Corporate event planning is different than other types of event planning such as weddings and parties. Many corporate event planners begin as wedding planners or other event organizers, often times beginning their tenure as a hobby. Making the transition to corporate event planning takes a special leap to make sure you are maximizing your profit potential. Avoiding some common pitfalls can boost your earnings and differentiate you from your competitors. Below are four mistakes corporate event planners make when pricing their services.
1. Underselling yourself
The biggest mistake you can make is to undersell yourself. As a corporate event planner, you set the expectation of quality that your customer will expect from you. Every aspect of your business will indicate your level of commitment to your customer. The more professional your organization is, the higher the margins you can command.
2. Not delivering on your promises. Equally important is to deliver on your promises. If you set high expectations, be willing to work hard to deliver on them and it will be very apparent to your customer that they are dealing with an organization that has integrity. People are more apt to use and recommend your services if you deliver on your promises, even if they have to spend a little more in the process.
3. Not doing your research to determine a fair price
Before you begin offering corporate event planning services, make sure you do your research to determine a fair price that you can charge. To research this, you may want to secretly shop your competition. Find out what they are charging for an event and compare against what you would need to charge to do the same event. Seek out reviews online to see where their strengths and weaknesses are. You may also be able to contact some of your previous clients and inquire about the competition.
4. Not working with your vendors to negotiate their best prices
Work with your vendors to negotiate their best prices. Ask for volume discounts to see where you can trim costs without cutting back on quality. Customers expect a markup on certain services, however they must be competitive. By coupling a smaller markup with a negotiated deal with the vendor, you can create opportunity for you and value for the client.