The simplest way to evaluate your activity in organizing an event is by relating to the value you give to your time. How much would you be prepared to pay for all those benefits to your life? Probably 400 or 500 euros. What if you’re an expert? Probably from 1500 euros and up.
There are several types of budgeting for an event planning consultant and they are detailed below for you to choose the most suitable option for your work style:
1. Hourly budgeting. As you have met with lawyers, programmers or consultants, event management is an area where you can draw up a budget based on the number of hours worked. It takes a fairly clear prediction of what an event means so that you can make an accurate estimate of the hours worked.
If you are at the beginning of the road you can budget 10 hours of implementation and at the end to make an invoice for 30 hours, as it will probably be your last meeting with that client. In general, hourly rates apply for strategy and concept. Depending on the level of experience and the difficulty of implementation, you can budget between 15 and 80 euros / hour of strategy.
Another method is to budget the creation hours with a higher rate and the implementation to allocate it to a younger member of the team, for which to budget a lower rate per hour. Depending on the estimated number of hours, you will also have a general budget for event organization services. Some events can reach 200 or 300 hours of work over a longer period of time.
In this case you will have to average the costs and adjust the rate according to the number of people you will have in the team. For larger teams, which include graphics, design, PR or promotion, you will need to consider the number of hours worked by each team member. The quantification of hours worked can be done in a project management software – here you have Asana.com as a free resource or in an Excel document that you share with the client in a Google account.
2. Budgeting on the project. If the hourly evaluation of your work may seem complicated for the client, you can start from similar premises but to design a fee per project. The mechanism is the same: evaluate how much time you will allocate to that project and ask yourself what the value of your work is.
If you have 3 events to organize per month that you manage yourself from strategy to implementation and for each of them you have budgeted 1000 euros as event organization services, you can estimate that in that month you have a gross salary of 3000 euros. I am referring to the gross salary, as the amounts collected from the client are subject to taxes and duties.
If we are dealing with larger events, from which you will have to pay other people, you will need to include these costs in the final budget. This budget option is more relaxing in terms of time management. Regardless of the number of hours worked, you will get the same amount, so it’s up to you how efficient you are.
3. Percentage of the budget. Another form of payment for event organization services is the percentage of the managed budget. This option is profitable for the organizer only if the budgets exceed 10,000 euros because the responsibility and effort are quite high. The percentages you can negotiate range from 15% to 20% of your total budget.
4. Volume commission. This budgeting time involves a large volume of transactions that you have with locations and suppliers in general, but it is the most advantageous for the customer. An event organization company that constantly runs large budgets will, by default, have a substantial discount from suppliers.
Basically, on a budget of 10,000 euros from the client, the organizer negotiates with its suppliers a discount of 15% of its total. The customer is satisfied that he benefits from the help of an event organizer without paying an additional fee while the latter earns the equivalent of his fee from discounts obtained from suppliers.
Regardless of the type of budget you agree to, you need to consider that the amounts you collect are not entirely your profit. In addition to taxes, you should also consider low costs such as:
· Travel expenses
· Office supplies
· Protocol expenses
The biggest trap of an event organizer at the beginning of the road is that the enthusiasm for obtaining a contract is greater than the impulse to rationally calculate your income. Most of the time this lack of coordination leads to a lack of profit.
Courtesy: event organizer in Lahore