Opinions on insurance?

John Chiara

John Chiara

Senior
Jan 11, 2011
931
0
0
Troy, NY
Lately I have been ankle bitten on most smaller jobs I would consider.
I have a prospective new steady long term gig with one group of people. They have scheduled their first event and asked me to work for 60% of the previously discussed per show pricing.
I balked and they hired another "vendor," and here lies my question.
Is it appropriate and good business to discuss the possible hazard of not hiring an insured, incorporated production supplier?
Pushing up against this enough that it is making it difficult for me to maintain a presence at a level that is responsible.
 
Re: Opinions on insurance?

Forget them. If they come back later, deal with it at that time. Otherwise, just keep quiet and focus on other things.
 
Re: Opinions on insurance?

Rather than call out the other guys, discuss with the client that your price may be higher than others' due to the fact that you carry insurance, are a legal company, etc. They may realize it's worth hiring the 'real deal' rather than the ankle biter. The other probable outcome is that the other company screws it up, and they will call you back and pay 120% without a question.
 
Re: Opinions on insurance?

....and don't forget that being "incorporated" has nothing to do with having a legitimate business. It is just one type of business entity that may it may not be right for a particular business owner based on their discussions with the tax and legal advisors.

I have been bitten a couple times this year by a couple ankle biters to the tune of several tens of thousands of dollars. One is a small time unethical provider. The other....one of the largest providers in our state. Just because someone under bids you does not mean that they are not capable and legitimate providers. Sucks when it happens but that's just the way it is.
 
Re: Opinions on insurance?

Silas Pradetto said:
Rather than call out the other guys, discuss with the client that your price may be higher than others' due to the fact that you carry insurance, are a legal company, etc. They may realize it's worth hiring the 'real deal' rather than the ankle biter. The other probable outcome is that the other company screws it up, and they will call you back and pay 120% without a question.
Click to expand...

It's wishful thinking that clients would come back and be willing to pay your rate, even if the other company does suck it up. I've seen it happen MANY times. Company A comes in at a super low rate, and sucks it up. But they are cheaper, so sometimes they even get the gig again next time. Or, company B comes along at an even lower rate, hoping to 'show' the client what they should be getting. Either they succeed or suck it up, either way, the customer isn't paying a dime more for the event.

This comes down to your sales skills at the initial meeting. Convincing the customer that you're the ONLY provider for them, at your rates, without throwing everyone else under the bus is your goal. No, it won't happen every time, but that's what you need to be doing. And then when you get the job, you need to make sure you stand by your promises. When a customer pays full rate, their expectations are going to be higher. If they pay a discounted rate, they will let a LOT more slide. As a general rule, I find my customers are happier with my service than I am. Meaning, I always know I can do better, but they are extremely happy with the results. Helps me get better each time.
 
Re: Opinions on insurance?

I always have satisfied clients. I am having a problem getting them over some arbitrary view that what they want to do "should" cost an amount that they come up with based on no actual info on what doing a a real job costs. It is so bad that that I now have observed a $50 hurdle. From former clients who rave about my skills this is really insulting and looking for a way to figuratively slap them upside the head!
 
Re: Opinions on insurance?

In dealing with clients that represent either substantial personal investment in an event/show, or who represent commercial or institutional interests, we mention that we're fully insured (liability and workman's compensation) and offer to provide certificates of insurance with the signed contract. We will list them as additional named insureds, too.

We have the distinction of being the biggest player in our market so prospects tend to call us first and then "shop" our specification and price. Often they come back and say "well so-and-so will do the gig for $xxx, what will you do it for now?" Our answer is, "we'll cut out the insurance, halve the staff and cut 3/4 of the gear. Will that be acceptable?" "uh..... why?" "Because that's what you're getting from so-and-so. Ask them for you to be listed as an additional named insured on their policies and get back with us."

We get most of the shows after insurance comes up. If the client resists, we suggest they talk to their insurance person and/or attorney to fully understand the liability exposure they take on. Some are willing to take that risk but most are not.
 
Top Bottom