I am a small sound company owner and I also work as a volunteer on the sound crew at my church. My problem is that my church is planning an outdoor concert event and I have agreed to provide the production support for the show, with the understanding that I would be paid for my services. While attending a concert planning meeting, we were discussing all the different aspects of the event including some sponsorships that we plan to get from local businesses. At this point in the meeting, someone turns to me and says, "Hey, you could donate a thousand dollars as a sponsor and bring your equipment for free. You'll get your name on the back of the t-shirts we're having made." This put me in a very awkward position. While I generally do my part to support the church financially, I'm still trying to run a business and make a living here. I'd like to help, but I'm already thinking about my expenses on this show. What do you suggest in this situation? Emilio Caetano
Ticonderoga, N.Y.
Brian: I'm going to take a shot in the dark here, but I'm guessing that your pastor receives a salary for the work that he does at the church. He has to pay his mortgage and feed his family, so he is compensated for his time. He has a career in the ministry. You have a career in the audio industry, and you have to pay your bills too. While it is appropriate to support your church and help out with Sunday morning services, you can't always take a business loss to make something happen at church.
I know that if I did what was suggested for you to do, I would cause financial problems for my company. As much as I would like to have an abundance of extra money that I could give to my church and other worthy causes, the fact is that just because I am a business owner doesn't mean that I am rolling in cash. I would suspect that most small sound companies have some portion of their equipment financed through credit cards, bank loans or even the evil home equity line. The reality is that you probably don't have the financial strength to donate the costs of doing the show, let alone a thousand dollars beyond that. I know that some of the regional companies in my area will occasionally donate or discount the use of a system to certain non-profit clients, but they have the financial wherewithal to do so. To some extent, they need to make such donations to help ease their tax burdens.
For me, I just couldn't do what they have asked of you. I think that I would tend to still charge them for the equipment and the labor of the other personnel that you provide, but you may want to consider donating your personal time on the event. You can still make the event happen without losing money that your business will spend in rentals, labor, transport and general wear and tear on equipment. So you can give them a little bit of a break without selling yourself short. Just tell them to go get a quote from a company outside of the church. Your competitor will look at it like any other show. They're in business to make a living, and so are you. Stick to your guns on this one.
Paul: I agree with you Brian. I know that the Lord says to share your talents, but sharing that hurts your business and family is not what I think is meant. If you want to share your knowledge to teach someone how to tune a room or mix a show that is a wonderful thing. If you can discount the gear and still make a living that is a great thing. A better idea is to have someone sponsor your costs so that both can help out and not hurt your business and family. I have done shows like this and it is never a great experience. The recipients don't appreciate what you have done and the performers just try to push you around because they don't understand what you are doing. The audience will never know what sacrifice you have made to make the show happen. Of course you don't want to blow your own horn, but it is nice to get a thank you and some appreciation for what you brought to the table. I have found it better to just donate time and not personnel or gear.
Brian: Yeah, a large percentage of my clients are actually non-profit groups. Some are churches, others are schools, some are even local social clubs. But regardless of who the client is, you still need to earn a living, not earn a tax deduction. Sometimes it makes good tax sense for the big guys to earn a tax deduction, but that just doesn't work at our level of business.
Last summer, I began to make it part of my regular sales routine to recommend that my new clients seek sponsorship for their events. I don't pull this card out the first time I speak with them, but when they get the price quote and start to moan about how it's soooo expensive, and how they're a non-profit, and how they are doing this event, but they don't have any budget for it, and its really a fundraiser, so they are trying to make money, not spend it–boy, have I heard every excuse– that's when I suggest that they look for some sponsors for their event and offer advertising to the sponsors at the event.
My other tactic is to leave myself some negotiating room in my price. But you don't really want to do this unless you have that gut feeling that they will ask for a discount. Sure, you might wind up with some clients who don't argue the price and you might make the extra cash here and there, but you don't want to get a reputation of being overpriced. That will hurt your business more in the long run.
Paul: The best thing to do, as you have pointed out Brian, is to be honest and keep on making a living. It is a little like the chicken donating an egg, and not the pig donating a ham. We still want to be viable for the next event and really be helpful over the long haul to our churches. It is the best policy to be fair and to be honest.
Brian: And, while being fair to the church may mean donating our personal time (which you mentioned you do anyway), being fair to yourself means not losing money or going into debt to do something for the church. And being honest includes being open enough with your fellow congregants to say, "I'm not in a financial position to help fund this event. Maybe someone who is could help defray the church's cost of producing the event." And don't let your honesty stop with your church. Your other clients will appreciate it too.
By being honest and upfront, I saved a potential client a bunch of her time when I told her, "I really can't bid competitively on your show and meet your budget. I would have to cross-rent a lot of equipment from the regional company who usually works for you." Her response was positive. She said that when I did reach a size where I could be competitive, I should let her know. The great part is that I'm almost there and I didn't lose my shirt doing work for less than I would have spent to make the gig happen.
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