A Step-by-Step Guide to Pricing Your Event Planning Services (Updated for 2023)

Have you ever wondered how much you should charge your clients for your event planning services? Have you ever felt like you could be charging more or less for each event you organize? Have you...

Have you ever wondered how much you should charge your clients for your event planning services? Have you ever felt like you could be charging more or less for each event you organize? Have you ever agreed to work with a client who paid less and then regretted that decision? Determining the price for your event planning services can be challenging, but don't worry, it's not magic, it's a mathematical calculation. My goal is to help you build, launch, and grow your event planning business. I will guide you step by step to determine the hourly rate for your event planning services.

Step 1: Research the Prices of Your Competitors

Just like comparing prices when shopping, customers of event planning services do the same. The prices of your competitors will influence the willingness of customers to pay for your services. The idea here is not to copy the prices of your competitors but to use this information to calculate your own prices. This is one of the best ways to evaluate where your prices should start.

Before deciding on the price for your services, call and find out the prices of other event planners in your area.

According to industry experts, event planners can earn anywhere from $12 to $75 per hour, including commissions from suppliers.

After doing your research, list the three most common price ranges that event planners in your area usually quote.

Now, sit down and consider these three price ranges, considering your skills, experience, and knowledge, and choose one price range.

Remember, never price your services lower than the price ranges you found. Whether you're new to the industry or have experience, planning a wedding with a price range of $25 per hour requires the same effort as planning with a price range of $75 per hour.

Step 2: Determine Your Ideal Hourly Rate

Even if you don't use an hourly rate pricing method, you should still be able to answer the question: What is the value of one hour of your time?

To determine this, start by asking yourself how much money you want (or need) to earn in a year. From there, you can easily determine your ideal hourly wage.

On average, an event planner works between 50-60 hours per week. That's about 3000 hours a year, considering 2 weeks of vacation.

To determine your minimum hourly wage, take your ideal annual salary and divide it by 3000. For example, if you want to earn $75,000 per year, you should charge at least $25 per hour. This is the minimum price you can charge.

Try the calculation on the website below to determine your ideal hourly wage.

Step 3: Determine Your Realistic Hourly Rate

Now that we have calculated the minimum price that truly values your time (Step 2), let's increase the price.

If you are a freelancer, it is very difficult to work 60 hours a week, 10 hours a day (assuming one day off per week). In reality, most business owners find that only about 50% of their time can be billable (10 hours equivalent to 5 hours per day), while the remaining 50% of the time is spent searching for new clients, managing clients, and performing business management tasks. This means that if you want to earn $75,000 per year, you will need to increase your price to at least $50 per hour.

Try calculating your realistic hourly rate on the website below.

You now have the necessary formulas to determine the price and achieve your ideal wage or determine your ideal working hours and use it to determine the best price. Now, adjust for costs.

Step 4: Include Your Costs

After determining the wage you want to earn each year, you will need to calculate operating costs. Think about all the costs you will have to pay, from indirect costs such as internet, website operating costs, software or programs, electricity, and telephone, to direct costs such as office supplies and event insurance (take this information from your business plan!). After analyzing all the costs, remember to add them to your final price. For example, let's say the total operating cost of your event planning company is $10 per hour.

You will need to add this amount to your realistic hourly rate to determine your minimum hourly rate.

And that's how you calculate it. With this formula, you can calculate the best price for your event planning services. This will help you confidently determine the price you should charge your clients.

Before You Go...

Do you remember the random number you chose in Step 1 after reviewing your competitor's prices?

How does this price compare to your minimum hourly rate from Step 4? If it's close, then your guessing game is over!

If the price you believe you should charge is significantly lower than your minimum hourly rate, I want you to explore the reasons.

  • Are prices in your area lower than in other cities?
  • Do you lack the skills or knowledge that other event planners in your area possess?
  • Can you provide added value to customers to bridge this gap?

Put on your thinking cap!

Event Planning Caption: An event planning team in action.

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