We have noticed two different trends within the event industry when it comes to rates and services. First, more and more planners and designers are offering event packages (with plenty of options to up-sell). Second, we are also witnessing an increase in event professionals charging an hourly rate. Marley Majcher, CEO of the Profit/Party Goddess, has been very vocal as to the advantages of charging an hourly rate. However, you need not have written a book to justify charging an hourly rate. Stephanie Frazier, owner of Rhode Island's Creating Couture Parties, details HOW she chose her hourly rate and what is a good profit margin:
I literally tracked EVERY minute it took me to work on one party and one wedding (kind of like a lawyer). I use Basecamp, which is a great resource for many things, client tracking is one of them. From phone calls, to emails, to google searching, to crafting, to driving to meetings, to shopping for materials, to in person meetings. I tracked EVERY single minute it took me to work. Which then I also had to add in overhead costs of my studio, my staff, utilities, website maintenance, business taxes, business permits, education & marketing materials.
And then, I factored all of those things in and what I feel is competitive for my area and what my experience/knowledge/expertise is worth for me to leave the house and miss some of my kids activities due to working. Phew. But doing all of that, actually made me a more efficient business owner. Being able to know where to delegate my time properly and making working for my client more efficient, and at the end of the day making a profit! To me, if you are making a 50% profit you are a rock star!
Click here to continue reading about determining your own hourly rate! If you are uncomfortable charging an hourly rate, you can build that rate into your flat rate services (e.g. event packages!). Since you have taken the time to track your time, you now know how many hours it really takes to plan an event. Build in your hourly rates with true number of hours necessary to complete the job. The last thing you want to do is continue to under-value and under-charge yourself!
For other great business tips specific to event professionals, we have numerous posts discussing networking, growing your client base, and tips to improve your overall business! Also, please pass along this helpful information by clicking on the "share button" below to share this post to your social media accounts.
For more helpful tips and everything events, please check blog.eventcompass.co daily!
EventCompass: Professional Event Planning Tools That Save You Time