By, Becky Koch, Meeting Planner at Impact Association Management
Contracts are a vital part of doing business, however negotiating pricing, concessions, and all of the pieces can be challenging. Situations and trends cause contract necessities to change and, often, increase in price. This is very evident in the event industry post-post-COVID.
MPI Association Professionals Community hosted a Hot Topic Chat on November 29, 2023, where we discussed some trends that have changed how we view contracting our events. Our world shifted during the COVID pandemic, causing events to close down or get creative virtually. As we opened back up in post-COVID, we all worked together to add contract stipulations for potential future pandemic situations, and overall just tried to get “back to normal.” As we have shifted again to mostly in-person events and a new normal, we enter a post-post-COVID time. We have seen new trends in 2023 that cause staying within budget to be even more challenging!
1. When contracting your event, do not assume anything is included.
Many items that venues would previously include complimentary without a discussion now cost a significant fee. Many venues did not previously charge for podiums, easels, extension cords, or other smaller items, however, these can now cost a range of rates. Pitchers of water on tables or a water station used to be complimentary, now you might see the cost be as high as just providing bottles of water. Ensure everything is spelled out clearly in the contract.
2. Prepare for higher AV costs and service fees.
AV setup may also be an added charge outside of the AV rental fees. Depending on what your AV needs are for your event, prices were usually fairly similar across the board. However, we have seen an increase in cost by almost double. When negotiating, discuss what AV costs will be at the time of your event, work on concessions for pricing, and look at your AV options for venue rental versus an outside AV company. Be sure to be aware of any service fees. Look to waive service fees or comp items instead of a blanket AV discount. Again, spell out in the contract what you are agreeing to.
3. Make sure you are padding your budget for food and beverages.
Food and beverage costs take up a large portion of all event budgets. We have seen an increase in these costs by about 30% and they go up about 5% each year. There has also been a shift from beverages being based on consumption to needing to guarantee numbers. You may want to consider moving your event times to cut back in this area too, such as starting later to avoid needing to provide breakfast or saving the dessert from lunch and putting it out as a PM break instead. Also, keep in mind most venues will give you a food and beverage minimum. If you know you will easily make this, see if you can raise that to get more wiggle room in other areas of the contract.
Overall, look closely at your budgets and your needs. Put together a thorough outline of your event showing the benefit to the venue of having your business, and negotiate wherever you can. Most importantly, remember when you are going through the contracting process you are negotiating, but once the contract is signed, you are begging.
Need help navigating the ins and outs of event contracting?
Impact’s team of expert meeting planners have a wealth of experience negotiating the best prices on tight budgets. Learn more about our event services or submit an RFP to discover how we can make your next event a success.