The Misconception Around The Cost Of Using An Events Agency

It is no surprise that planning an event for your company is a big undertaking. You have to take the time out of your day to research, set up meetings, organise and liaise with vendors and make sure everything runs smoothly on the day of the long-awaited event. During your planning phase, you may find yourself going over budget or finding yourself time-poor and behind schedule. Hiring an events agency can actually help you to save money in the long run despite the misconception of an agency being expensive. Here’s how...

Different fee structures for different event styles and agencies 

In order to make a decision on whether the event management cost is suitable for the event you are planning, you need to have a basic knowledge of the ways that agencies quote their fees. Different event agencies will have different processes on how they bill for event planning and potentially different event styles or event support. 

• Flat fee

Event agencies may quote you on flat fees for “all-inclusive” events, such as company retreats or events that have a set headcount.

If you decide to host an incentive travel getaway for ten people, an agency will provide a flat fee which includes transportation, lodging, food, admission fees, and perhaps a tour guide. If the event costs £4,500 to host, the event managers may request a flat fee of £500 to organise the entire trip. The total price for this event would be £5,000.

• Hourly fee

If you are planning an event, an agency cost may be calculated using an hourly rate based on services rendered.  This is a great option for clients since there is more flexibility and estimates can be given easily, but as experts in their fields, event planners know how long events take to plan and can budget accordingly. 

If you were to use an event agency for third-party services where a team member of the agency came into the office for event support this can also be a great way to manage fees and budgets. 

• Percentage of expenses

If you are planning a conference or summit, event management costs may be determined by percentage.  Most event planners will charge a percentage on commission of the total event planning cost.  If you decide to do a roundtable event, team celebration or incentive trip the company may give a quote of £20,000.  If they decide to charge a 15% service fee, you will need to pay them £3,000.

Event planning companies will often give estimates based on your budget from the beginning; with strong budgeting and tracking abilities, agencies and clients can work closely together to ensure all budgets stay on track and in line with expectations.  

2. Value add of network and suppliers 

Organisations can strategically save money on producing events by benefiting from an event agency's diverse network and long contact list of suppliers. Utilising event agencies supply chains will allow them to get the best rates for your event, whilst staying within budget and managing all vendor fees. Sometimes ideas can change throughout planning due to costs mounting fairly quickly, however, an event agency is able to stick to a budget and have proper control over the funds going into producing events.

It’s important to note, that businesses aren’t always able to access these discounted rates, so it’s worth considering taking advantage of agencies' connections to wider suppliers to create outstanding events at a lower cost. 

3. Ability to help in all scales of event sizes

Event agencies aren’t just used for large-scale events, they have the ability to help businesses of all sizes and budgets. From corporate events through to third-party event support - it is possible to use an event agency for these events. Events are often an essential part of the marketing strategy that would like to be grown and/or improved but that requires a lot of time and planning. Using an events agency in the strategy of growing your business events is a smart way to level up your marketing strategy and grow your business brand’s community. 

Event agencies are even able to supply you with an event manager to work directly with your team (sometimes in the office) once or twice a week depending on your business needs. So if you don’t have the extra team member that you need to support you, an agency can provide this depending on how many hours a week you need support. From planning third-party events for your company to participate in through to even doing simple branding, data and budgeting event tasks! 

4. Time is money… 

If you’re trying to plan an event and manage different marketing or event tasks, this phrase will be all too familiar. Event planning requires a lot of time and energy. Completing this with a pile of important company-related work on your desk is not going to help that important work get done. As a result, your business slows down. This means you’re not making the money you would be if you were not planning that event, which will really hurt your bottom line. An event agency takes care of all of these details and even catches the ones you might miss, allowing you to maintain complete focus on your business.

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