Looking for advice on overtime fees when renting out our studio.

[DrongoPhoto]

A couple of months ago some friends and I opened a photo studio in Glendale, CA. Two of us shoot there and we rent it out to people. Things are really taking off now and yesterday we ran into a situation that made us wonder what people expect when they rent a studio.

A new client made a reservation for a ten-hour shoot. They actually ended up shooting for fifteen hours, and they asked what our overtime rates were. We gave them a little discount on the normal hourly rate and they were happy, but what would YOU expect? Should our rates go down, stay the same or increase in an overtime situation (assuming the space isn't already booked by somebody else)? Is there an industry standard that I'm not aware of?

We're still learning. What have you seen out there?

Thanks,

Jeff
Shoot Studio - Home

[TPF Sponsor]

[Overread]

Overtime rates nearly always go up from the baseline rate in almost anything: Consider the two following points

1) If someone books 10 hours and then runs 5 over into the next persons booking time that causes a major disruption to that second client. Further running overtime might well push the studio past its official closing time - causing possible problems with keys, security and other factors.

2) If word gets around that overtime is less than actual booking fees then you might well get many underbooking their time slot and banking on being able to go into overtime and just pay the smaller fee for the hours.

Note you can also reward customers with extra, cheaper time if you so choose, but make it on your terms. For example if you've a gap in the booking slots contact the client before that free slot and offer them the time at a cheaper rate - its not overtime then, but you offering them discounted time that would otherwise go without anyone using it (and thus without any profit). Of course you have to get your timing right on this - don't offer too early otherwise you might end up giving the time away to a late booking

[DrongoPhoto]

Thank you. I hadn't considered point number 2 in your post. I see a New Policy in our near future.

[orljustin]

Thank you. I hadn't considered point number 2 in your post. I see a New Policy in our near future.

I'd like a half hour at the normal rate, although, I might go into 5 hours of overtime, so I'll take the cheaper rate for that! lol.

[Big Mike]

Yes, I'd also think that overtime hours should be more expensive than regular/booked time.
Time and a half comes to mind, as that is common for what companies pay employees for OT.

Although, depending on how busy you are, and how you want to handle your customer relations, you might quote them the increases OT rate, but then if they do go over...you might just charge them the regular rate. Provided that they are good customers who treat your studio with respect and will be return customers.

[KmH]

You also need a contract term that describes what happens when running over infringes on another renters scheduled rental time.

[ghache]

Lets say that if i rent a studio and the photographer that was renting before me stays there for another 5 hours and goes over my schedule and that i need to cancel my shoot i would be ****in pisssed. IMO if there is nothing else scheduled no problem but if you have another costumer renting after the first one. too bad so sad but i would have them pack thier stuff and rent another time. If you rent a studio for 10 hours and you need 15, i call that bad planning and you shouldnt have to cancel other clients because of someone else lack of planning. Or you could have them pay double for the extra 5 hours and 5 free hours for your other client. That way you dont loose money and your client get 5 free hours.

[DrongoPhoto]

All great advice. Thanks, everyone.

[Kerbouchard]

If I was booking a studio for 10 hours, I might very well prefer to pay more up front and just get it for the day, so I might add a daily rate to your price list. In other words, something to the effect of, if it is booked by another client, there are no overages allowed, period, but if the day is open, and the client overruns their allotted time, then they pay the daily rate instead.

Check out jet-ski/boat rentals. They operate on much the same business principle.

[orljustin]

Lets say that if i rent a studio and the photographer that was renting before me stays there for another 5 hours and goes over my schedule and that i need to cancel my shoot i would be ****in pisssed. IMO if there is nothing else scheduled no problem but if you have another costumer renting after the first one. too bad so sad but i would have them pack thier stuff and rent another time. If you rent a studio for 10 hours and you need 15, i call that bad planning and you shouldnt have to cancel other clients because of someone else lack of planning. Or you could have them pay double for the extra 5 hours and 5 free hours for your other client. That way you dont loose money and your client get 5 free hours.

Well, obviously, you aren't going to bump someone else out because another guy ran late.

Basically, something like:
Reserve for up to X hours at Y rate. Anything over X hours gets a discount of %20.
On day of shoot, assuming no conflict, extra hours at %10 more.
If conflict in extra hours, you're SOL. You have to vacate at scheduled time.

[Big Mike]

Or...what if you never booked more than one client per day? Rather than charge by the hour, you only charge a day rate (maybe go down to a half-day if you need to).
This way, you would never run into the problem of having one client run long into another time slot...at least not in a single day. It might still happen if the first client didn't finish up and clear out by morning.

A wedding photographer friend of mine only has one rate...for the day. If the clients hire him for the 3 hours of the wedding, they pay the same rate as someone who hires him for a 10 hour day. Obviously not the same type of thing...but it's a simple system than may work.

[ghache]

Or...what if you never booked more than one client per day? Rather than charge by the hour, you only charge a day rate (maybe go down to a half-day if you need to).
This way, you would never run into the problem of having one client run long into another time slot...at least not in a single day. It might still happen if the first client didn't finish up and clear out by morning.

A wedding photographer friend of mine only has one rate...for the day. If the clients hire him for the 3 hours of the wedding, they pay the same rate as someone who hires him for a 10 hour day. Obviously not the same type of thing...but it's a simple system than may work.

You are right, all the studio rental around here are half day, full day or full weekend