Kickback percentages

[Tigershark]

I shoot several leagues and my typical donation back is 10%. I was approached by a very large league that would like for me to bid but the current photographer pays them 30% plus donates all the sponsor and coaches plaques as well. For those of you that do this a lot what are you all offering back?

[asysin2leads]

I'm interested to hear what people come back with. I've heard that standard is 10-15%.

[Dennis_Hammer]

I would pass 30% and sponsor plaques are a big cut into profits and in this economy sales are and will continue to be down. And honestly never heard of 30% kickback.

[Tigershark]

thanks, I have heard of it but can't figure out how someone could afford to do both, plaques aren't cheap, I think the cheapest I have found has been around $5.00 a plaque I think it would just be too expensive, the current photographer has had the contract for 10+ years

[Nightstalker]

This seems quite high - but I guess it is all relative to the prices charged and what you can get away with.

I'd rather charge $20 at a 30% kickback than $15 at a 10% as the overall profit is greater.

In looking at the deal don't just focus on the percentages - work out the profitability and then decide if it is worth it. If anyone requires a greater share in my profits than I consider reasonable I'll just pass the cost on to the end customer in order to make sure that I make what I feel is fair.

If you don't think that the customers will buy at the price you have to sell at to make a go of the deal then pass.

[NickJushchyshyn]

Do you have information as to what the existing photographer charges for products to the families?
What their product variety like? How good is their service?
Do they cover T&I only, or also provide action coverage?
Why is the league looking for new bids?

[Tigershark]

Yes the prices are the same, products are similar except mine are more personalized, unfortunately we are not in an area where we can raise prices. Service is good and yes they do T&I only no real action although I have all but written off the action for next year as there are other areas that are more profitable. The league takes new bids every year and I am local so they contacted me, the other company is in another county, I will put in a bid but won't be able too match the 30%

[wyofizz]

Yes the prices are the same, products are similar except mine are more personalized, unfortunately we are not in an area where we can raise prices. Service is good and yes they do T&I only no real action although I have all but written off the action for next year as there are other areas that are more profitable. The league takes new bids every year and I am local so they contacted me, the other company is in another county, I will put in a bid but won't be able too match the 30%


You never know what could happen. Maybe the other guy is tired of 30% and won't go that high anymore.

[Patrick]

It ranges from photos for the year books or freebies to coaches to 10%. A lot depends on the volume of potential sales and cooperation of the league.

[Tigershark]

revenue from the shoot in 2009 was around 10K 850 kids

[EnronRocks]

Our typical kick back is 10%, but we don't do it as a donation. The highest we have gone was 20%, but it was well worth it.

30% is kind of high in my opinion, but it all really depends on the profits made. For 10K, a 30% kick back is ok, but I would try and lower it after a year or so.

[Tigershark]

EnronRocks,
What form is your 10% in for tax puposes if it is not a donation?

[wyofizz]

I plan on submitting mine as a Concession fee. As long as I have to pay the same percentage as the hot dog guys to be there I'm a concession.
Just another value added weener:D

[EnronRocks]

EnronRocks,
What form is your 10% in for tax puposes if it is not a donation?

In all honesty I don't know, we have an accountant that does all our taxes for us every year. They actually might be done as donations, but I haven't checked in on that kind of stuff since 2004. Our accountant cuts the checks and everything when it comes to kick backs. He figures out the best percentage and all that jazz.