Meeting planners can quickly lose their leverage based on how they approach the bidding process in regards to audio visual services (AV). Here are 3 steps to help you maintain leverage with hotels.
3 Steps to Maintaining Your leverage
- Utilize your production company to negotiate rates for exclusive services - Exclusive services such as rigging, high speed internet, and power distribution can often make up 15% - 20% of the overall production costs for an event. Engaging the hotel’s in-house AV department at the right time in the process can help your bottom line and improve how you and your company are treated throughout the process. Your production company can then adapt their approach to the event based on how flexible the in-house provider is being in regards to exclusive services.
- Before signing a contract with the hotel, require the hotel to agree to allow you to bring in your own production company without incurring additional charges - Request that on site AV needs and all rates for exclusive services will be provided at a 25% discount off of published rates. (If you are unsure of what charges are included in your hotel contract consult your production company)
- Select your AV production company first - It is a natural reaction for the in-house AV provider to be upset when they lose business and as a result often will take punitive measures in regards to charging for exclusive services. Do not include the in house AV provider in the first round of your bidding process. The production company that you select will be in stronger position to negotiate the terms for the exclusive services if the in-house provider is not competing during the initial bid. The in house can be given a chance to bid if necessary once you have received the proposals from your production company.
Now that you have read these 3 steps, you are in a better position to negotiate rates with hotels.
Production companies can be a benefit for events of all sizes, your event is never too small to consider using an outside AV production company. Do you have a production company to help you negotiate your AV rates? Clarity has experts who work with hotels to negotiate your production needs.
Let us help you maintain your leverage with the hotels by scheduling a 15 minute phone appointment to talk about your event.
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