5 Event Budget Fixes

There is no better way to communicate your company’s message than being face-to-face with clients and prospects. The question is: How can a company strategically and efficiently plan a program in this economic environment? By using the ideas, tips, and resources below, you can immediately lower anticipated program expenses and cut costs for your upcoming events.

First of all, don’t decide at the last minute to hold a program. It will cost you big money. Next, there are strategic tools that should be implemented during the planning stages that will help you create a program while cutting costs. Start by focusing on the big-ticket items and the value they provide. Concentrate on squeezing out the most value from venue rental, printed collateral, food and beverages, and audio-visual displays and equipment rental costs. Here’s what you can do to save money on your upcoming events over the next 12 months:

1. Renegotiate: The key to managing costs effectively and reducing risk is a well-executed contract or agreement with the venue. A well-written contract, negotiated by an experienced decision-maker, will save your company thousands of dollars, if not more. Let me shout this from the rooftop — EVERY THING IS NEGOTIABLE!

This tough economy will most certainly have an adverse affect on attendance, which in turn will affect the hotel’s expected income on food, beverage, hotel rooms, meeting room rental, audio-visual displays and equipment rental, and technical staff. Be as assertive as possible when negotiating terms that would require you to pay attrition fees — costs related to lower than — guaranteed attendance. Do your homework and go into the negotiations with your best estimate of what your program needs will be. Your goal will be to negotiate the lowest possible attrition rates if you are unable to meet the guaranteed minimums; especially if you have to cancel.

In addition, you’ll want to ask the vendor to provide value for choosing them over others. Look for incentives such as room upgrades, complimentary spa services, validated parking, or free coffee breaks, to name a few. Once the contract is signed, keep it close at hand. Monitor your registration levels like a hawk and weigh them against the negotiated attrition rates. If you do have to pay attrition fees or cancel, you won’t be taken by surprise.

2. Consolidate: Save money by hosting more people at fewer meetings or events. If you use your marketing dollars wisely, you can build awareness and anticipation, and maximize registration. If you host an annual conference or trade show, you should consider reaching out to an industry colleague or competitor who does the same and join forces. The result should be an increase in attendance and ultimately a savings in overall production costs.

3. Relocate: If you’re hosting a small meeting of fewer than 50 people, consider a conference center, because they specialize in providing Conference Meeting Packages (CMPs). This allinclusive option simplifies meeting planning and budgeting. These venues make it simple for you save money by breaking everything down to a perperson cost. The individual costs will include guest rooms, several meals a day, refreshments, meeting room rental, conference services, and audio-visual support. Contact the International Association of Conference Centers for a participating venue near you. (See “Online Planning Resources” for more information.)

4. Streamline: Forgo the traditional sit-down dinner in favor of an extended reception that lasts three to four hours. Work with the chef to provide a creative menu of hors d’oeuvres and multiple buffets, with bottled water, soft drinks, and beer. In addition, cut the free drinks. You won’t be popular, but you’ll save money. Offer a cash bar for wine and hard liquor. For music and entertainment, consider a hiring a DJ and a handful of professional novelty performers for much less than the tens of thousands that a live band or named talent would cost.

Hosting a multi-day program this year? Consider providing breakfast and lunch only. Then, do some research and select off-site restaurants and/or interactive activities for dinner. The local convention and visitor’s bureau will connect you to resources and specials (See “Online Planning Resources” for more ideas). Try to negotiate group rates, and provide a list of recommended restaurants and facilities. Be creative and encourage attendees to “support the local economy” and “go out on the town.” Try your best to select venues that are within walking distance, or are only a short taxi ride away—for under $10. This alternative will save you money on food, liquor, room rental, entertainment, staffing, and motor coaches.

5. Bundle: If there is employee travel involved, allocate a standard travel stipend for everyone, no matter what position they hold at your company— including yourself. In addition, allocate a reasonable per diem for multi-day programs to cover food expenses.

Print all of your 2009 collateral as a bulk print job and save thousands. Store the items until you need them. If you’re hosting consecutive meetings or events, ship unused collateral to your next destination instead of back to your office. Try to negotiate free storage at the next facility if they will be securing items for fewer than three days.

Whether you are considering hosting a cocktail reception, industry conference, awards dinner, or other professional event, don’t get so wrapped up in the details that you forget that you are working on a key element of your marketing strategy. With careful planning, you can squeeze out of a large amount of marketing value without spending a lot of marketing dollars.