Corporate Event Economics - Gear Up For Business Events in a Down Market

To event or not to event in a down market, that ismaterial is industry specific, hire a presentation
the question on the minds of many corporateexpert.
executives. Is it better to invest $500,000 in a4. Don't be afraid to reveal your budget. Create a
meeting that could generate $2M in sales or ditch it inrealistic budget for your event. Event professionals
a fit of cautionary economizing? Corporate eventand vendors expect to work within a budget.
planners are finding that small and large businesses5. Tighten up presentations and shorten the length of
alike are canceling or postponing events in reaction tothe conference. If your four-day conference for 100
a downturn in the economy. Actions speak louderpeople costs an average of $450/day/person for
than words and in a tough economy, a canceledhotel room, meeting space and materials, food and
event is the perceptual equivalent of a hole in abeverage and audio/visual equipment, you could save
sinking ship.up to $45,000 simply by eliminating one day.
Meetings, conferences, seminars and events are a6. Plan ahead. Time is a valuable cost cutter. You can
critical part of a business communication strategy.shop for a less expensive printer; avoid rush charges
Events say, "We are doing business, and we arefor goods and services, and save money by booking
confident in our business position." When reviewingtravel arrangements in advance. A Silicon Valley high
your marketing budget, look at events astech company spent $12,000 in copy charges at the
investments, not expenditures. Don't give events theconference site because presentations were not
boot, tighten your belt and give them the squeeze.completed by the deadlines.
Don't bail on your events; plan them smarter.7. Evaluate costs before canceling current events.
How can you make your events smarter? First, planHotel and catering contracts have strict cancellation
them strategically. Events are tools. They are plannedpolicies. Canceling an event three to six months out
in response to a need for face-to-facecan cost as much as it would to actually have the
communication. Why are you having the event?event. Two years ago, a client wanted to pull the
What do you expect from the event? Who isplug on a high-tech partners conference we had
coming to the event? Research these factorsspent months planning. With just 45 days until the
extensively. Then use the data to determine how toevent, it would have cost $80,000 to cancel it and
deliver the richest amount of content to the$90,000 to have it. We convinced him to go ahead
targeted audience in the shortest amount of time.with it, and he signed a lucrative contract at the
Next, plan them professionally. Does your staff haveconference.
the time, skills and resources needed to effectively8. Understand your negotiating power. Understand
plan implement and staff an event, while continuingyour negotiating power before you sign any
to do their own jobs? Event planners do. Theycontracts. Flexibility of dates, addition of sleeping
manage thousands of logistical details and providerooms, food and beverage commitments and use of
resources for professional contract negotiation,other hotel services bring to a venue, the greater
content development, speakers and specializedthe negotiating power you have. Flex your
vendors. In addition, event planners know thenegotiating power by combining other event efforts
elements that are essential to a successful event.within the company.
We tell our clients that the success of their9. Reduce "no-shows" and watch guarantees. Hotels
conference will be based on the content, not on theroutinely charge for rooms not used and not
chicken.cancelled, and they have a prorated charge for
Here are some belt-tighteners for anyone planning anpotential business lost on food and beverage. Try
event, meeting or conference:telemarketing and e-marketing to insure that
attendees keep your event in mind and to minimize
1. Do your research first. The greatest cost saver for"no-shows". Some "no-shows" are inevitable, so pay
any event is knowledge.attention to meal guarantees, hotel room counts, and
2. Hire professionals. Hotel, entertainment, foodtransportation needs when negotiating contracts.
beverage and travel/transportation contracts are10. Consider back-end expenses. Awkward signage,
complex, high-ticket items. Mistakes can be costly.demo equipment, heavy meeting materials and
The fee for an event planner or other professional tocumbersome guest gifts all have to be shipped home.
negotiate on your behalf is cost effective.These costs can add up.
Professionals have the resources and often haveTo event or not to event? The answer is "To
established relationships with vendors they know andevent". In a world of e-mail and e-commerce, events
trust. They are familiar with standard hotel, venue,are the real deal. They are an experience. They can
and food and beverage contracts and can help youstimulate confidence, promote networking, increase
negotiate.sales and encourage problem solving in a face-to-face
3. Hire professional speakers. Professional speakers orformat. So pull it in a notch or kick it down a peg but
trainers make sure the message of the event isdon't cancel your event. Events say, "We are here to
delivered. If your company doesn't have a greatstay.
speaker to deliver meeting content, hire one. If your