How to negotiate event contracts and stay on budget
In today’s challenging event landscape, securing a favorable contract and managing costs are top priorities for meeting planners. Here’s a guide to help you navigate negotiations and get the most out of your event budget.
1. Start Strong and Act Fast
Prioritize and Be Open: Understand your stakeholders’ key objectives and balance them with an open mind to explore value-added opportunities at the venue.
Early Communication: Share any problematic contract clauses early on with the venue to facilitate negotiation and find common ground.
Engage Your DMC: If using a DMC, involve them early for their local knowledge of hotel pricing and negotiation tactics.
Lock in Rates: Respond promptly to attractive proposals to secure the offered rates and prevent potential increases.
Thorough Contract Review: Scrutinize every line of the contract to ensure all your needs are clearly outlined.
2. Navigate Difficult Negotiations
Leverage Buying Power: Use your overall event spend as leverage to overcome cost hurdles. Consider multi-year or multi-event deals to secure better terms.
Alternate Venues: Alternating events between two properties can lead to more favorable rates and streamlined planning processes.
3. Maximize F&B Value
Creative Collaboration: Push the venue to be an active partner in delivering memorable F&B experiences that enhance the event atmosphere.
Chef Consultation: Involve the venue’s chefs in menu planning, providing your budget upfront to create customized options that incorporate local flavors.
Procurement Justification: Highlight the added value of chef consultations and interactive F&B experiences to justify costs to your procurement team.
Payment Flexibility: Explore options like offering faster payment (e.g., within 30 days) in exchange for a discount on the total event bill.
4. Tackle AV Exclusivity
Understand the Clause: Be aware that hotels often have exclusivity clauses that can inflate AV pricing.
Ask Questions: Before signing, inquire about the venue’s AV capabilities, equipment age, and crew experience.
Negotiate Alternatives: If the venue lacks necessary equipment or expertise, negotiate to bring in your own AV vendor for specific needs while allowing the venue to maintain exclusivity for basic services.
AV Expertise: Become knowledgeable about AV equipment and alternatives to ensure cost-effectiveness and quality.
Any thoughts, opinions, or news? Please share them with me at vince@meetingsevents.com.
Photo by Getty Images For Unsplash+
