I'm so torn on discounts, I do it all the time, I don't think you could find a week in my calendar I didn't lower my price for someone.  It's a fear thing I have. 
I'm always a bit scared I'm going to run out of work.  It's not the best way to run a business.  The best financial times for me are when I'm involved with a project, like making a video and just book stuff without thinking.  In those times, I just don't have the time and don't care as much about not working, so I have more of a take it or leave it feeling.  Allthough, I would never ever say that.  
Then there are times, it's just quick money.  I often take things because I know they are only going to pay a certain amount, I'm available and hey, doing a show is better than not any day.  
If I were someone else booking me, I would not give discounts, generally most folks can afford it, I look at the price of a tank of gas, I'm worth more than two tanks of gas, I mean come on!  Often I'm just a sucker for people asking me favors, they are so nice and I really want to have me for their kids...(what to do, they love me so much!)  
I like working. I need to work for my self worth.  I need the laughter in my life.  So, I try to get as many events as I can do.  In the end, I've been given a gift of talent, and it's cool I get to do it as my living.
One day I'll have someone else answer the phone and I won't be sweet talked into lower prices.  That will happen soon I'm sure...
 
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