Every project has a budget. Obviously you have to stay within that budget, even though you may not have much control over what the budget is. Assuming that you have some input, it is worth having discussions early on; most people don’t have a grasp of what is needed to put in a sound system (or lights, video, etc), yet this can be vital information for whomever is forming the budget.
So, how should a budget be made? While it is possible to go through item by item, that is usually better suited for later in the process when more details have been worked out. Recently, my worship leader and I used two separate approaches in coming up with a recommended budget and came up with almost the exact same numbers! He used a more standard approach of categorizing and coming up with reasonable numbers in each category (soundboards, speakers, cabling, system processing, etc) for the project at hand. I often use this approach and find it very flexible for different situations. However, I had previously read and bookmarked an article entitled “Church Sound: Getting Our Heads Around The True Cost Of Systems” and was quite interested to see how a “cost per seat” scenario would work out. This is built on the idea that as the size of the church gets bigger the sound system needs proportionally get bigger as well. The author states that a reasonable cost for a traditional service can be based on $70 per seat with contemporary services costing 2-3 times as much.
Like I said, I was surprised at the accuracy that this approach gave us, and yet it had the benefit of being faster and keeping at bay the price wars or brand wars that so often accompany projects. It does require understanding how a church fits on the traditional/contemporary scale and what they want prioritized. If you plan to be edgy and modern with a high production value you will want to base your numbers on $210/seat (3x); if you want to use a band for worship but don’t plan on large productions 2x would be a better starting point. Whatever you choose, this approach can make things a lot easier. If budgeting based on category, it is very easy to accidentally leave things out. Things like wire and hardware (cases, desks, stands, etc) are easily forgotten yet add up quickly (wiring alone can easily be 10% of the system budget).
Also, make sure to discuss the importance of quality equipment. For someone who doesn’t know the ins and outs it is easy to say, “I saw Brand X online for half the price...”. What they don’t know is that Brand X will break in two years, or can’t be upgraded, or is difficult to use, etc. Then, in a few years they have to replace Brand X and spend money all over again. This approach of trying to keep things cheap ends up costing more money over time and it is important for the leadership to understand that. This does not mean that you need to buy the most expensive equipment, you just need to do your research and clearly understand the goals and needs for the system being designed.