Planning, organising, coordinating and hosting any event, be it a wedding, a live concert or corporate event is a tedious process that requires a lot of toil, patience and dedication.
And for this reason, there has been a continual upsurge for the need of event planners to coordinate events. Looking for a corporate event planner who has the same vision for your event is a challenging task, but finding one that fits within your budget is like juggling fire in front of your guests.
There are numerous factors that a corporate event planner has to factor in when charging you for their services, such as operating expenses, salaries and profits. Additionally, their rates are influenced by where their business operates, the projects they take on, and what the market is willing to take on.
So, to make your search for a corporate event planner easier, you have to be aware of their fee structure;
Fees Based On A Flat Project Rate
A corporate event planner typically charges flat project rates for packages events such as sports marketing programs. They are calculated, sometimes, on a per-person basis and with many stipulations and caveats.
The final flat project fee is determined by how much all the aspects of the entire event will cost. Typically, a corporate event planner will negotiate and calculate the cost of all services, and this will include their time and will provide a combined total of expense.
Thus, your responsibility as a client is to manage the budget, and it will require that you anticipate different scenarios that might cause situations to change. Moreover, your other responsibilities include identifying the deposits needed, paying for all services and hold the responsibility for all service agreements.
Fees Based On A Percentage Of Expenses
As part of their fee, a corporate event planner can charge between 15 – 20% of the total cost of an event. This figure is usually enough to cover their entire cost and source of profit, but this is dependent on the complexity of your program and the amount of time required to plan and execute your event.
Fees Based On An Hourly Rate
Some event planners prefer to quote an hourly rate for their services and estimate the total number of hours needed to manage and execute their client’s given program. An hourly rate may appear the same as a flat project rate, but it permits for more flexibility for both parties to make changes that will be required along the way.
Many corporate event planners will bill you hourly for their services, and it allows you to have an idea of how much their services will cost, so you calculate a reasonable budget. Thus, you have a better way to have a handle on any unexpected expenses.
A professional corporate event planner will define careful parameters around any expectations, so both parties are in agreement with the services that will be provided. Also, the corporate event planner should include a reference to the billing for all reasonable business expenses which will be incurred.
It is also crucial that you ensure when it comes to event hourly planning rates, your corporate event planner determines how frequently they will bill you for their time. When you hire a corporate event planner, you are also hiring them to provide on-site management. Thus, you will need to establish an agreement up-front where they will bill for identified services at different times and whether invoices will be submitted weekly, biweekly or monthly.
You and your corporate event planner, under this agreement will have to work out a detailed statement of work. It will include the expected responsibilities of both parties.
Fees Based On Percentage Of Expenses Plus Flat Fee/Hourly Rate
In certain instances, a corporate event planner can bill you on a rate based on a percentage of expenses. However, this might not be enough to cover their cost of total time and services, and they will present their fees at a combined cost in two different categories.
As such, the corporate event planner will carefully determine the accurate number of hours appropriately and an account to cover non-standard operating expenses, such as personal travel.
Fees Based On Commissionable Rates
One of the other ways a corporate event planner may collect fees for their services is by securing event space that offers a commissionable rate. Some event planners who will accept commissionable, but a seasoned corporate event planner will limit any planning selections that include a commissionable rate.
It is because savvier clients will question their sense of loyalties when commissionable prices are involved. If both parties accept commissioned rates, you need to ensure that the corporate event planner does not charge you fees for services by using alternative billing methods.
At Silvasale, we have a creatively experienced corporate event planner who will transform your corporate event into a spectacular occasion. Call us!