Some clients prefer that the event planner identify an hourly rate for services, and estimate the total number of hours to manage and execute a given client program. This may seem similar to the flat project rate; however, it allows for more flexibility on the part of both parties to adjust to changes that may be needed along the way.
Many business event planners will bill this way for services. This allows a client to know just how much money it will cost to hire your services and allow him/her to calculate a reasonable budget. The reason for this, frequently, is because they want to have a better handle on any unexpected expenses, and so that they may properly budget for total expenses on an event.
Always remember to define careful parameters around expectations so that both parties are in agreement as to what services will be provided, and event planners should include a reference to billing for all reasonable business expenses that may be incurred.
Note: some event planners may markup operating expenses such as shipping, car rentals and other miscellaneous expense items by as much as 15-20% while others do not; if you do, you should disclose such markups and obtain agreement with your client in advance.
It is also important to determine how frequently you may bill for your time.
For example, a client is hiring you in October to organize a one day seminar in March. Your services are being contracted to source and negotiate for the venue, catering services, A/V, and contribute to the content creation for a limited number of communications items (i.e., invitations, agenda, evaluation forms, etc.).
Your client is hiring you to provide on-site management. You establish an agreement up front that you will bill for identified services at different times, and will submit invoices for all services performed to date on a weekly, biweekly or monthly basis, etc.
You both work out a detailed statement of work that includes the expected responsibilities of both parties. Then, you may estimate a total budget of so many hours plus reasonable expenses (be clear on what those details may include).
Additional ways to structure event planning fees, next page.
