Wendy Rosen on thu 22 jul 99
Dear Stuart,
I don't know any show with a high booth fee that "deposits" a check then
returns the entry fee with a rejection notice.
In our case we "hold" checks until the application is reviewed. Rejection
notices are for the most part sent out in
two -three weeks. We have no fee for the "review (jury) process". Most
shows with high booth fees have a small fee to review the work and don't
accept a deposit until acceptance. Which shows were you speaking of?
Wendy Rosen
Subject: fair fees, prepaid
----------------------------Original message----------------------------
If a fair requires that you deposit the entry fee when you apply, and
returns it to you only months later with your rejection notice, they are
"riding the float." That is, they are making a profit by investing your
money while they hold it. That's what your bank does. It is what American
Express does when you buy their travelers cheques, and why they urge you to
hang onto your unused cheques until your next trip.
Can a fair make any appreciable amount of money that way? Here's a simple
example. Suppose a thousand people apply to a fair and send in their fee
of $200 six months (on average) before the day of notification
(accepted/rejected). The fair management is holding $200,000 for six
months. In that time, they can easily earn 2% on it (actually more, in
today's financial market), which will earn them $4000. Some fairs have
fees of a thousand dollars or more. Now we are talking BIG float!
Stuart Altmann
email: salt@princeton.edu office 'phone: 609/258-4520
-----------------------------
Wendy Rosen
The Rosen Group
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