How To Structure Your Event Planning Business Fees

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Business events need a lot of preparation, including the business fees and taxes, that are part and parcel of big affairs. It is important that an events planner not only plan the business event but also the fees and taxes that he will necessarily incur because of the project. Thus, you need to begin by looking at the fees that need to be structured so that you can make the most viable profit for your thriving business. To learn how to properly structure your fees, you'll need a good understanding of the industry; you can learn this through experience or via online courses in business management.

It's important to consider establishing a fair rate for the services and thus charge accordingly for your services. If you are not aware of all of the business fees that would be needed, you may end up with serious problems come tax time. There are numerous ways to determine your rate; this should include the operating expenses and salaries as well as the profits that you stand to gain once the event is done. You need to remember that the rates are based on the location of your residence, the types of projects that you are likely to take on, and the current market rate that your clients would be willing to pay.

Of course, you also need to consider the target budget of your prospective client.  The initial quote that you submit to the client must definitely be competitive within the given parameters. After being in the business for quite a number of years, these events planners already have inside information on the types of businesses as well as the corresponding charges that they ask for different events, including separate rates for holidays or other special occasions. 

There are different ways of quoting your price to the client. For instance, let's say you want to earn an average of $75 per hour for the kind of services that you offer. One approach that you can take is to offer a "flat project fee". This assumes that the expenses are the usual ones, including the added taxes, and that as the event planner you can instantly project a flat fee that will be reasonable enough for the client and attractive enough for your firm to actually accept and venture on. Another way is to calculate a percentage of the project's total expense and then add the corresponding taxes to come up with an appropriate hourly or daily rate. 

Most of the time, clients want to know how much a project will cost as early as possible so that they can start saving money for the event, especially if they already know that they want you for the project.  While some events may have unpredictable costs, in most cases the event planner can determine a flat fee that covers potential additional costs. This requires foresight and training on the part of the planner so that you can give your clients good quotes. The client ordinarily would contact you so that you can both coordinate all the other logistics, including the catering, venue, lodging expenses and other key areas that need attention - you'll have to remember to factor in the cost of your time spent managing all of these logistics as well.

It's also important to remember that online classes in business management are extremely helpful for anyone who owns her own business - as an event planner, these courses will definitely help you plan your fees and build your company.


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