A little more information
Event spend typically includes a wide variety of elements. This basket of costs is often managed by a ‘one stop’ agency. Using our market insight and experience we will de-couple the complex web of sub-contract arrangements and commission payments to create a level of transparency which can be used to secure significant cost savings. We create an environment in which suppliers can give of their best, whilst clients remain in control of the costs and the outcomes.
Alastair spent 20+ years as CEO of a leading Event Management Agency prior to joining ERA. His expertise and experience encompasses a wide range of event related areas. With clients in the Commercial, Public and Charitable sector, he has produced events in venues including Wembley and the NEC, winning accolades including the IVCA LiveCom Award.
COST AREAS INCLUDE:
- Design & Content
- Venue Hire
- Venue Services
(Approved Suppliers – Catering & Hospitality)
- Attendee Management
(Booking & Registration Systems)
- Production Services
(AV, Staging, etc.)
- Marquees & Temporary Structures
- Event Insurance
Venue Sourcing and Contract Negotiation
With little investment in new stock since 2008 the demand for meeting space now far outstrips supply. The earlier the client starts to think about their requirements the more flexibility there will be.
How often do you negotiate a venue contract? Do you understand fully the potential pitfalls: Cancelation fees, overrun penalties, rigging, carpeting, furniture, compulsory stewarding and security, approved supplier ties, minimum bed nights, insurance liability obligations etc.
Is there an embedded tradition within your organisation around event dates and locations?
Do you need a fresh, independent and strategic approach to event venue procurement?
Creative / Management Agency – Benchmarking, Tendering and Appointment
A 2013 report put the UK annual events spend at £34.7bn, over half of this is reported to be in the control of individuals for whom events are not a core responsibility or skill.
The majority of; conferences, exhibition stands, staff parties, roadshows and fundraising events, will involve a third party agency, not always a specialist Event Management company, this might be a; Marketing, PR, or Design agency.
There is a high level of sub-contracting in the sector and whilst many agencies will purport to offer ‘full service delivery’, few have the in-house skills to deliver all aspects of an event.
The agency net margin (which can vary significantly, from as little as 20% to as much as 100%+) will be based on a combination of transparent fees as well as, often hidden, commissions and discounts offered by subcontractors.
The rationale for the continued appointment of an agency is rarely purely strategic, often there are strong personal emotions at play and many unjustified hurdles will be put in the path of change.
When it comes to cost reduction, the starting point is the de-coupling of the elements to discover who is being paid what, by whom, to do what. There may be a complex web of sub-contract arrangements and commission payments. Our industry knowledge ensures that we can provide the client with a revelationary level of transparency which can be used to secure net cost reductions.
Approved Supplier Contracts
As a venue is the success of your business dependent upon the services provided to your clients by your strategic partners or ‘Approved Suppliers’?
‘Approved Supplier’ lists for services such as; Audio Visual Equipment, Furniture, Rigging, Catering, Marquees etc. are critical to the commercial and operational success of a venue. They are a source of income and also a vital service partner. ‘Approved Suppliers’ often have specialist knowledge which is not always shared with the venue. This, combined with lack of time to research the alternatives, means venues are often fearful of making a change.
Can you be sure you are getting best value out of these relationships? As a venue manager are you losing business because the cost of the essential ‘approved supplier list’ third party services are perceived to be too high by your end client?
An ERA Review of current contractual obligations and benefits will identify and record ‘hidden’ supplier knowledge, and identify suitable alternative suppliers. If appropriate we will secure proposals, and negotiate new contracts, offering enhanced benefits and reduced venue liabilities.
Want to find out more?