Budgeting For Future Events

Budgeting For Future Events
Yes, every event is in the future, but when every dollar counts against you and your competition, how do you budget for future events? It’s a sensitive subject for many and it doesn’t have an easy answer. Event Planners must strive to present estimates to their clients while considering a number of factors.


Costs rise annually and they are also based on taxes that are applied. You can average 5% – 10% annually, but not everything is going to inflate equally, if at all. Think about whether it’s a hard cost like a rental chair in inventory or a highly taxable item like transportation services that are influenced by fuel services. For items that have hard costs, try to negotiate with your vendors and discuss what they are able to honor current or specific rates for the future. You’ll never know what you can lock-in unless you ask.

Time is money. The farther away the event is, the more time you’ll invest although you may never really be able to predict how much time a project will take in the early stages. Complexity of the project is definitely a driving factor. Working dynamics of/with the client, however are almost as significant to factoring time. Is there a committee/team of people that you report to? Is there one person who is quickly decisive? Is the project going to require a lot of revisions? All of this adds to the amount of billable hours spent. Consider adding some extra time to your budget no matter how you bill this, whether it be a percentage or flat fee.

Profit Margin
Everyone has a base margin that covers overhead. The rest is a sliding scale of profit and only you can decide just how much a piece of business is worth asking for a higher profit or lower profit than your average. Just as your vendor’s costs will inflate, your overhead costs will, too. But, if lowering your profit margin a small percentage to beat a competitor is worth it due to volume, goals, exposure or more, it may just be the right thing for you. 

You’re being hired for your expertise. Your service is a value that will never equate to a hard number. Predicting what costs will be in the future is more than an algorithm. If you break it down and consider your past experiences, you can estimate a fair value for your services, products and overall event.

Bixel & Company
Tel: 310-854-3828

Email Us: info@bixelco.com
Web Site – www.BixelCo.com

8721 West Sunset Blvd. Suite 101
Los Angeles, CA 90069

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