Hello Guys, welcome to the 24Rentz Academy. This article hopes to teach you the “Five Ways to Charge Your Clients for An Event.”
These methods are rooted in years of experience planning events and in deep research into methods used by some of the biggest event planners around the world.
Personally, I use each of these methods for different clients or events but maintain use of one for a vast majority of my jobs. I’d advise you do the same, based on your current journey as an event planner and your client.
Six Ways to Charge Your Clients for An Event
- Hourly Rate
- Day of Work
- Flat Fee
- Michael’s Formula
Now I’d explain each of these in detail so you understand and put them into play.
1. Hourly Rate
Depending on how big you’re and how big your brand name has come to be, the hourly rate might just be perfect for you.
The Hourly Rate is a method of charging your clients for your work output on a timely basis. The client pays you a certain fee for every hour you work during and before the event, on the event.
Now, this method is mostly used in more developed countries and more advanced events. It also entails the client understanding the value of time and knowing how to calculate the total amount of time you spend setting up.
I’d advise you use this method only when your work can be measured in hours and when your client understands this too. Remember to collect money for 4 or five hours upfront so you need worry less about the balance.
Finally, note that hours worked before an event proper are usually free or charged at a lower rate than event proper hours. For beginners, a rate of $10 to $20 per hour might just be enough. For professionals like Kolony Events, a minimum fee of $30 to $60 per hour would apply.
Now as a beginner, this is a very nice plan. Personally, I used it before I even found out it was a professional method.
You collect a very small fee or nothing for the job then charge rental vendors a commision for working with you.
For this to work, you’d have to make a list of your recommended vendors to the clients. Your client is then to pay each of these vendors in person and receive the receipt.
Cause it’s your agreement, you’d collect a certain commision from each of the vendors who you recommend to the client. Then you charge the client a small amount of money to do this or even do it free.
For this to work, you’d have to have an extensive list of vendors so that your client would be obliged to pick from the various options. If he picks outside your list, then you’d lose commision for that. Also, in theory it’s important your clients know that you’re collecting commision per vendor just in case of matters that might arise.
However, with 24Rentz you can do this way easier. We give you a commision as an event planning affiliate for every rental a client does. Your job is just to refer them to use the platform and you get a 5% commision. The more you refer, the more money you make.
Note that not all vendors accept the affiliate marketing. However, we’d keep you updated on vendors who accept this and how to go about it.
3. Day of Work
Now, according to my crush Chelsea from Event Planning,
This method charges the client for the day you work as an event planner. It might be on an hourly or flat basis.
Basically, you collect payment for the event day proper, because that’s the main day you’re working. But also, you have to consider the other days you’d be working on the project.
So here’s a little trick, calculate a standard day based of work formula based on the size, niche and time you estimate you’d be working per day. With this, you’d be able to know the best pricing you should charge for an event.
This method is a highly efficient means of charging a client.
The percentage method means collecting a particular percentage of the client’s entire event budget.
This method is used universally because it ensures you and the client are both satisfied at the end of the day.
It also reduces the burden of calculating so much when planning an event. Cause a client’s budget reflects the size of persons coming, the kind of vendors and the the kind of event, using it would ensure you don’t get overcharge or undercharge.
For beginners, a 10% fee would be good whereas for professionals, 30% might just be okay.
5. Flat Fee
One of the best methods of charging your clients is the flat fee.
Flat fee means charging a particular amount for handling an event, irrespective of many other variables.
Usually, this technique is used by musicians and other creatives but is gradually gathering popularity among event planners.
Many big event planners such as Kolony Events and a host of other top event planners use this method. To ensure you do this well, create a flat fee based on planning period, upfront fees and number of guests.
Always have your flat fee formula at the back of your head so you can instantly give you client a bill. Trust me, you can lose clients by not being able to produce an instant flat fee.
Kolony Events charge a minimum of $1000 as a flat fee for every event. As a beginner, you can charge as low as ₦100. Remember this fee is free of rentals costs. It’s just for your personal event planning services.
6. Michael’s Formula
Michael’s Formula is a name I coined for my own charging method. Yes, and trust me many of my readers and students use this formula to maximum effect.
It’s a combination of all the methods listed above. This is done with maximum effect to produce a particular price for every event.
minimum flat fee + Rate per extra guest in your niche or 10% of budget + vendor commision or hourly rate per guest in your niche.
I’d explain this formula in the next post. Keep on reading this blog for a better explanation of this formula.
So here you are, with 6 methods for charging your clients. Do well to follow our subsequent articles for more detailed description on how to go about this.
Why not drop a comment below. We’d reply any questions you ask and guide you further.