As I mentioned yesterday, there are many different ways an event planner can charge for his or her services. But let’s begin by discussing the flat fee approach.
The benefit of this method is that it’s clear and direct. The client knows right from the start exactly what he’ll be paying. (You can also tell your client that you don’t accept commissions from vendors. This is usually a good selling point.)
The negative of this method, however, is that it’s difficult to gauge in advance just how much time and effort you’re going to put into your client’s event. You’re estimating. If your estimate is off, your flat fee will be, too. You can (and should) base your fee on previous jobs, but every client has different needs; there’s always the risk that you’ll end up putting in twice as much time and effort as you anticipated.
Now, yesterday I also promised I’d give you an idea of what event planners in New York City charge. But, before I reveal the going rate, I’m curious to learn what you think New York City planners cost.
Let’s say a client wants to spend $250,000 for her entire wedding. She’s inviting three hundred guests; she wants complete planning services, and she would prefer a flat fee. What do you imagine the average wedding planner in Manhattan would charge this bride?
A) $15,000
B) 25,000
C) $35,000
D) None of the above
Dear Readers, please share your guess in the comments below, and be sure to check back tomorrow when I reveal the correct answer!
PREVIOUS
George Bernard Shaw once said: “You see things and say, ‘Why?’ But I dream things that never were and say, ‘Why not?’” That quote embodies how Preston Bailey approaches every event.
Nic Hance
June 13, 2012
My guess is B!
Keisha
June 13, 2012
Preston, I am going to go with my gut and say $35,000. I was thinking $25,000 based on a show I saw with a NY Planner, but I am going to mark that up and go with $35K..
Simply Lavish Weddings & Events, LLC
June 13, 2012
My guess is C b/c it’s closer to the 15% scale. I’ve researched a lot of event planners in NY before they are overly expensive in comparison to what we’re use to here in NC.
Justine
June 13, 2012
I think the flat rate should. be 10% of the budget. So I say B.
Indira Ovalles de Fodor
June 13, 2012
The price is option B!! But believe it or not, in my country the rate is 1500 $ its too bad but the people Dont use the service too much.. For that reason made a wedding here its complicate! For me its bad, but i love my job and we are prepared more than 500 wedding in only 8 years… Its a very complicate country… Follow me on twitter friends!!! @Indiradfodor. Have a great week!!
Lyn W
June 13, 2012
Hm, I think this is a trick question again! I would say D and hazard a guess at about $75,000/£50,000.
Allison
June 13, 2012
If the bride is spending that much money in Manhattan, I would have to go with answer D. With this amount of money being spent, the planner must consider not only time but design and where the bride wants this money to be spent. We know the percentages of what they will spend on venu, food, decor, etc., but we are talking about Manhattan
Araina
June 13, 2012
I would say C 35K
Mary Spicer
June 13, 2012
D
Cheri Davis
June 13, 2012
Preston, I’m going to say “D”. NY/Manhattan prices & Time
karen
June 13, 2012
My guess will be D
Catrice Williams
June 13, 2012
I would have to say D, It seems to me that a wedding with a $250,000 budget is going to take a lot of time, effort, and detail. $35,000 just does not seem like an accurate commission given the amount of work that could be involved.
Smill
June 13, 2012
Based on your earlier blogs I would say $125,000 to fees and $125,000 to cost of products and time. As most businesses must make at least 35% margin to survive the lowest should be $87,500.
Platinum Touch Events
June 13, 2012
My guess would be D.
Shaunda
June 13, 2012
Im gonna say D … Im thinking she would go with a 18% so around $45k is what I would expect her flat fee would be.
Heather Chesnet
June 13, 2012
OMG…. NY is expensive! I am guessing B or C but even A is way more than we charge!
shary armstead
June 13, 2012
I’m going to say C because of the budget+the 300 guess.
Guess
June 13, 2012
My guess is C) $35K
america
June 13, 2012
I would have to say: C
Jenise
June 13, 2012
WHAT WOULD YOU LIKE TO SAY?
