The event planning business is quite a daunting field. A lot of time, effort, and commitment is needed to make a successful event. Whether you’re organizing a corporate event, planning a wedding, or setting up a massive concert, professional assistance has become necessary.
That’s also the reason why the demand for professional event planning services is increasing each year. Because of this demand surge, it’s also important for event planning businesses to effectively structure their payment methods.
If you’re in the event planning business, it’s essential to have a solid billing process. You should know how to charge your customers for the services that you’ve rendered. At the same time, you should also know how to create an invoice for your clients. When you send your invoice and bill your clients at the right time, you can expect to get paid on time.
Event planning is quite a diverse business. Billing will depend on the type of event that you’re organizing. For instance, planning a wedding event is different from organizing a corporate conference. The items on your invoice will be different. There will also be a difference in the fees.
As a professional event planner, you should know how to charge your clients for various services that you offer. That way, you will know that you’ve earned the right amount of money equivalent to the services you’ve rendered.
What Does an Event Planner Do?
In case it isn’t clear, especially for people outside the event planning industry, this section explains just that. So, what exactly does an event planner do?
An event planner is a single person or an entire organization tasked to structure an event. This entity coordinates all the moving parts of an event and ensures everyone will have a good experience.
Meeting and convention planners do everything involved to make sure the event they are organizing goes smoothly. Their tasks include choosing the right location, hiring caterers, outline the entertainment, coordinate with other vendors, and more.
Experience of Event Planners
Event planners possess industrial experience that plays an important role while setting up charges for their services. Whether you’re a startup or veteran event planning service, you need to charge reasonably. That means you need to know your worth and the services you offer. That way, you will get paid the same amount as the services that you’ve rendered to your customers.
Established event management firms have the opportunity to charge with a good profit margin. However, keep in mind that the fees will depend on the type of customers and how much they are willing to spend for the event. To put it simply, the golden rule about event planning is to charge at just the right amount.
Charges for Event Planning and Management Services
Established event planning and management companies charge their services depending on two things: the geographical location and the season. In most cases, services done in metropolitan cities or primary locations are charged at higher rates than smaller towns and counties. If you’re a startup, consider the cost of living in a particular location before you estimate your services’ charges.
Apart from the location, the season when the event will be held will also be considered when charging fees. For example, during wedding season, even planners will typically charge extra compared to their usual price.
Expenses of Planning an Event
Before event planners prepare the bill for their clients, they will need to estimate the cost for each service they’ve rendered. As mentioned before, every event is charged differently. That’s why you need to prepare a proper estimation. However, to give you an idea, here’s a general overview of what you should be charging to your clients:
- Venue rental: Whether it’s a banquet hall or a resort, site rental fees is essential while estimating expenses for an event.
- Vendor expenses: There are many vendors that you will need to reach out to. They will require organizing an event. Their services will usually include audio, video, catering, photography, decorations, florists, and more.
- Transport and car parking – Some event planning companies will also provide guests pick up and drop facilities. If that’s the case, then transportation costs will also be included in the estimate. Even venues may also include charges for parking, so you should also keep that in mind.
- Media expenses: Event planning also involves promotional services. That includes signage and printing expenses as part of the entire service bill. Additional media expenses would also include banners, invitation cards, flyers, and much more.
- Security expenses – if you’re hosting a huge event, there will be chances that you will also need security services to keep the event orderly. If you are hiring a security agency, those costs will also be included in your estimate.
Methods of Invoicing a Client
Invoicing is another area that will also differ in terms of the type of event planning service you will provide. Other factors include the client type, location, and the season – as mentioned in the previous section.
In terms of charges, event planning services opt for either flat fees or an hourly rate. Most event planners prefer flat fees since it gives a clearer picture of the rates that were charged. In general, around 30% worth of extra bills is charged from corporate clients compared to social event clients.
Of course, you can choose to automate your invoicing process to make life easier for you and your business. It will lessen the burden of billing your clients and ensure that you get paid quickly and quickly. You can choose from the plethora of invoicing systems available online.
For instance, ReliaBills offers a comprehensive invoicing process that will help you create your invoice and send it to your respective clients. All you need is to create a FREE account, and you’re all set. Download your desired invoice template, edit the fields, choose the ideal theme for your invoice, and you’re done!
ReliaBills will aid you in creating your own professional invoices and notify you about the status of your invoices. You can even set recurring invoices and created unlimited free estimates. Create your free account today.