Waiting Lists, when to stop?

Lara Cannon · 09-07-2003, 09:39 PM

Hello,

I have a question about waiting lists. I have enough work to keep me busy for the next two+ years. I have three young children, and I teach art classes so it doesn't take a lot of commissions to fill up my year. I have two new potential clients that would like to commission complex/time consuming portraits, which should be good news. But I am nervous about booking myself three years in advance. I would like to raise my prices soon but the more commitments I have at my current (too low) prices the longer it will be before they go up. I also feel a little uneasy promising something so far away. A lot could happen between now and then. In the meantime, I have been requiring a 50% deposit and a signed contract to hold their place in line. Which means I have taken a lot of money for work I have yet to begin. I am worried that this does not make good business sense. Or, is it bad business to turn down work? Where do you draw the line on waiting lists, or do you?

Thank you,
Lara Cannon

Mike McCarty · 09-07-2003, 10:20 PM

You could take ten percent (with a contract) if you are more than twelve(?) months out. When they come within this twelve month schedule you contact them and collect the additional forty percent.

Your prices can be raised at any time (and I would suggest you raise yours) regardless of your prior commitments. You have contracts at some prices and some at others. As long as you don't reduce prices for the next in line you should be fine.

Cynthia Daniel · 09-08-2003, 05:04 PM

As a former portrait artist manager, I agree with what Mike says. It's time to raise your fees now. If you are uncomfortable taking money for work not yet performed, whether it's 10% or 50%, you can also deposit this into an escrow account. It is then still the client's money and you don't pay taxes on it until you withdraw the money as your own. Be sure to verify this with your CPA, as I am not one as I don't want to be responsible for giving incorrect info. But, it was that way 10 years ago.

If you start an escrow account, of course you need to have correct accounting regarding who has how much in that account.