WEDDING BUDGET

Location Fees and Other Costs to consider

You’d think that working from a budget would be obvious, but you’d be surprised how many people, especially brides and grooms, are unrealistic about what they can afford. Part of the problem is that most people aren’t very experienced with event budgeting and don’t know how to estimate what locations, products and services will ultimately cost.

In the early planning stages it’s a good idea to talk to a professional event planner or wedding consultant to get a sense of what’s feasible and what’s not. You don’t have to make a big financial or time commitment to use a professional; many will assist you on an hourly basis for a nuts-and-bolts session to determine priorities and to assign costs to items on your wish list.

Part of being realistic involves some simple arithmetic. For instance, the couple who has $5,000 for 250 guests should know that $20 per guest won’t go very far. Tax and gratuity combined can consume an average of 25% of the food and beverage budget (the range is 22% to 28%). If you subtract that 25% from $20, you have $15 left. If you also serve alcohol at $6/person, you’re down to $9/person for food. That’s not enough for a seated meal, let alone location rental fees, band, flowers, printed invitations, etc.

Before you make any major decisions or commit any of your funds for specific items, take a serious look at your total budget and make sure it can cover all your anticipated expenses. If it can’t, it’s time for some hard decisions. If you have a very large guest list and a small pocketbook, you may need to shorten the list or cut back on some of the amenities you want to include. No matter who foots the bill, be advised that doing the homework here really counts. Pin down your costs at the beginning of the planning stage and get all estimates in writing.

Location Fees and Deposits

If you’re planning far in advance, anticipate price increases by the time your function occurs. Once you’re definite about your location, try to lock in your fees in a contract, protecting yourself from possible rate increases later. Make sure you ask about every service provided and are clear about all of the extras that can really add up. Facilities may charge you for tables, chairs, linens, plateware and silverware, glassware and additional hours. Don’t be surprised to see tax and service charges in fixed amounts applied to the total bill if the facility provides restaurant or catering services. Although it may seem redundant to include the phrase “tax and service charges are additional” in each entry, we find that most people forget (or just don’t want to accept the painful reality) that 23%–28% will be applied to the food and beverage total.

Sometimes a deposit is nonrefundable—a fact you’ll definitely want to know if the deposit is a large percentage of the total bill. And even if it’s refundable, you still need to read the cancellation policy thoroughly. Also make sure you understand the policies which will ensure you get your cleaning and security deposit returned in full and again, get everything in writing.

Food costs vary considerably.

Carefully plan your menu with the caterer, event consultant or chef. Depending on the style of service and the type of food being served, the total food bill can vary dramatically—even if you’re getting quotes from the same caterer. Expect a multi-course seated meal to be the most expensive part of your event.

Alcohol is expensive, too, and you may be restricted in what you can serve and who can serve it. A facility may not allow you to bring your own alcoholic beverages, and if it does, it may limit you to wine or champagne. Many places discourage you from bringing your own (BYO) by charging an exorbitant corkage fee to remove the cork and pour. Other places have limited permits that don’t allow them to serve alcohol or restrict them from serving certain kinds; some will let you or the caterer serve alcohol, others require someone with a license. Make sure you know what’s allowed. Decide what your budget is for alcohol and determine what types you’re able to provide. And keep in mind that the catering fees you are quoted rarely include the cost of alcohol. If you provide the alcohol, make sure you keep your purchase receipts so you can return any unopened bottles.

So how much will your event cost? Facility deposits are usually not large, but sometimes the rental fees plus food and beverage services can add up to $30,000 or more, depending on the site and number of guests. Be sure you have a sensible handle on your budget and read all the fine print before you sign any contract.

Food and Alcohol Quality

Food and alcohol account for the greatest portion of an event’s budget; consequently, food and beverage selections are a big deal. Given the amount of money you will spend on this category alone, you should be concerned about the type, quantity and quality of what you eat and drink. If in-house catering is provided, we suggest you sample different menu options prior to paying a facility deposit. If you’d like to see how a facility handles food setup and presentation, ask the caterer to arrange a visit to someone else’s party about a half hour before it starts. It’s wise to taste wines and beers in advance, and be very specific about hard alcohol selections.

Hidden Costs

This may come as a surprise, but not all services and event equipment are covered in the rental fee, and some facilities hide the true cost of renting their space by having a low rental fee. It’s possible to get nickeled and dimed for all the extras: tables, chairs, linens, glassware, valet service and so forth. You can also end up paying more than you expected for security and cleanup. All these additional charges can really add up, so save yourself a big headache by understanding exactly what’s included in the rental fee and what’s not before you sign any contract.