Anonymous
June 13, 2012
C
Rami
June 13, 2012
25000
Desiree
June 13, 2012
I’ll go with C) $35,000. It is Manhattan and that’s about 14% of the budget, the average rates ranging from 10% to 20%.
Amanda Scott
June 13, 2012
Preston, I agree with the clarity of the flat fee and run my business what way. But,what do we do if they tell us their budget is, for example, $75k but they end up spending over $100k. Or what if they don’t know their budget from the start? And I think the answer is B!
Michelle Barrionuevo-Mazzini (MB)
June 13, 2012
Wow I should move to NY! I’ve had a $250k. budget here in California and what I charged was slightly under $15k….granted I am sure I could of sold the client on more, but at the time it’s what I felt comfortable charging given my experience. With that said, I don’t think people are factoring in all of the other vendors and services that need to be secured in the $250k. budget, so my answer would be C, although it very well could be B and it also depends on the type of planner or company they are hiring.
Not Just A Mommy!
June 13, 2012
I would go with option b, 10% of the budget
SIMONE LEJOUR
June 13, 2012
C in Manhattan / $10000 in Colombia
DARINA SLAVOVA
June 13, 2012
25000
Tamaka Stephens
June 13, 2012
My guess would be D) None of the above
Sandra Lewis
June 13, 2012
In thie case, I think the average planner would charge $25,000 = 10% of the wedding budget.
YOUR NAME
June 13, 2012
$15,000
Janet Mohapi-Banks
June 13, 2012
REALLY loving this series on Transparent Pricing, thank you Preston. Undercharging is a particular bugbear of mine as I think it does the whole industry a terrible disservice. Although I’m fairly happy with my pricing I would love to hear your formula for costing wedding cakes; just to see how the amounts would differ.
Looking forward to the next installment, whichever sector it might be about.
Janet Mohapi-Banks
June 13, 2012
Oh, and to answer the question, I think D – none of the above. If I were a planner (which I’m not) I would charge in the region of £37,000 – £45,000 depending on the amount of different suppliers required.
Tara Roark
June 13, 2012
I would say B!
Elizabeth solaka
June 13, 2012
You are such a fancy guy. Answer: definitely D!
Jeanne
June 14, 2012
I’m torn between $35,000 and none of the above. Complete wedding service means a lot of hours,and this wedding may require 500 man-hours from start to finish (client meetings, research, mockups, actual set up and tear down of the event itself). The average planner may charge less, but there are so many variables (the client’s budget includes the dress, reception, honeymoon?) to consider I’m not sure of my answer!
kyoko
June 14, 2012
with a 250K budget–i choose B.
Nishaka
June 14, 2012
For that budget, I would say D. I’m sure in the New York area the Planner Fee would be around $50,000.
The Garden District, Naples, Fl
June 14, 2012
D….. At 25%. With a wedding that large you must be sure it is flawless.
Ricardo Rivera
June 14, 2012
D ) non of the above, minimum $ 50,000.00 U.S. dlls.
Latisha
June 14, 2012
I guess option D. I think you would charge a combination of methods. First a flat fee to book you. Then a percentage of the budget once you’ve discussed the scope of the event. Then if you had to go outside that scope I think it would move to hourly. I’m new to the industry so this is really a wild guess. I look forward to your real answer. Thank you for this series!
Ali
June 14, 2012
I would say B since it is 10%…. But where are these $250,000 clients? Mine are more like $20,000 – $30,000 for their whole wedding!
Adenike
June 14, 2012
I will say D, my guess is D.
YOUR NAME
June 14, 2012
I say B
ARJ
June 18, 2012
I would say between $25 and $35 grand for the average planner in NY. I am sure their are many planners in NY who would die to get a $250 grand client. Everyone who comes here has to remember this is not the norm for a good portion of the planners in NY. Preston doesn’t really address the non celebrity/ super wealthy clients that a good portion of us planners get. Meaning the highest we see would be a $50 grand event if that high. Personally I like it that way. Someone has to service the non overly well to do crowd. I am happy to ablige these brides and give them a beautiful wedding on their meager budgets.