Pricing Strategies for Your Event Management Business
Set your prices high, and you’ll hardly find any clients or business proposals. Set them low, and you’ll make no profit and end up losing your money. The world of a freelance event manager in Dubai requires one to make critical decisions, and how to charge is the most important of all. Having all the qualities of a good event planner isn’t everything as you will be required to investigate the market, know who you are mainly targeting, and how your services will be provided.
In the corporate world, one would not be so troubled when it comes to matters of pricing the work as this is done by a group that brainstorms ideas. Currently, many event managers prefer freelancing as it offers them more freedom than they would get from any employment.
But how do they get to price their work since they are all by themselves? Before delving into pricing, take a look at things you ought to consider first before concluding.
Factors to Consider to Set the Right Prices for your Event Management Services
1. Understand your business
Understanding everything about your business will help you to determine the best price range for your services. Having a good understanding of your business entails three things; your niche, your market, and your clients. Let us have a quick look at their breakdown below:
Who do you plan on serving? The niche that you want to specialize in greatly determines the pricing for your services. If you wish to target luxury events, the pricing should not be bottom-of-the-barrel. Moreover, it would be best not to focus on luxury events when you are just starting since the competition is high, and some of the best event management companies in Dubai mostly have a say in that sector.
However, even though you don’t want to target the luxury brands at first, you shouldn’t either go for cheap. Many clients who look for affordable services still want quality, so if you come out to them as ‘cheap,’ you may not get the deal.
The type of clientele you target is also very crucial for your decision making. For instance, in many cases, when contracted for weddings, freelance event managers in the UAE set their prices to hourly. Corporate planners, on the other hand, may charge a flat fee for their services.
If you are not sure of how to set the prices for the different clients, having a common platform such as a WhatsApp or Facebook group for your peers where you can get more insight.
It is also imperative to consider where your services are being offered. The location matters a lot since the pricing for an event happening in a big city might be higher than one occurring in the countryside.
2. Track the time being spent
Your time is very precious, and the more it is lost, the more money you lose. Ensure that you get proper compensation for all the time you put into an event. The people working under you also ought to keep track of their time. Doing this enables one to have a clearer way of setting the right dollar on their services.
3. Know all your expenses and investments
Apart from time – which is a significant investment in this business, there are other expenses and investments you put into the business which you ought to know inside out. This can range from the purchase of equipment, their maintenance, and other expenses that can be incurred.
After a month or so of working as a freelance event planner in the UAE, you will get to understand how to set the base price for your services, taking into consideration all the expenses and investments you that you have had.
4. Evaluate your profit margin
Before you set the pricing for your event, it is paramount first to evaluate your profit margin – how much you wish to make as profit on your business. This should be a margin that you are comfortable with, and your clients will not have a big problem adhering to.
Moreover, you are to evaluate your margin either annually or semi-annually as this will help you to offset the changes and adjust them accordingly in view of the cost of living.
5. Be flexible – factor in the most common ways to charge for events.
One of the biggest challenges the majority of freelance event planners in Dubai face is not knowing the correct way to charge for their services. In some cases, being flexible in terms of your payment methods is one of the ways to deal with demanding clients.
Some of the most common ways to price your services include:
- A fixed hourly rate
If you know how long the event is to take, then payment based by the hour would be an excellent method. With this type of payment, you get compensated for the time spent during the event. Some clients also pay their event organizers for the time spent in the coordination and preparation of the event.
- A flat fee
If you have taken your time to calculate all your expenses, evaluated your profit margin, and proper tracking of the time to be spent, having a flat fee charged is one of the easiest and best ways to price your work.
However, if you don’t know how to determine the value of the factors mentioned above correctly, this might not be the best method for you. This is because you will, without a doubt, take a big hit on your business.
- Percentage of profits
This is a popular method used by event planners who depend on the number of guests that attend the function, such as fundraisers. In this case, the event planner is paid with respect to how much was made during the event, in terms of percentages.
The more the attendees, the more they stand to get paid. The best way to go around this is to master certain techniques, such as how to use social media to boost attendance for an event.
Additional pieces to consider
At all times, when dealing with a client and a deal has been reached, it is always essential to have them pay you a deposit before the main event. This ensures that they are true to their word and will not try playing games at a later stage. Furthermore, it also secures the slot for them, meaning that you will not book for another client on the same day.
You should also remain firm in your pricing. Some clients will want to bargain the rates but don’t show them that you can be manipulated too easily. Remain firm, and they will also respect you.
Every project is priced differently, and you ought to do your research first before you settle on any margin. Take your time before making any major decisions in this industry. You can also join a pool of other freelance event managers in Dubai, where you will get better clients and advise on how to move forward in your business.
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