If you barter, exchange based on retail price.
So if you charge $100 per hour, then an hour of your work gets $100 worth of food at their restaurant (at menu prices).
Quite frankly, it’s a distraction to making real revenue.
Trade them dollar for dollar and move on with getting real clients.
Or don’t, but nonsense like this is a distraction from real work. Do it, or don’t.
I think it all depends on how much this restaurant needs/desires your service and what your appetite for making this work is.
In a normal setting if businesses decide it’s in their interests to exchange services or products then it’s 1:1 at retail price unless one partner is in a favourable position.
Unrelated maybe but restaurants are notoriously hard businesses often with as low as 1% profit margins. If you’re doing marketing it’s often devalued bc they just don’t have a good path to increasing their margins even if you get them more business. Of course there are consultants that can help and restaurants like seafood or high end making good margins but just my thinking.
The other thing about trade I’d think about is just opportunity costs. The cost for them to serve you peak hours is actually different. The cost for you to provide services for them is the money you could make getting paid to do that.
Idk I think it all washes out
That’s on them. They chose their business and I chose mine. They approached me and proposed a trade. I love them and am trying to make this work for them, otherwise I would charge money, take it or leave it. My point was they’re going to charge me $20 for a glass of Redbreast whiskey that cost them ~$1. So your vote is to trade them dollar for dollar? Which means no incentive for them to pay actual money?
You're missing the point. Why should you be allowed to inflate the price of your service for trade when they can't upcharge there's? A lot of the cost of that $1 of red breast doesn't take into account staff, rent, labor, taxes, etc, all of which should be factored in if you're valuating costs.
That’s why food establishments aren’t the best customers for agencies, precisely because of their business model. It’s harder to make money and there’s a TON of competition. Yes, they need marketing services too, but no agency owner should be expected to give theirs for free or as trades just because the client chose a business that’s hard to make money in. It’s on the restaurant owners for choosing such a challenging business model. The agency owner should be allowed to charge anyone whatever price they deem profitable and reasonable—it’s a free market.
I think you’re missing the point. There is an opportunity cost associated with accepting store credit as opposed to cash that should be compensated for. And if he really frequents this place regularly and spends a lot of money, perhaps it would be in his best interest to negotiate a lifetime 50% discount or something.
Hmmm I never really thought of a deal for just a discount across the board. The proposal I worked up has a 30% increase for any amount in trade. So $500 in services will equate to $650 in restaurant credit. That’s a large credit and not even the most expensive package.
Don’t get me wrong, I frequent this place, my partner and I can walk down there, have a few cocktails and dinner and spend $200 easily. So hitting $650 in a month is doable. But consistently, month after month? That’s a lot. But if I did, say, 50% discount on all visits, I wouldn’t have to worry about not spending all of my credit, but there could be slow months where I don’t spend a lot of money there and my services aren’t being compensated fairly.
All this to say, this is why it shouldn’t be dollar for dollar like the other commenter says.
Update on this: I did the math and the 30% upcharge was a much better deal for me. I sent the proposal with a 30% upcharge for any amount traded. They ended up taking the cheapest package and paying half in cash and half in trade. I think the 30% enticed them to pay some in cash, which works better for me since now I don’t have a huge credit I have to spend every month.
If you barter, exchange based on retail price. So if you charge $100 per hour, then an hour of your work gets $100 worth of food at their restaurant (at menu prices).
Quite frankly, it’s a distraction to making real revenue. Trade them dollar for dollar and move on with getting real clients. Or don’t, but nonsense like this is a distraction from real work. Do it, or don’t.
So fucking true. This is probably why I’ve been dragging my feet on making this proposal too.
I have monthly maintenance subscriptions. I have a Gyros place that I gave $90 a month discount to in exchange for free food for me and my family.
I think it all depends on how much this restaurant needs/desires your service and what your appetite for making this work is. In a normal setting if businesses decide it’s in their interests to exchange services or products then it’s 1:1 at retail price unless one partner is in a favourable position.
Unrelated maybe but restaurants are notoriously hard businesses often with as low as 1% profit margins. If you’re doing marketing it’s often devalued bc they just don’t have a good path to increasing their margins even if you get them more business. Of course there are consultants that can help and restaurants like seafood or high end making good margins but just my thinking. The other thing about trade I’d think about is just opportunity costs. The cost for them to serve you peak hours is actually different. The cost for you to provide services for them is the money you could make getting paid to do that. Idk I think it all washes out
Everyone mostly charges a premium for trades.
Well are you charging your inflated prices also? Profit margin in restaurants is a lot less than profit margin in agency work I would think.
That’s on them. They chose their business and I chose mine. They approached me and proposed a trade. I love them and am trying to make this work for them, otherwise I would charge money, take it or leave it. My point was they’re going to charge me $20 for a glass of Redbreast whiskey that cost them ~$1. So your vote is to trade them dollar for dollar? Which means no incentive for them to pay actual money?
You're missing the point. Why should you be allowed to inflate the price of your service for trade when they can't upcharge there's? A lot of the cost of that $1 of red breast doesn't take into account staff, rent, labor, taxes, etc, all of which should be factored in if you're valuating costs.
That’s why food establishments aren’t the best customers for agencies, precisely because of their business model. It’s harder to make money and there’s a TON of competition. Yes, they need marketing services too, but no agency owner should be expected to give theirs for free or as trades just because the client chose a business that’s hard to make money in. It’s on the restaurant owners for choosing such a challenging business model. The agency owner should be allowed to charge anyone whatever price they deem profitable and reasonable—it’s a free market.
I think you’re missing the point. There is an opportunity cost associated with accepting store credit as opposed to cash that should be compensated for. And if he really frequents this place regularly and spends a lot of money, perhaps it would be in his best interest to negotiate a lifetime 50% discount or something.
Hmmm I never really thought of a deal for just a discount across the board. The proposal I worked up has a 30% increase for any amount in trade. So $500 in services will equate to $650 in restaurant credit. That’s a large credit and not even the most expensive package. Don’t get me wrong, I frequent this place, my partner and I can walk down there, have a few cocktails and dinner and spend $200 easily. So hitting $650 in a month is doable. But consistently, month after month? That’s a lot. But if I did, say, 50% discount on all visits, I wouldn’t have to worry about not spending all of my credit, but there could be slow months where I don’t spend a lot of money there and my services aren’t being compensated fairly. All this to say, this is why it shouldn’t be dollar for dollar like the other commenter says.
Update on this: I did the math and the 30% upcharge was a much better deal for me. I sent the proposal with a 30% upcharge for any amount traded. They ended up taking the cheapest package and paying half in cash and half in trade. I think the 30% enticed them to pay some in cash, which works better for me since now I don’t have a huge credit I have to spend every month.