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How To Charge for Your Services if You Are an Event Planner?

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Events are significant as they create an engaging experience with your audience—be it your clients, trade partners in business, or social guests. A successful event begins a lasting memory that can cause individual satisfaction or reinforce the brand image for a company.

The desire to do something unique always lingers in the mind of everyone organising an event. Be it a doting father arranging his daughter’s marriage or a company’s marketing head launching a product.

Over the years, the choices in every category of services—from an event venue to food and decoration—have multiplied, leading to people seeking professional help from event management companies.

Event planning involves many variables (several of them in real-time), making it difficult for the planner to formalise the structure of charges. Considerable negotiations happen before both the client and the event planner agree.

How do event planners charge their clients?

  1. Flat rate or a project fee
  2. Percentage of expenses
  3. Commissionable rate
  4. Combination of flat and commissionable rate
  5. Other types such as hourly rate

1. Flat Rate

The flat or fixed fee (also referred to as project fee) is the most common type of charging a client for the services provided toward an event. The planner discusses all the actionable issues or points with the client and indicates the charges based on the work involved.

The planner's primary role includes organising, coordinating, and supervising all the activities linked to the event—logistics, venue, catering, decoration, accommodation, etc.

A scheme is first submitted (by the planner) for approval, which sets the ball rolling. The individual contracts of specific services like venue, catering or transportation, are finalised by the client directly in consultation with the planner.

2. Per-person Charges

Per-person flat rate is another method of charging for event planning services. Smaller events, for example, a dinner engagement or a day sightseeing tour, are often finalised on a per person rate covering the transportation, food, guide charges, admission fees, and all other applicable expenses. Events involving many guests or too many activities may not be ideal for this mode of charging. The primary issue is that the entire financial risk is with the event manager.

3. A Percentage (of Total Expenses) Based Fee

Generally applicable in smaller business or corporate events, the event planner organises the venue, food, and transportation in consultation with the client and charges a commission of 15%– 20 % on the event’s total cost.

Trust and transparency are the necessary elements for the success of this model. The client must be clear on every charge to settle the event planner's commission bill without any doubts.

4. Commissionable Rate

In this method, planners may cover their service charges by securing event activities through venues that offer commission directly. Typically travel agents operate in this manner for booking tickets, hotel accommodation, and transportation.

However, many clients do not view this method as transparent; therefore, it is not a popular practice. In this method of charging, the choice of venue/vendors depends on the planner.

The commission method may work in some cases of small gatherings of social/nonprofit organisations where the cost (of food and others) is paid by the members or attendees directly to the hotel; the planner's services get covered by the commission.

4. Combination of Flat and Commission          

Events where some of the services are on a commission basis (finalised by the planner) and the rest arranged by the client directly, the charging method is a combination of commission and fixed rate.

5. Other Methods: Per Hour Rate

Charging by the hour is not a widespread practice in India for service-related jobs. In some countries, however, the method of charging on a per-hour basis is followed.

The critical issue with this method is establishing the concept’s credibility, the quantum of the job done in one hour (by the planner), and the total time required for a client’s project. The client must accept the modalities used in deciding the total cost.

With several alternatives available, “how to bill a customer” is entirely the event manager's decision; however, commercial transactions must be in line with the specified rules.

Applicable regulations regarding billing and payments:

GST: Billing will have to be guided by the provisions of the GST Act, and the event planner should provide the client with a clear picture of the total cost implications.

For a commission-based model, the event manager must clearly understand the taxation pattern; otherwise, the planner may lose the entire margin in taxes.

Cash payment limitations: Payments by cash are not permitted beyond an allowable amount.  Planners must keep the rule in mind while negotiating with clients.

Let us now find out what skills or qualities will help planners in their business. But, before that, let us find out the work profile of event managers.

What Are the Events Handled by Event Planners?

Generally speaking, four types:

  1. Celebrations (weddings, birthdays, anniversaries, and reunions)
  2. Promotion (product launches, trade meetings, shows, incentive tours, fashion shows, etc.)
  3. Education (conferences, meetings, and fairs)
  4. Social (nonprofit fundraisers, public service gatherings, and civic events)

Individuals or families generally organise the first category while most other occasions are business or institution-related.

What Are the Services Offered by an Event Planner?

  • Creating a basic plan after due diligence with the client
  • Shortlist venue/food/entertainment/accommodation/decoration arrangements according to the overall budget, client’s specific requirements, and subsequent finalisation
  • Planning all logistics
  • Coordination and supervision of the actual event

Business Improvement Tips for an Event Planner

  1. Time management: Events are time-specific; therefore, prioritising work is critical.
  2. Communicate with clients: Clarity of understanding is crucial to succeeding in this business and a key to better rewards (or income).
  3. Keep your contacts alive and kicking: Event managers need to interact with many vendors, suppliers, and contractors. An excellent active relationship will always come in handy in times of need.
  4. Research new trends and offer better creativity to your clients: Everyone wants their events to be the best. Latest menus and trendy decorations can be a reason for higher charges (of the planner).
  5. Nurture relationship: A significant contributor to new business (of an event planner) is word of mouth. When the client is happy and satisfied, recommendations happen with authority! Keep in touch with all your clients.
  6. Take feedback positively: An event planner must attend to negative feedback on top priority for immediate course correction.

A Final Word on the Method of Charging

When you understand your business thoroughly, it becomes easy to identify the skills and strategies necessary for improvement; and developing those areas can bring fast results. An intelligent event manager will quickly understand a customer’s need and make an offer the way the client likes, and that could include the preferred style of charging too!

Also Read:

1) How to Answer the Phone Professionally at your Business?
2) How a Good Market Research Can Give You a Steady Start?
3) 10 Ways how to operate your small business easily with a smartphone
4) How to Create a Customer-Centric Culture for Your Business?

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FAQs

Q. I have just started as an event manager. What is the best method of charging for my services?

Ans. The best method depends on the suitability of a particular business. In your case, select a model that most of your customers are comfortable with and do not change the model on a case-to-case basis.

It is better to get GST registered even if you are outside the purview initially. At the cost of filing a simple nil return, you can gain credibility (customers view registered businesses as reliable, responsible); image and reputation are two vital business aspects for an event manager.

Q. What are the charges for wedding planners in India?

Ans. Weddings are a big event in India. Charges depend on the total budget (of the wedding) and the variety of events organised. Some of the high-budget weddings have an itinerary full of activities.

Typically an event planner’s fees can be anything between Rs. 1 lakh and Rs. 10 lakhs for a wedding (flat fees). However, the selection of the event management company is made based on the firm’s expertise and brand image.

Q. Does a formal certificate in event management help in higher charges/fees?

Ans. Event management is an individual business by itself. Rates are influenced by reputation, expertise, and, most importantly, your marketing and negotiating abilities. Competitor pricing is also a vital parameter in deciding your rates.

Formal training will improve your reputation, but how you promote your business and add value to events you handle will help build your brand.