An overview of event planning costs
It is difficult to plan an event budget unless you have a good idea of what expenses you will incur. This seems obvious enough, but the costs associated with event planning can come from a number of different locations. Just when you think you have identified all your cost categories, another one appears to send you back to the drawing board. To avoid this, I have compiled this breakdown of event planning expenses to keep in mind when creating your budget.
It
is difficult to plan an event budget unless you have a good idea of what
expenses you will incur. This seems obvious enough, but the costs associated with event planning can
come from a number of different locations. Just when you think you have
identified all your cost categories, another one appears to send you back to
the drawing board. To avoid this, I have compiled this breakdown of event
planning expenses to keep in mind when creating your budget.
On-Site
Issues
Included here are the costs and fees usually charged by the
event? This is often the most expensive category, but it is also the
easiest to predict as you will get a formal cost estimate to review in advance. With
that said, do not forget to change into variable costs that change with your
attendance numbers. Catering is a good example of this as your food costs
will increase with each addition to your grill.
Place cost
§ Room rental
§ Sponsor
§ Insurance coverage
§ parking
Food and catering
§ meals
§ Liquor
§ Bartender / Server Fees
§ Taxes and Service / Gratuity Fees
Audio / Visual
§ microphones
§ Screens and projectors
§ Internet access
§ Other Specialized Equipment
Third-party sellers
This category represents all items and services provided by
suppliers outside the host premises. Everyone will bill you independently,
so it's important to keep close tabs on everyone you work with.
Using a spreadsheet will help your provider contacts along with
the costs associated with their services.
Event Rental
§ Linen, Table Skirting, and Chair Covers
§ Tents, Staging and Entertainment Attractions
§ Physical objects not supplied by the venue
§ Labor and Delivery for Setup / Teardown
Décor suppliers
§ Accent Lighting
§ Flowers & Centerpieces
§ balloon
Entertainment
§ Musician or DJ
§ Speaker Fees
§ Contractors (food, accommodation, transport)
Production costs
Production includes all the staff and resources needed to plan
and execute the event. These expenses start when the event is dreamed of
and continue through the post-event paperwork. In short, this category
represents the cost of organizing the event, attracting the participants and
managing the administrative elements.
Marketing and Registration
§ Printing and Design
§ ads
§ invitations
§ Registration Management
Planning and Organization
§ Event planner fee
§ Part-time and Temporary Employees
§ Office Supplies
§ Communication costs
§ Travel expenses
Administrative expenses
§ Salary Employee Assignments
§ Accounting Costs
§ Legal costs
§ Consultancy fees
Cost Transfers and Emergency Funds
There is no magic number for what you should set aside for
unplanned expenses, but you should definitely expect the unexpected. Some
planners plan to fund five to ten percent over expected expenses, while others
choose a round number to work with. Larger events must, of course, allocate
more because a charge levied per person can run into thousands of dollars.
The purpose of this outline is to make you aware of the
different types of event planning expenses that may occur. Each event is unique,
so yours may include more or less the items listed here. The important
thing is to know where your costs are coming from. Considering expenses
related to a particular provider or category can wreak havoc on your budget,
but the worst case scenario is completely forgetting about an expense until the
bill arrives.
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