“How do I charge for my event planning services?”
There are several elements that determine how to charge your clients for your event-planning services. Remember that the rates for these events would vary based on your location. Major cities usually charge higher rates than those based in small towns.
Here are the give key elements that can help you determine your rates for your services.
1) Hourly Rate
Think about what you think your services are worth and come up with an hourly rate. Your experience as an event planner will affect your decision when setting your hourly price. A new event planner has lower rates compared to those who are already at the top of the business. You can also change your rates depending on the market that you serve, whether it’s for a corporate or a social event.
2) Flat Rate
Flat rates are the most common methods of charging. With flat rates, your clients will not be surprised because you discuss the amount upfront. You and your client can focus more on the details of the event.
When you charge using this method, you present your customer with the fee for your event-planning services plus the total expenses from the vendor that you will be hiring for the event. This structure is usually used for both corporate and social events.
With this method, it is highly suggested to receive a down payment of about 50 percent once the client decides to work with you, and the remaining balance will be settled within one or 2 weeks of the event.
3) Budget Percentage
There are some event planners who charge by getting a percentage of the total budget for the event. The disadvantage with this method is that your client may not approve it. They may also question you when it comes to the billing. Usually, the percentage amount is between 15 to 20 percent of the total budget for the event. You can make your own adjustments if you feel it’s necessary.
4) On-the-day Events
There will be a time when you will be asked to plan for an event on the day itself. These usually happen on social events such as weddings. The client would usually want to avail of your services on the day of the event itself. They already have chosen their own vendors and worked with them and your task in the event is to make sure everything runs smoothly.
With this type of service, you can either charge your client per hour or charge them a flat rate. You can expect to work 8-10 hours. Preparations should still be at least one month prior to familiarize yourself with the entire event that you will be coordinating.
This type of service can be a cheaper option for the client which is why it’s becoming a more popular option for event-planning services. Although you may not anticipate to be asked to do this kind of service, it’s still okay to be prepared and be open to offer this service.
5) Vendor Commission
There are event planners who opt to charge clients with minimal service fees and depend on the commissions that they get from the vendors that they hire for the event. However, this method is something that is a bit questionable because you won’t be fully transparent with your client.
These are the key elements that you can consider when charging your client for your event planning services. Keep in mind to also monitor your total overhead expenses all the time. These expenses are comprised of non-labor expenses such as gas expenses, hiring people to help, etc. that are needed for the event. These may be just about 5% of the total budget for the event, but it’s sometimes overlooked. Make sure to monitor these expenses and include them in your rates.
