👉 Are you also finding it difficult to decide how much fees you should charge your clients for organizing an event?
👉 Do you feel that right now you are charging a higher or lower fees for organizing events?
👉 Do you want to know which model the big event planners use to decide their fees for organizing any event?
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If you want to know the answers to all or some of the above questions, then you are in the right place because we will answer all the questions given here through this blog post.
When you are going to take on the work of organizing an event from your client, sometimes you are in a state of confusion as to how much fees you should charge from your client for organizing the event.
Generally,  the fees for organizing the event is based on the  location of the event and the type of event
If you are taking up the work of organizing an event in a big city like New York or Los Angeles, then you can demand higher charges rates from the client,
Whereas if you are taking up the work of organizing an event in a small town, then you will get comparatively lower charges rates there.
The fees for event planning also depends on whether the event is personal (like a wedding) or a social or corporate event.
Today we will give you information about some models that big event planners use to decide their fees for organizing an event.
As we told you at the beginning of this blog, first of all, you have to see in which city you have the work to organize the event—is it a big city or a small town?
After this, you have to see which type of event you will organize personal, social or corporate.
After taking both of these pieces of information from the client, you will get the five most common prices quoted by the event planner in that area.
Once you get information about your competitor’s price, you have to analyze the prices of the relatives 5 competitors.
After that, you have to determine the price range of your work according to your skill, experience, and knowledge.
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| S.No | Â Competitor Price |
| 1 | Â Competitor-1 Price |
| 2 | Â Competitor-2 Price |
| 3 | Â Competitor-3 Price |
| 4 | Â Competitor-4 Price |
| 5 | Â Competitor-5 Price |
Most Common Model for Event planning fees
1. Hour Rates:
This is a transparent approach in which you charge fees on an hourly basis for organizing any event. It is suitable for unpredictable events or when you are unsure of the workload.
You should decide your hourly rates based on your event planning skills, experience and the market standards of your area.
Professional event planners earn $12–75 per hour plus vendor commissions, according to Patty Sachs.
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2. Flat Rates
In this type of approach, you can demand a flat fees from your client for organizing the event.
When you take fees from the client through a flat fees structure, two possibilities are possible.
A . Flat fees include Vendor fees
In this type of practice, you will create a single proposal that includes your service charges plus vendor hiring and managing charges.
When you take payment from the client through this fees structure, you take full responsibility for organizing the event and managing and coordinating with the vendor.
A standard vendor hiring and managing charge is 10–15% of vendor charges. For example, if a caterers charges $2000 for an event, then your hiring and managing charges from client are about $200–$250
Your fees =  your service fees (based on estimating the time you spend on event planning). + vendor hiring and managing charge + 10–20% buffer fees (In case Scope of the event goes beyond the initial details)
flat fees is equal to your fees plus the vendor’s charges
B. Flat fees exclude Vendor fees
In this type of payment structure, your flat fees solely covers your planning and coordination service, and the client himself does the entire work of payment and selection of vendors.
You only have to manage and coordinate the vendors during the event.
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Hybrid Model:
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This type of model is based on the above mentioned models, Hour Rates and Flat Rates
In this model, some work for events will be done at hourly rates, and some work will be done at flat rates.
Work-for-hour rates  : pre-event planning
Under this, securing a venue, negotiating with vendors, and creating marketing materials are included.
An hourly rate is charged for all these works. You can decide how much you will charge per hour as per your experience, skill and market standards.
Work-for-flat rates : The Day of Coordination
This is the work of onsite management, in which you will manage the entire work on the day of the event, coordinate with all the vendors, and if any problem arises during the event, then solve it and manage the guests coming to the event, etc. You will charge your client a flat rate
Example. If you are charging $25 per hour and taking 20 hours for the pre event, then you can give this type of proposal.
Planning: $25/hour (estimate work: 20 hours, total charge: $500)
Day of Coordination: flat fees of $1500 (if you are charging that amount)
Total proposal! $2000/
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Vendor Commission Model
In this type of model, you will charge fees in two way: first, you will take the charge from client for managing the event and second, you will take the fees from vendors for providing the job in event
Your fees are: base fees with client + commission fees with vendors
Since you are also taking commission as a fees from the vendor, it is important for you to give a discount to the client for their fees so they can also take advantage of it.
Important Notes
1. You have to maintain complete transparency with your client. You have to tell them that you are also taking commission from vendors for providing work in the event
2. You should have clear communication with the client.
3. You do not have to hire that vendor, who only gives you a higher commission for the event job, while you have to hire those vendors who provide quality work.
Percentage of the Event model
Some event planners prefer this model, charging the client as a percentage of their total event budget.
This type of model is widely used at large events such as corporate events, high-profile events, fundraisers, or full-service party planning.
The percentage payout structure can also motivate event planners to deliver results. Event planners typically charge 10-20% of the event budget.
Event planners need to find sponsors for corporate events. To win for both the client and themselves, they can be motivated to accomplish a goal.
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Additional consideration
(1) Whatever fees you are going to charge for organizing any event. It should justify your skills and experience.
(2) It is important to be flexible with your client when you are discussing the fees for organizing an event, and it is also important to negotiate the fees according to situation and client
(3) Your fees also depends on the location. In a big city like New York, you can get a higher rate for event planning,
whereas if you organize an event in a small town, you can get a lower fees than expected for organizing the event.
(4) You should clearly talk to your client about the payment structure. It should be as much as clear with description and mention how much fees you are going to charge for each work.
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You may also like to read: 11 Motivational Event Planning Quotes for Event Planners
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People Also Ask :
Q: What are some common methods event planners use to charge for their services?
A: Event planners often charge for their services based on an hourly rate, a flat fee for the entire event, a percentage of the total event budget, or a combination of these methods.
Q: Can you provide tips on how to price event planning services for wedding planners?
A: Wedding planners can price their services based on the complexity of the wedding, the number of guests, the services offered (such as full planning, partial planning, or day-of coordination), and the location of the event.
Q: How can I calculate my event planning fee without undercharging or overcharging?
A: To calculate your event planning fee accurately, create a pricing structure based on your expenses, desired income, market rates, and the level of service you provide. It’s important to consider all costs involved and ensure you are adequately compensated for your time and expertise.
Q: Do event planners update their pricing structure regularly?
A: Yes, event planners should regularly review and update their pricing structure to reflect changes in their expenses, market rates, the level of service they provide, and any new trends or developments in the event planning industry.
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