As a Planner this question comes up often from clients, if I pay you a set Package or Collection price, do you make money elsewhere?
Or if you are charging by the hour, do you track time to read an email, talk on the phone, do you count driving time, what if you get stuck in traffic? Do you charge me for that time too?
Do you take a kick-back or a commission from other wedding professionals I've hired or that you recommend?
Do you up-charge any of the proposals you send me?
Well, these are tough questions and over the next week or so we are going to talk through them, and I'd like your opinions as well. So, please post your comments...
First up, let's talk ethics, is it ethical to not tell a prospective client or a client that you are receiving a kick-back? Is it ethical to even take a kick-back? Lots of planners do (we don't and never ever ever will) but does the client have a right to know that you are receiving compensation elsewhere?
What do you think?
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2 comments:
hmmm. Very tricky. If I imagine myself as a bride again - I would probably be more interested in getting the end result I want at a price that seems fair to me, rather than in getting all the details of how money is made.
But that's not what you asked... I'd think taking kick-backs would interfere with the referral process, in that perhaps you think vendor x would be the best fit, but vendor y is recommended due to kickbacks, and hey they'd do a good job too.
Another interesting point: What about non-financial kickback, i.e. an assumption or understanding of future referrals on the part of whoever you have referred people to? Should one recommend a vendor based on the knowledge that this may then get them more referrals in return? Sometimes you know up front, like when your reception venue only works with certain caterers. If it is happening behind the scenes, would that be ethical?
Good food for thought Melissa!
In Australia it's the law. You must fully disclose all commissions.
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