The "Money" question


(Abena P) #1

Let’s talk about it. How much do you charge? How do you decide what to charge? Do rates vary depending on the sector that you are working in? Can you also say where in the world you generally work, so we can see how rates vary? Looking forward to your thoughts!


New Start Up Business & Pricing Your Services
Dealing with third party payment terms
(Belinda Booker) #2

Good question. And not only ‘how much do you charge?’ but also ‘how do you charge?’. I know there are lots of variations on the way event planners charge, such as per hour, flat management fee, commission/mark up on services etc. It would be good to know what structure people favour.


(Charlotte Noble) #3

We have a d&t hub that we have recently refurnished and are hiring out to clients of ours and prospects as well. Currently, we are not charging them for using the room, as we think it’s fair they are paying accountancy fees to us. The only thing we currently charge for is the food that people want to have when they use the room.
I didn’t really decide on how the charging came about, however, i know with prospects, if they want to use the hub, then we put loads of d&t promo material and get a guest speaking slot booked in, so one of our accountants can go in and try and make them aware of more like tax.
We are based in the United Kingdom. Not sure how much they vary compared to other parts and would love to know other people’s opinions.


(Abena P) #4

Yes I was talking to a planner recently who charged a percentage of sponsorship income, which is an interesting model that I hadn’t heard of.


(Melissa Saunders) #5

Good question and one I really worried about when I first started freelancing two and a half years ago. In that time I’ve charged by the day, by the hour, by the month and a project fee. It also depends on the nature of the project such as whether it might lead to more work, how interested I am in the project either due to the subject matter or the specific challenge involved or whether it will add a different dimension to my skillset/experience. If it’s a start up or a not-for-profit then might charge a bit less or over-service the account a bit to add value :innocent:.

I had a conversation early on with another friend who freelances and realised I was undercharging in some instances.Generally, I either get approached and told what they’re offering as part of the initial conversation or I’m asked what my day/hour rate is. I’ve had a few clients who are late payers so I try to bill for the first month when I start the project with payment requested within 28 days. Admin and chasing people for money is definitely the worst part of my job alongside doing my tax return :disappointed:.


(Belinda Booker) #6

Do you find clients generally accept your rate or try to negotiate?


(Belinda Booker) #7

Do you know if this free model has succeeded in winning you any new business?


(Charlotte Noble) #8

Currently, not a great deal as there haven’t been many events in there yet. We are still getting the word out. However, we did have a prospect in there the other day, and she said it was great to come along and see what environment we actually work in. Everyone gets shocked when they come along that we work in converted barns, so it’s great place for space for people to host meetings.
I think we will re-evaluate the pricing when the hub properly gets going.


(Belinda Booker) #9

Sounds like it could be a good extra revenue stream - good luck with it!


(Melissa Saunders) #10

Not experienced too much negotiation. A client came back and said they could afford 100 days at that rate. Sometimes if I really want the project but don’t know the client I might say between £x and £x per day so I’ve got some room to manoeuvre whilst trying to avoid scaring the client off in the first place.


(Belinda Booker) #11

Yes it’s tempting to undersell (and overstretch) yourself when you want to secure the work. Being brave enough to turn down work is always the challenge for freelancers!


(Melissa Saunders) #12

Generally depends when my rent is due and what else is on the table!!


(Abena P) #13

I haven’t had too many people try to negotiate my rate - I hope that’s not because I’m underselling myself! For comparison purposes, I generally charge a day rate rather than an hourly rate. It depends on my availability, type of event and complexity and level of interest but hovers between £200 and £270. Is that in the range of yours?