Referrals From Other Vendors: Caterers And Planers

Business By lacie Updated 18 Aug 2010 , 3:02pm by costumeczar

lacie Posted 17 Aug 2010 , 7:53pm
post #1 of 12

if you get referrals from caterers and event planers do you give them a kickback? how much? i had one tell me 15-20% was standard. 20% seems kind of high to me.
please educate me icon_smile.gif

11 replies
needy2 Posted 18 Aug 2010 , 1:03am
post #2 of 12

a good planner will NOT ask for a kickback. their job is to find the best for the clients, not make the most money off their clients.

run from this planner- run fast, run far.

caterers should only get a % if you are included in the contract for the whole event, in which case you are essentially working for the caterer. if you are doing your own thing, then there should be no kickback.

Are they going to give you a kickback for sending people their way? I think not.

I had a dress shop that wanted us to be their "exclusive" cake place. We would pay them 10% of each cake order they sent us. I asked her how much we would get for each alteration/dress order we sent them. ---DEAD SILENCE----- for a good 5 minutes. I was trying so hard not to laugh. She finally said that she'd get back with me. Never heard from her again. icon_eek.gif

raise your hand if you're shocked.

pattycakesnj Posted 18 Aug 2010 , 1:19am
post #3 of 12

agree with needy2. It is a 2 way street, they refer to you and you refer to them. It is a win win situation. No money or kickback should be involved.

The_Caketress Posted 18 Aug 2010 , 1:45am
post #4 of 12

I true planner or designer does not get a kick back from your service. it is not worth the referral to end up giving them money out of your pocket or up charge the bride. I work with high end event planners frequently, and they would never ask for money in return. Adding a sweet wow factor and making their couples happy is all they should ever want from you.

Here's a blog post Preston Bailey (Famous New York Event Planner) wrote on the subject
http://blog.prestonbailey.com/2010/08/17/frequently-asked-questions-do-clients-ultimately-end-up-having-to-pay-when-there-are-commissions-involved-with-vendors/

costumeczar Posted 18 Aug 2010 , 2:36am
post #5 of 12

Never, never, never. Kickbacks are illegal in the first place, but if some planner is trying to get one from you it shows that she isn't very professional, and will just go with the highest bidder. She's not doing her clients any favors.

indydebi Posted 18 Aug 2010 , 4:32am
post #6 of 12

What costume said!! Stop using the word "kickback"!!! icon_evil.gif

A true professional planner will not expect or ask for monetary compensation for a referral. I've talked to too many of them.

Most vendors will do referrals back and forth with vendors they have built a relationship with. note..... see this month's Cake Central magazine for my article on this very topic.

the only vendors that I have a problem with are the venues, who think they should get a referral payment, even when they had nothing to do with the bride/groom finding me! icon_mad.gif And venues are the WORST about wanting payment for this. I'd love to see a revolution where the other wedding vendors reminded these venues that without cakers, caterers and photographer, etal, all they'd have is a big empty room! icon_twisted.gificon_rolleyes.gif

costumeczar Posted 18 Aug 2010 , 11:40am
post #7 of 12
Quote:
Originally Posted by indydebi

What costume said!! Stop using the word "kickback"!!! icon_evil.gif

A true professional planner will not expect or ask for monetary compensation for a referral. I've talked to too many of them.

Most vendors will do referrals back and forth with vendors they have built a relationship with. note..... see this month's Cake Central magazine for my article on this very topic.

the only vendors that I have a problem with are the venues, who think they should get a referral payment, even when they had nothing to do with the bride/groom finding me! icon_mad.gif And venues are the WORST about wanting payment for this. I'd love to see a revolution where the other wedding vendors reminded these venues that without cakers, caterers and photographer, etal, all they'd have is a big empty room! icon_twisted.gificon_rolleyes.gif




Wow, I've never come across that with the venues! It's usually the bad planners who tell bride that they can get discounts, etc. The problem that we have with venues around here is when they decide to go all in-house for everything, then charge brides extra to bring in outside vendors, but I've never heard of any kickback requests from any of them.

indydebi Posted 18 Aug 2010 , 12:40pm
post #8 of 12

A few venues that I worked with "required" a fee that was a percentage of the catering invoice. So on a $5,000 catering job, I'd have to hand over $500 to the venue.

No problem. I just added $500 to the invoice to the bride and labeled it "XYZ Venue Access Fee". If the bride doesn't want to pay it, then she takes her argument to the venue, because I am NOT playing the bad guy and making it look like MY pricing is expensive just so they can make $500 off of my work.

I've not problem with paying a Kitchen Use fee. It's expensive to set up a comm'l kitchen. But one place charged a $300 kitchen use fee *AND* started requiring a 10%-from-the-catering-invoice-fee.

This practice has to be the biggest "racket" in the wedding industry.

kansaslaura Posted 18 Aug 2010 , 12:44pm
post #9 of 12
Quote:
Originally Posted by costumeczar

Never, never, never. Kickbacks are illegal in the first place, but if some planner is trying to get one from you it shows that she isn't very professional, and will just go with the highest bidder. She's not doing her clients any favors.




Umm, yea I believe another word for that could be extortion.

costumeczar Posted 18 Aug 2010 , 1:52pm
post #10 of 12
Quote:
Originally Posted by indydebi

A few venues that I worked with "required" a fee that was a percentage of the catering invoice. So on a $5,000 catering job, I'd have to hand over $500 to the venue.

No problem. I just added $500 to the invoice to the bride and labeled it "XYZ Venue Access Fee". If the bride doesn't want to pay it, then she takes her argument to the venue, because I am NOT playing the bad guy and making it look like MY pricing is expensive just so they can make $500 off of my work.

I've not problem with paying a Kitchen Use fee. It's expensive to set up a comm'l kitchen. But one place charged a $300 kitchen use fee *AND* started requiring a 10%-from-the-catering-invoice-fee.

This practice has to be the biggest "racket" in the wedding industry.




Interesting...I haven't heard anything like that around here. (It might happen but I haven't heard of it) What the venues do is to have a list of approved outside caterers, then if the bride wants to use someone who isn't on the list they have to pay the venue an extra fee. Same for the cakes, if they don't use the in-house baker they get charged the cake-cutting fee, which can be up to $5 a serving. It certainly dissuades people from going off-list.

kansaslaura Posted 18 Aug 2010 , 2:26pm
post #11 of 12

[quote="costumeczarfor the cakes, if they don't use the in-house baker they get charged the cake-cutting fee, which can be up to $5 a serving. It certainly dissuades people from going off-list.[/quote] icon_surprised.gificon_surprised.gificon_surprised.gif

What?????

costumeczar Posted 18 Aug 2010 , 3:02pm
post #12 of 12
Quote:
Originally Posted by kansaslaura

[quote="costumeczarfor the cakes, if they don't use the in-house baker they get charged the cake-cutting fee, which can be up to $5 a serving. It certainly dissuades people from going off-list.


icon_surprised.gificon_surprised.gificon_surprised.gif

What?????[/quote]

I'm not kidding. That's the most expensive one that I know of, it's in a really upscale hotel. They refer a lot of cakes to me, though, so if I tell the bride to ask for the fee to be waived they will.

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