I've recently started getting serious about my cake decorating business and as of December I will be filling my first wedding cake order! Eek!
I have a few stands and have recently purchased a couple specifically to hire for weddings. What I'm not sure of, is how to go about determining the hire / deposit prices?
I've purchased a silver stand for $170 (cheap as chips in the states but by the time you add postage to Aus.. not so much).
Should the cost of hire and security deposit be calculated based on what I paid for the item, or do you have any other suggestions?
Appreciate your help, thanks!
AHire charge: a number that you can think of that takes into account cleaning, wear and tear, packaging etc. You will only be able to hire it out x amount of times before it needs replacing if it gets badly scratched, dented or tarnished. If you have to go pick it up at the venue after the wedding you will want to include that cost (your time, petrol, etc) into the hire charge too. Deposit: the full replacement cost of the stand. If someone doesn't return it you will have to spend 170 to get another, so that should be the deposit. Some people will not like the amount but just keep repeating that they will get the money returned to them, that it is not a real cost to them if they bring the stand back. Explain why you have to charge that amount, be honest and tell them how much it costs, and most people understand.
Deposit should be FULL replacement costs, including rush postage.
Rental charge should be about 1/3 of the item's cost PLUS a daily penalty for not returning it on time, undamaged, clean, etc...
I did wonder if the deposit should cover the item, makes complete sense. I also think the 1/3 works, plus any additional transport costs etc if required. Wonderful, just what I needed - thank you so much! :)
AI charge a refundable deposit on my cupcake stand but the deposit doesn't cover the entire cost of the stand. I don't charge for the full cost becaus no one would pay it - refundable or not no bride is going to shell out $425 to use my stand. I change a deposit price of $175 to use the stand and a $50 rental fee that is non refundable.
My cake stands are pretty much the same principle. I have a refundable deposit of $100 for the stands and a $25 rental fee that is non refundable. Some of my stands are cheaper than $100 some are more. But I don't want to have a this stand is this much, this one is that much... One price makes my life easier.
How do you handle late returns?
AMy contract states that the stands must be returned no later than 3 days after the event. Every day after the 3 day mark I keep $25 from their deposit. I always email people the week of their event to remind them of this. Most couples leave the next day for their honeymoon so they need to make sure to get the stand to someone and give me that person's contact info to arrange a date/time to bring the stand back.
Aalso make sure to state that they need to return the stand...i've had clients think that I would pick it up at their house for them.
Acai0331 your late return policy is fantastic, love that idea and I will definitely be taking that on board too!
I also agree that it would be a good idea to charge a similar fee for all stands. Most of mine are just cheapish ones I have bought from homeware stores, but I've just started branching out on a few nicer ones for weddings so I suppose the price would balance out.
I've stopped charging an actual cash deposit and just take a credit card to be charged of it's not returned. I give them a dollar amount that covers the cost, shipping, and 1/2 hour of my time. I charge 1/4 of the replacement cost as the rental fee, but I like the idea of a flat rate for all, as opposed to a fee based on the cost of the stand.