Profit Sharing Help

rogerchester

I have to bid a girls softball league for may. They asked about if i did profit sharing. I have never done any profit sharing before. I looked on line for any help couldn't find any help. I dont know what i was thinking i should have started here first. The league has 200 girls in the league. Any help would be great help for me. All sale would go through smugmug packages. thanks you guys are great

sgriggs2006

I'm not sure what profit sharing is, but I imagine its a $ that goes back to the league in exchange for you getting the exclusive rights to shoot the teams?
Typically what I have done in the past is I give back a set $ amount for each parent that places a base order....On my order-sheet, I have the base package w/ what it includes. Then, they can ala carte whatever else they want (wallets, magazine covers, etc.)
I bid the jobs based on a base package price. That way, I just count up the number of order sheets times the agreed upon "league fee".
If the parents ordered more prints in addition to the base package, that went into my pocket.
I could easily track the number or orders, but didn't have to be bothered w/ figuring percentages of total $$ to go back to the league.
Parents had to buy a base package first...they couldn't just get add-ons.

Does that make sense?
s.

GadgetRick

Typically, I donate $2 (maybe a little more) for each package purchased back to the league. They usually like this as they are always trying to raise funds for other things in the league.

I do this all of the time.

SabellaSS

Depending upon the league and who they play (i.e...neighboring towns/schools, etc...), I have agreed to 20%. I use this as a enticement for them to help promote me and my service to those visiting teams/schools. The more "we" sell, the more they make. I have also done larger Band/Color Guard Competition where the sponsoring organization asked me to simply add $1 per item to my pricing and that was their take. Same deal though, help "us" sell more and "we" make more.

Just another way to look at it if you're not doing set packages. Good Luck.

Joe

beetle8

15% of net and That comes with stipulations. I expect them to assist with promotion. Including at event PA announcements, inclusion in mailings,fliers,programs and a link on their site. I'm very clear about that up front, if I'm giving them 15% it means I am paying for something from them, if they don't want to provide that then I knock it down to 5% because all they are providing me with is access. It's in their best interest to promote you anyway, the more you sell the more they get. Most of the time that's the way they go and they do a decent job of it.

I will add that I don't take any new Spec sales events anymore, other than my established clients. I now asses each job and set a minimum amount of pre-sale going in, then sales over and above that get the 15% kickback.

zoomer

So whoever gives the biggest kickback gets the business....what a racket.
Bet you all enjoy handing over that check.....not so much....

GadgetRick

zoomer wrote: »

So whoever gives the biggest kickback gets the business....what a racket.
Bet you all enjoy handing over that check.....not so much....

Not always. I've done jobs where the league wasn't happy with the previous photog. Unfortunately, there are customers who want the most. I stray away from those.

beetle8

zoomer wrote: »

So whoever gives the biggest kickback gets the business....what a racket.
Bet you all enjoy handing over that check.....not so much....

I would disagree with that. @ 15% I am definitely lower than most. I will also cap the kickback at a certain number depending on the event.

It's no different than paying a vendor fee. as a matter of fact I much prefer the profit sharing with cap plan over paying a vendor fee. Vendor fees can be high and if sales don't go your way they don't change.

The event is providing you with a venue, a stream of customers, and marketing assistance (Should be), so it's reasonable to provide them with compensation for that.

I have a particular event that I have done 5 times over 6 years. after the second year, when everyone was picking up a camera and trying to make a buck, the event coordinators decided to offer the coverage out to bid. I stayed where I was as far as my offer. Someone else got the event. The next year they called me and asked if I was available to cover the event. I've had it for the three years since.

torags

zoomer wrote: »

So whoever gives the biggest kickback gets the business....what a racket.
Bet you all enjoy handing over that check.....not so much....

Huh???

It's a business agreement. How do you think this country is supposed to run?

Sounds like you're pretty naive and yet derogatory.

BTW.. I'm not a photog pro.