From Santa Hollywood

Insight into Christmas, the Holidays and the World of Santa Claus

Setting your Fees – Based on a Rate Survey

posted by SantaTim On April - 10 - 2011 1 COMMENT

In addition to the  basic rate computing based on business expenses, there is a second way of  calculating what your local booking rate should be. 

 The second way of  establishing a rate  is to survey the market place in order to find out what you competition is charging and thus create a competitive rate.  I recommend that you do both so that you not only know that you are covering your expenses, but also collecting a fair rate in your community.

Performing a rate survey is a good way of finding out what rates your competitor/s collect.  If done correctly it will give you information on what the going rates are in your community.  From here you can decide where your rates need to be.

The simplest way to do this is to arrange for someone, possibly two persons to call your competitors, the entertainment companies, and ask them what it would cost to have a Santa visit your party.  This is called a marketing survey, or shopping survey and you ask the questions as if you were actually going to book from the other company.  

Open your local phone book and look in the yellow pages under the category “Entertainment.”  Here you should find different companies that supply DJ’s, Power Rangers, Barney, Bounce Houses, etc. 

Have someone call these companies as if they wanted to book a family visit from Santa, on a weeknight, for 15 adults and ten children.  The competitor should give you a rate.  Then your caller should ask if the rate is the same for a weekday party or possibly a weekend party.   Finally, you may want to ask if the rate is for a professional or  real bearded Santa.  The only reason I ask this last question is that some entertainment company will put a beard and suit on a twenty-year-old college student, and we all know that whether real bearded or designer bearded, a Professional Santa is usually leagues above a college student.  Now you should have the rate for either a designer Santa or a Real bearded Santas. 

A day or two later, even a week later, have someone else call the same companies and ask about a corporate party with 50 adults and over 100 kids.  Again get the rates for a weeknight and a weekend visit.  You can also ask if it is for a real bearded Santa. 

Once you have these rates, you can compare them to your first rate calculation and see if you fit into the rate survey. 

Now you have all the information you need to call those companies back and offer your services    If they tell you a Santa costs $200 then you can let them know you charge $150 and supply your own suit, insurance and background check.   And for your regular rate you can charge the one hour rate we covered in the last blog, $180.00.

Of course all of the dollar amount are all made up.  It will vary with each area of the United States, based on the number of Santas in your community, the economy and even how good you are or how great your work is. 

Good Luck!   And if you have any questions, please contact me.

© Copyright 2011, Timothy Connaghan, RealSantas.com

One Comment

  1. If your charging say $180.00 for an hour what might you charge for a half hour visit?

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