Who benefits from the cost structure of charging a percentage of an event's total cost?

Charging a percentage of an event's total cost typically benefits the event planning company. This pricing structure aligns the company's compensation with the overall expenses incurred when organizing the event. As the event's total cost increases, so does the fee for the planner, which incentivizes them to seek higher-quality vendors, enhance event quality, and manage resources efficiently.

This structure can also encourage the event planning company to invest more time and effort in delivering exceptional service, as their earnings are directly tied to the value they provide. When the overall budget is higher, it can also indicate that the client is likely planning a larger or more elaborate event, which may offer the planner more opportunities to showcase their skills and expand their portfolio.

In contrast, while vendors, venues, and clients each play crucial roles in the event, their financial arrangements typically do not directly benefit from this particular pricing model. Vendors are generally compensated based on their contracted fees, venues charge for space and services rendered, and clients are focused on maximizing their event experience within budget constraints.