When charging for event services, be it organizing and/or management, there are a few things to consider. Many gave their percentages and others explained how they price. All it explained is that there is no one size fits all and everybody does business in a different way. As they still try to stay in business and give quality services.
It was clear that there is alot to consider before doing your costing:
Different industries or clients expect to pay in different ways. For instance, most wedding planners charge by the hour with some upcharges for additional services. A corporate planner, on the other hand, may charge a flat fee or a per activity charge, rather than an hourly rate.
Some industries require an itemized list of estimated expenses. Make sure you know that ahead of time before submitting quotes. Figure out what type of charge is customary for the field you work in before setting your fees. A social media group of your local peers is a good place to start if you’re not sure what clients in your niche prefer or require.
Type of event
Who are you serving? If you want to serve luxury event hosts, you can’t sell on bottom-of-the barrel pricing. While there are some people of means who are looking for the least expensive option, they won’t go with cheap. They want value. It’s a subtle difference and while it might mean the same to many of us, in marketing there is a difference.
Yes, the market will dictate your rates but so will your specific niche. A celebrity party planner will charge a very different amount than someone working for a private school, even if they’re working in the same city.
Make sure to track all of your time spent on the full process when planning an event. Don’t forget the people who are also working for you. It is important that they track their time as well. Tracking time will help you to find out how much of your time you are investing, and help you allocate a dollar amount for your services.
Make sure that you are tracking your expenses and investments in regards to your business. This can be everything from maintenance equipment to expenses for your event. When you have a good perspective on how much it takes to run your business on a daily, monthly, and annual basis, it can help to provide that base amount for charging for services.
Just as living in Nairobi is more costly than living in Machakos, what event planners charge is also based on geographic area. Since an event planner can work anywhere and host events in all different markets, many set their pricing based on what the market in the city or town their client resides in will hold. If you have a client in Kenya, for instance, what they’re used to paying for a corporate event will be very different than someone in Tanzania. Set rates your clients are used to seeing.
Next week’s blog will be featuring how to calculate your costs after the above considerations.