How to Charge for Event Planning Services
Knowing how to charge for your event planning services is a struggle many planners experience at some point in their career because there are many variables that can affect your rates.
Setting your event planning rates is one of the most important decisions you’ll make when you start your events business. You don’t want to set your rates too low and lose money and you don’t want to set your rates too high and price yourself out of getting hired for the event planning jobs.
Dermining how to charge for event planning services is one of the hardest parts of starting your business so spend time considering the market in your area, what your startup costs are and consider if you’ll charge a flat fee or an hourly rate?
How Much To Charge For Event Planning Services
When I started my event planning career, I charged an hourly rate ($75 was suitable for the year, start up costs, my location and my experience) and I took a retainer that I used against the time spent on the event. My minimum retainer (or deposit) was $2500 (roughly 33hr of work). Full payments were due 21 days prior to the event, and I had everything outlined in my contract which I had a lawyer create for me (if you don’t know a lawyer or paralegal go to Upwork.com to find one) or use this event planner contract that’s already done for you.
For each event, my intern tracked my hours and sent an invoice to the client at the beginning of each month, which was due at time of receipt. After 6 months of planning corporate events I took all the invoices and looked at the hours it took me to plan each event, which allowed me to give my clients budget estimates (time to plan their event and their overall cost).
In this week’s episode of EventPlanning BlueprintTV learn 4 items you need to consider before you determine how to charge for event planning services.
48% of Independant Event Planners Charge$50-99/hr For Their Services
After a few years of planning events, and when I started planning events with +$1,00,000 event budgets, I switched to charging my clients a 10-15% planning fee plus a 10% service fee to cover my office and misc. expenses. My event budgets were fully disclosed (I recommend this) to the client because they were responsible for paying all event vendors and outside resources.
There’s no one-size-fits-all rate card for event planners and there are variables to consider before you decide what price and fee structure is right for you.
An event planner in the Los Angeles area can charge more than an event planner in Boise, Idaho. Think of the difference in city size, per capita income and types of events these two (very different) cities would require. Using Los Angeles prices in Boise would mean a lot of days staring at your phone hoping clients call you. And, using Boise prices in Los Angeles might get you more work than you can handle and send you into the red very quickly, and possibly out of business within your first few events.
It’s important to know what price structure your area can support. Staying competitive helps you build your event planning portfolio so you grow your business and become -the- event planner to call in your city.
Feel Confident About Your Rates
It’s really important to price your services right for optimal sales, cash flow, profit margins, and branding.
Be consistent with your rates.
Be confident with your rates.
Both will show you’re a professional who knows how to get the job done, which leads to more work (and more profit) for you!
In the comments below, I’d love to hear your take on how to charge for your event planning services.
What techniques do you use to decide how to charge for your event planning services? What was the impact on sales and your overall business?
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Thank you, as always for watching and reading!