Hey y’all!!
I often see/hear a lot of questions from entrepreneurs on how to do pricing etc so I thought I’d share my method!
🚨🚨🚨 FULL DISCLAIMER 🚨🚨🚨
I went to school for Psychology not Event Planning. I’m completely self taught in this field, and own my own Event Planning/Designing business. These methods have helped and worked for me, but if you have a better method please share below in the comment to help the next person out!
Also please excuse the close-up of the video! This was my first time making content specifically for YouTube, and I didn’t think to turn the camera horizontally 😫🤦🏽♀️. I’ll do better next time promise!🤞🏽
Here’s a link to my online shop where I have a Pricing calculator tool that will do the equation I discuss in this video for you automatically. I also have a contact template, vendor agreement, consultation form, inventory tracking list and an invoice template.
[ Ссылка ]
[ Ссылка ]
Summary of video below...
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Step 1: Make a List of the Services or Products you offer
Step 2: Decide on an hourly rate for each of those services
Step 3: Calculate how many labor hours the service requires (Individual Basis)
Step 4: Calculate the total Material Cost (individual basis)
Using the following equation, figure out your base price...
Hourly Rate x Hours + Material = Base Price
Step 5: Decide on a desired profit margin
Use the following equations to figure out your final total price...
Base Price x Profit Margin = Profit
Profit + Base Price = Final Total Price
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Here’s some examples:
Event Designing:
This is where I only decorate an event.
My hourly design rate x My estimated hours to coordinate & execute + cost of material = Base Price (Wholesale)
Then...
Base Price x Desired profit margin (a good margin is 10-20%) = My Event Designing Cost (Retail)
- Example:
Unicorn Dessert Table and Custom Settings
$20 x 10hrs + $400 = $600 (Base/Wholesale)
$600 x 15% = $90 (Profit)
$600 + $90 = $690 Total Event Design Cost (Retail)
Custom Decorations:
Anything you have to build or create yourself and cannot be bought as is in a store.
Hourly Custom Decoratoon Rate x My estimated hours to make + cost of material = Base Price (Wholesale)
Then...
Base Price x Desired profit margin (a good margin is 10-20%) = Cost per custom decoration (Retail)
- Example: A Custom Centerpiece
($10 x 4 hours) + $15 = $55
$55 x 15% = $8.25
$55 + $8.25 = $63.25 Per Centerpiece
You should have a different hourly rate for each of the different services you offer....
Example:
Full Service Event Planning - $25 hr (national average via salary.com)
Event Designing - $20hr
Custom Decorations - $10hr
The less work a service requires, the lower your hourly rate can be.
And don’t lowball yourself! Sure, you will run into clients who can’t afford your services and sometimes they are not nice about it but at the end of the day if you want your business to be a profitable business, everything you offer needs to have a mathematical equation behind it to validate your pricing. If you under quote yourself, you will set the tone for your business and brand and it’s hard to get out of that space. Pay your self for your time. Paying for your time is NOT your profit. There should be gains from labor, gains from selling or renting your items, and gains from your profit margin.
Hope this helps!
Let me know in the comments below. Ask any questions for things you are unclear on, I will respond to ALL questions! And let me know what other entrepreneurial hacks you want me to share!
And as always Like, Share, And Subscribe for more content! ✌🏽😍🤤♥️💭
