Dear Preston: I am losing profit.
November 22, 2016
I am a florist that also does event design. Usually, I am responsible for supplying not only flowers but also linen, candles as needed. I often mark up these Items, to make a modest profit.
I have a client that loves my work, but she’ll like to provide her own table cloths and napkins but one’s that I choose. She is planning to rent the same linen directly from a rental company. And this of course is going to interfere with my profits. What should I do in a situation like this?
Dear Losing Profit:
I think, this is one of the problems that we are facing in the event world with quite a few of the rental companies. Surprisingly, these businesses do not mind renting directly to our clients, eliminating us, the middle man to make a profit.
I may suggest that you should ask your client if she is planning to come by the day of her wedding to the venue and install the linen that she intend to rent herself directly. If the answer is “no,” then I think, you should charge her a fee for the time and labor that is going to cost you to install.
You should remind your client that this is one of your business practice to make some profit by investing time in selecting and renting certain individual Items.
Be open in explaining the client that you understand that she’ll like to save money, but you too have to make a living, and also that you are not overcharging, only charging her for your expert advice and services.
And if I were you, I’ll never use the rental company again which is willing to rent directly to your client when they have a working arrangement with us.
What is your opinion in this case?