Why Moving Beyond Hourly Pricing is Key for Event Production

While hourly rates seem simple, they penalize efficiency and don’t account for the immense value your production skills bring. Finishing a complex setup in half the time means earning half the revenue, despite delivering the same outcome.

In virtual and hybrid event production, clients aren’t just buying time; they’re buying a successful event, audience engagement, brand perception, and achievement of specific goals (leads, sales, education, etc.). Your pricing should reflect this value.

Sticking to purely hourly rates also makes budgeting unpredictable for clients and doesn’t easily accommodate the diverse services you offer, from technical setup and platform management to content production, speaker coaching, and live support.

Foundation: Accurately Calculate Your Costs

No matter your pricing model, you must know your costs. This is the absolute floor below which you cannot profitably price.

Break down your costs granularly for a typical event production project:

• Direct Labor: Wages for producers, technical directors, A/V technicians, graphic designers, content specialists, virtual moderators, etc.
• Software & Platform Fees: Costs for streaming platforms (e.g., Zoom Events, Hopin, Cvent - note these platforms have their own pricing structures you may need to account for or manage), engagement tools, project management software, design suites, etc.
• Equipment Costs: Depreciation or rental fees for cameras, audio equipment, lighting, encoders, internet infrastructure.
• Overhead: Rent, utilities, administrative salaries, insurance, marketing, sales costs, professional development.

Calculate your fully loaded hourly cost for team members and your average cost per event based on complexity. This gives you a baseline to ensure profitability when setting project fees or package prices. Don’t guess; use historical data and detailed tracking.

Common Pricing Models for Virtual & Hybrid Events

Here are models used by successful virtual and hybrid event production businesses:

Value-Based Pricing

This is pricing based on the value or outcome the event delivers for the client, not just your costs or time. This requires a deep understanding of the client’s goals and measuring success metrics (e.g., leads generated, audience engagement rate, pipeline influenced).

Pros: Highest potential profitability, aligns your success with the client’s. Cons: Difficult to implement, requires strong discovery and the ability to quantify value, not suitable for all clients or events.

Example: An event designed specifically for lead generation. You might price it based on a percentage of the projected pipeline value or a fixed fee tied to achieving a certain number of qualified leads. Price: $50,000 + 5% of leads generated value.

Implementing value-based pricing requires robust discovery and strong client relationships built on trust and demonstrated results.

Structuring Your Pricing Presentation for Impact

How you present your price is as important as the price itself. Avoid sending flat, undifferentiated quotes.

1. Anchor High (Implicitly): Start the conversation by discussing the potential impact of a successful event. Frame the investment in terms of results, not just features.
2. Offer Options (Tiering): Present your tiered packages clearly. Highlight the differences and the value provided at each level.
3. Use Add-ons: Include optional services clients can add to a base package. This increases average deal value and gives clients control. Examples: additional practice sessions, dedicated virtual tech support hotlines, post-event analytics reports, video editing of recordings.
4. Visualize Value: Use clear descriptions, maybe even visuals, to explain what’s included in each tier and add-on.
5. Provide Interactivity: Static PDFs or spreadsheets can be confusing. Allowing clients to select their desired options and see the price update in real-time significantly improves the client experience and helps them feel ownership over their choices.

This is where tools like PricingLink (https://pricinglink.com) shine. They are purpose-built to create these interactive, configurable pricing experiences via shareable links, allowing clients to explore options and build their ideal package visually. While PricingLink doesn’t do full proposals with e-signatures like PandaDoc (https://www.pandadoc.com) or Proposify (https://www.proposify.com), its laser focus on interactive pricing presentation is a unique advantage for businesses wanting a modern, streamlined quoting process that encourages upsells and filters leads.

Refining Your Pricing Over Time

Pricing isn’t static. Continuously evaluate and adjust based on:

• Cost Changes: Software subscriptions increase, labor costs rise.
• Market Demand: High demand allows for premium pricing.
• Competitor Pricing: Understand market rates, but don’t just copy them.
• Client Feedback: Are clients consistently choosing the lowest tier? Is the highest tier seen as too expensive?
• Profitability: Track project profitability religiously. Identify which types of events or services are most profitable.
• Value Delivered: As your expertise and technology improve, so does the value you deliver. Ensure your prices reflect this.

Consider price increases annually or when adding significant new capabilities. Communicate value proactively to justify increases.