The Simplest Formula to Price your Services

by Precious Stevens on October 22, 2020
Many new designers get flustered when it’s time to price their backdrops. Truth be told, there are many ways to price your services and I cannot definitively tell you what is best. The two most common pricing strategies are packaging your backdrops or pricing everything out by line item. No matter which method you choose, the price should always land within the same price range. However, what I am here to talk about today is the baseline for pricing. In the event design industry, it doesn’t matter if you choose hourly or packages because you need to have a go-to formula regardless. For example, let’s say you have a client who wants a custom quote that lies somewhere in between your basic and premium package. Are you going to turn them down because you haven’t figured out the prices ahead of time? If not, how will you quickly and efficiently determine the price? This is where a foolproof formula comes in to play and I am going to share mine with you.

The Formula Basics:

My formula for pricing draping is by dimensions. It will look something like this.
L’ x W’ x $1.00 = (price)
This strategy is commonly used as a quick reference for a simple backdrop or perimeter draping. By having a simple formula to use, you can give quotes on the fly and give accurate estimates. It is important to note that things can get a little complicated as designs get more intricate such as double panels, more expensive fabrics, embellishments, etc., and we will go over how to price those services in a little bit. However a single backdrop that is 10’x10’ would cost relatively $100.

Adding to the Formula:

So, you have your base price that you calculated from the dimensions of the design. Now, it’s time to add in the cost of any embellishments. This includes (but isn’t limited to) tie backs, chandeliers and crystal curtains. If you’d like to learn more about how to use embellishments in your designs to add that wow factor and upcharge, I have a whole section of my blog dedicated to it! The reasons why embellishments come into play when you price your services is because they are additional things added to the fabric at will by the client. In addition to this, they tend to be a bit more expensive than just fabric on your end, so your price should reflect that too. The last few things you want to consider are your fees for setup/breakdown, delivery, travel and the cost of additional team members. The questions you should be asking yourself are: -How many people will be working the event with me? -How many hours will each person be working? -What is the hourly pay of my workers? -What is my travel cost? -How long will breakdown and setup take? When it all comes down to it, the go-to formula looks something like the one below. Now that you know how to price your services, be sure to let me know in the comments if you have used this formula or what yours is!

(L’ x W’ x $1.00) + (cost of embellishments) + (cost of breakdown/setup) + (hourly pay for workers) + (travel costs) = PRICE

If you are still looking for guidance and/or need this explained in detail, click this link to head over to my youtube channel. In the meantime, be sure to follow me on social media to stay up to date on new products, services and posts!

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