The planned pricing structure of A Fabulous Affair is straight forward.  The business will charge the client a commission off the total cost of the event.  This method of pricing is the norm for the industry.  The commission structure is broken down into two categories - events costing less than $50,000 will be charged a 10% commission and events over $50,000 will be charged 7%.  There will be instances in which a pre-determined number of events will be contracted (usually by corporate accounts), whereby a discount commission rate will be assigned.  For instance, A Fabulous Affair is on the verge of signing a contract with XYZ corporation to provide them with event planning services for their corporate functions this year.  The budget the corporation has allocated is $500,000.  Based on this contract a commission of 6% has been negotiated with the understanding that if the budget is decreased;

-   $100,000 the commission will increase to 7%

-   $200,000 the commission will increase to 8%; and

-   $300,000 and more the commission by will increase to 10%.

The commission schedule is in line with competitors in this industry.  The table (Price Comparison) reveals the results of a comparison that was made with the top three competitors.

In addition to commission, the business will receive a 10% referral fee from each independent contractor the customer utilizes.  This 10% referral fee compensates for the discount given to the customer by the contractor, thus, the business does not lose any potential income.