Proposals vs. Contracts
This is a question that comes up from time to time in our workshops and consults:
What is the difference between a proposal and a contract?
In a nutshell, the proposal is your bid for business. The contract is what legally binds you to provide services for your client. Let’s break these down.
The Proposal
Depending on the type of wedding business you have, you will most likely want to give the client a proposal after they have met with you in the sales consult. This is an opportunity for the client to review the information you are proposing and for you to sell them on your services. This proposal will include any and/or all of the following:
- Information about the event (couple to be married, location, date, time, and other particulars)
- What you are proposing to do for the couple:
-Your services as an event planner
-How many floral arrangements and what they will include, if you are a florist
-The scope of your design if you are an invitation designer
-What days and hours you will be present to shoot photography and special requests
- The price for your services
The proposal can get a lot more detailed and customized as you wish. You may also propose a few different options. (I recommend offering no more than 3 options.) The main job of the proposal is to summarize the findings from your consultation, describe how you will service the client, and make a “bid” to work with them. It’s also a chance for the two parties to agree on the work to be done before working through the contract. This is still part of the selling phase, so make sure to use all your star power to wow the potential client.
The Contract
The contract is what you send the client after they have agreed to your proposal. The contract is a legal document. (The proposal is not.) The contract will define all of the legalities of how the two parties will work together. (You may want to revisit our contract series here.) You will most likely include some of the information from the proposal in the scope of your contract. This will describe what you will do for the client, how, and under what time frame. The contract is a legal tool, whereas the proposal is a selling tool.
Is There a Hybrid?
Yes, there can be. Sorta. (In this case, it actually just falls into the ‘contract’ category.) If you sell a product or service that is not very elaborate or does not involve as detailed of a creative process, you will most likely use only a contract. A venue, for example, typically has only a contract. (Planners and caterers refer to this as the BEO, banquet event order.) This contract will be given to the client to review all particulars and sign.
Want to move your wedding business in the right direction? Check out The Action Plan.
Hi Michelle,
Have you ever heard of anyone charging for a proposal? I was at a wedding florist workshop last weekend and the speaker suggested that one charge a small amount, like $50, for the proposal, and state that it would be applied to the floral package when hired. it seems like a good way to make sure clients are serious and to protect my creative property from someone who is just going to take my ideas down the street and get someone else to copy them for cheap. But it also seems like a good way to scare a client off! Your thoughts?
thanks
Tobey
Hi Tobey!
Yes, I have heard of people charging for proposals. I do think it’s something to consider – especially in floral design because the proposals can be so time consuming. HOWEVER – I prefer to see a design fee instead. It’s the design and artistic work that has value (not the proposal). Your artistic talent should be valued and you should assign a price to that (e.g. the thought process that it takes to come up with a beautiful design, your artwork.) Charging a design fee not only ensures that your creative process is receiving compensation, but also that your designs aren’t being stolen/copied. If the client is scared off, then they aren’t serious about doing business with you.
Michelle
Hi Michelle,
Thanks for the post! I just found it after a Google search…
I’m wondering…I’m in the middle of a very time-consuming process with a floral design client who also may hire my coordination side of my business as well…When is enough enough? I’m worried that if I don’t somehow call an end to the proposal tweaking, that we won’t have enough time to actually get to the serious business of ordering and designing. I don’t want to scramble but the couple wants the proposal perfect before they sign. And I don’t want to set a precedent that changes can be made super last-minute, especially if they hire me as their planner as well. Any advice?
You need to let them know that you are up against a deadline and they need to finalize their decision. It’s OK to set the parameters to how YOU need to work to get your job done. (That’s what they’ve hired you for.) Also – that is a day that you have available still. In the future, it may be helpful (/I would recommend) that you put a deadline on your proposal. (7-10 days) Does that help you?