Great question!!
I struggled a lot with this when I first started my business. I knew a lot about managing events and very little about running a business. I tried to pretend that the conversations about money with my clients didn't make me feel uncomfortable, but they totally did.
I wanted to make money in my business, but I was also a little desperate to start booking clients. Therefore I accepted less than ideal rates in the beginning with a few clients to help build my portfolio.
Money can be a very personal matter, and determining your fee is a value that only you can establish.
Before I jump into the suggestions for rate structures I want to offer one piece of advice.
Whatever you decide on for your fee, be confident that you deserve it, because your talents, your experiences, your creativity, your organization skills, your expertise are all extremely valuable!! Know it and own it my fellow bosses. Virtual high fives!!
Okay, so now for more concrete advice, where do I start and what are the different ways to charge for my services:
Hourly Rate: In this scenario you establish the hourly rate with the client and then you track your hours and bill accordingly. On the average this can range from $25-$100 per hour and market rate will vary depending on where you live, how established your business is and the type of clients you are working with.
Flat Rate: Determine all the project tasks, calculate the hours per week that would be required to plan, execute and wrap-up the event. The rate would encompass all of your event planning services from concept to execution. This can greatly range depending on the nature of the event, how much time would be needed to coordinate all the various details and any staff you would need to help support the day of the event. In the past I have charged anywhere from $1,500 to $10,000 for event services based on a the flat rate model.
Percentage of the Event Budget: I would only recommend this structure to well seasoned planners, because it relies on your ability to create a budget outline during the contract negotiation process. Therefore you need to have experience with knowing what are the typical costs for the expenses involved with the event. This works well if you are continually working on the same types of events like weddings. This can range from 15-25% of the event budget.
Additional Revenue - Vendor commissions: Many vendors offer event planners commission (hotels, rental companies, venues, AV companies, etc.) and you can chose to pass along those discounts to the client or a receive commission check. Typically I pass those savings along to the client, so it can make room in the budget for more fun things. There is no hard and fast rule for this, so you can decide whatever works best for you.
Hopefully this helps you when creating your next proposal and contract. If you have any questions feel free to contact us at hello@theeventindustry.com
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Cheers!
Jen Singer
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