposit for everything I do, no exceptions. In addition, there is a contract with a cancellation clause. In it, it spells out if and how they can get their deposit back if they should cancel. However, I also have a clause that says that if the event should be canceled due to something out of either party's control (rain, car accident, whatever) my contract states that the show will be rescheduled at at date agreeable to both parties. And I am pretty flexible with non-profits. I am careful, though, as I've been stung by non-profits a few times.
Coram Deo
JeffWampler
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Bristol, TN
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Just another post to concur with Jim. Personally, I've rarely required a deposit (though in the future I think I'm leaning that way), but I've always used a contract with a cancellation policy.

Not to get off topic on contracts, but these don't have to be hard to do. Just a simple form stating the time, date, location, price, and whatever little goodies you wish to add (cancellation policies, show requirements, etc.) This just serves to be an agreement in writing so that it, as Jim says, "avoids misunderstandings and bad feelings on both sides."
Ken Northridge
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Atlantic City, NJ
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Just to through another wrinkle into this conversation, I do NOT take deposits. Never have, and can count the number of cancellations I’ve had in the past 10 years on one hand. Further more, I once had someone book me because “that other company kept bugging me for a deposit.” This policy works in very well with my overall business strategy of ‘business on a hand shake’ or ‘easy to do business with,’ etc.

Its ok if you don’t agree with me. Even my closest friends do not. Its just another example of different strokes for different folks. And I admit, I’m a little different.
"Love is the real magic." -Doug Henning
www.KenNorthridge.com
RJE
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We have a clause in our contracts for any outdoor show that basically says that we will not work in wet conditions (rain, snow, wet ground etc...). It also says that the client then needs to be aware that if the show is cancelled because of weather, by us or them, that we expect payment in full. For that reason, we also advise them that if possible, a backup venue that is protected from the weather be considered if needed.

We explain to them when making the booking that this is to protect the sound equipment and props that we will be using during the show, as well as being a safety consideration since electricty will be used.

We do not discuss the topic of rescheduling and this would not be possible with the majority of our clients who book us for outdoor shows. The smaller clients being weekend festivals or fairs. The larger clients, seasonal attractions and exhibitions, already having their entertainment booked solid and there would be little or no room for rescheduling.

We have not had any difficulty with this approach.
Destiny
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Quote:
I do NOT take deposits. Never have, and can count the number of cancellations I’ve had in the past 10 years on one hand


I also do not take deposits, and have had the same experience with cancellations as Ken.

Also the cancellations were all understandable.

But I insist, if Ken is a little different, I am even more different. Smile

Destiny
abbylondon
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Here's a link to the contract that I use. It spells out a cancellation policy, retainer, and a deadline for returning the paperwork to me. Hope it helps.

http://www.abbylondon.com/Birthday%20Party%20Agreement.pdf
Mysterious
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Thank you all for your advice and help.

The show went on after all, and it went great as well they loved it.

I will take into consideration all that you have said.
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