[Drew]

You need a full cost recovery model. Calculate your overhead rate by dividing total annual overhead by total billable hours, then add that rate to each staff member’s hourly wage. That is your break-even floor. Then compare with market rates and perceived value to set a sustainable price that aligns with your mission.

[Casey]

Calculate your overhead rate (total annual overhead ÷ total billable hours). Add that to staff wages and direct costs (meals, rentals). That gives your break-even floor. Then compare with market rates and adjust for your mission.

[Jordan]

From my experience, creating a pricing model isn’t easy. But doing some basic things can help achieve the objectives. I would recommend using a <strong style=”font-family: inherit; font-size: inherit;”>full-cost pricing model that separates direct costs like meals, rooms, facilities, and program staff from allocated overhead. Then calculate the total cost per participant and add a reasonable margin or subsidy factor, depending on whether the program is intended to break even or generate revenue. A simple spreadsheet with these categories can make it much easier to adjust pricing when attendance, staffing, or venue costs change.

[Jordan]

From my experience, creating a pricing model isn’t easy. But doing some basic things can help achieve the objectives. I would recommend using a full-cost pricing model that separates direct costs like meals, rooms, facilities, and program staff from allocated overhead. Then calculate the total cost per participant and add a reasonable margin or subsidy factor, depending on whether the program is intended to break even or generate revenue. A simple spreadsheet with these categories can make it much easier to adjust pricing when attendance, staffing, or venue costs change.