Price Transparency: Event Planners Part III

June 14, 2012

preston bailey event planner kelly irwin

Yesterday, I wrote about event planners who use the flat fee method of charging. Today I want to discuss planners who charge an hourly fee.

Many years ago when I was planning my first event, I quickly realized how incredibly time-consuming planning is. I remember I was trying to arrange a meeting with my vendors and my client, and it took more than four hours to set up that one seemingly simple meeting.

This all leads me to my least favorite way of charging clients for planning services: By the hour!

How can you possibly determine precisely how many hours you spend planning an event? Do you charge clients for the many hours you spend thinking up creative ways to make their event extra exciting? Does the clock start ticking every time you answer an email or take a call? Personally, I think this method of charging is best left for lawyers.

Dear Readers, what is your opinion? For those of you who are planners and charge hourly, how did you determine what you’re worth by the hour? Please share it with us.

I also posed a question yesterday about how much you thought a NYC event planner would charge for the wedding I described. Most of you were right; the correct answer was D – none of the above. The going rate here in New York City for high-end events and weddings is complex. Typically, though, the cost is 20% of the total budget. So in the example I gave, the planning fee would be $50,000.

Next week I’ll continue my price transparency posts by writing about planners who charge a minimal fee and collect vendor commissions under the table.

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  • http://www.platinumeleganceevents.com Tori Washington

    Hourly pricing seems so tedious. There are so many details involved in planning that the last thing I would want to keep straight is hours worked. Besides, in the event of a discrepancy between planner and client, is there any real way to prove and defend your hours worked?

    I’m loving this blog topic. It’s very helpful and insightful!

    Thank you Preston!

  • http://YOURWEBSITE Elena @ SpanPlan

    To me, you should not charge by the hour. The better you are at what you do, the better your team is, the quicker things get done. Should it mean that you would make less money for the great event? No.
    Charging the percentage of the budget seems like a good idea.
    Thanks for sharing with us!

  • http://www.facebook.com/profile.php?id=1790538787 Allison

    Thank you so much for that insight!! I don’t see how a flat fee would work either. Can’t wait for more info to come.

  • http://www.raeaffairs.com Sileola

    Thank you for the very insightful topic, I think hourly pricing can be very difficult and it is hard to justify. The only thing you can maybe charge per hour for is the day of the event, the hours worked in the actual day, but in general this is a hard way to charge because most of the time even with day of coordination the work is never just on the day of. All together I don’t think this is the best way to go.

    Thank you for this very interesting blog series, I am looking forward to each post………..it is always an exciting thing to wake up and read your blog. I never know what to expect but I know I will always gain knowledge.

  • http://www.napkinwizard.com Napkin Wizard

    I love your price transparency topic! This is a valuable information. Thank you Preston and everyone for sharing.

  • http://www.watertowineweddings.com Tom @ Water To Wine Weddings

    Thank you for these posts, it’s just what we need right now. I do agree that hourly fees are way to difficult.

  • http://www.theavenuebanquethall.com The Avenue

    Great article on event planners. I will be directing my clients to it. Provides food for thought which I think my clients will appreciate.

  • http://www.pamelaseventdesign.com Pam Archer

    I need to move to NYC! I know the cost of living is higher there, but so is the profit margin. :)

    Preston, how do you determine the cost of installation and tear-down fees? Would you please share with us? Thank you in advance!

    You have done so much for us, what can we do for you?

  • http://YOURWEBSITE ARJ

    For Pam Archer

    Don’t be too enthralled with NY not all wedding planners are raking in 50 to 100 grand an event. Remembe this is Preston Bailey Celebrity and well to do planner. The average bride in NY won’t even spend 50 grand on her entire wedding. Remember Preston and some other planners are the exceptions not the norm.

  • http://www.grandillusionsweddings.com Heather Chesnet

    Hourly works for us when we are consulting only. We do not consult over the phone so have a meeting to help the bride work through her planning is easy to bill. But there is NO way we would consider charging an hourly rate for anything more than consulting!

  • http://www.simplylavishweddingsandevents.com Simply Lavish Weddings & Events, LLC

    Thank you Preston, for discussing this topic. I have a quick question that I hope you will bring up and give feedback on. How do you feel about planners who use package/flat fee pricing however use % pricing for budgets that start at a certain amount, lets say upward of $40k and above. As stated earlier by other followers, when you have a client with a very large budget, the planning details are far more complex than a wedding/event with a $20k budget. How do you feel about that type of pricing?

  • http://www.coutureweddingplanning.com.au Couture Wedding Planning

    Hello there Preston,

    Firstly I just like to say that I am in love with all the weddings that you create. You are such an inspiration. Thank-you so much for discussing this topic.

    When I first started my business 4 years ago, I started by charging my clients a flat fee for my Full Wedding Planning Services which worked well for most of my clients budgets and the client was comfortable as they new what they where up for. Sadly with clients with larger budget and more complex weddings, the flat fee did not work as well, as I was doing much more hours to complete these weddings.

    Now I find a flat fee for clients who budget are under a certain amount works well and then I charge a percentage for clients over this amount. What do you think of this way of charging Preston? I find it does not scare away the smaller and more intimate weddings but i can capture the correct revenue for the larger weddings which take much longer to plan.

    Hope to hear from you soon,

    Love From Fiona at Couture Wedding Planning

  • http://www.simplylavishweddingsandevents.com Simply Lavish Weddings & Events, LLC

    @Love From Fiona at Couture Wedding Planning

    So you’re asking the same question I asked earlier too.

  • http://YOURWEBSITE YOUR NAME

    WHAT WOULD YOU LIKE TO SAY?