It is easy to imagine yourself haggling with a stallholder in a Middle Eastern bazaar, but it is a little more daunting to consider trying to negotiate a better deal with a large conference venue.
Did you know that it is more common than you think? You might be able to save yourself hundreds of dollars if you know what you're doing, but before we get to that let's have a look at things from the venue's perspective.
A conference venue or function room is like any other business; they are out to make as much money as they possibly can.
At the same time they need to maintain a profit margin that allows them to offer the appropriate standard of support that any conference will require.
But a business is a business, and competition can play a large role when it comes to negotiating the price for your upcoming event.
It is a common adage that size really does matter.
In the world of conference planning this is certainly truer than you might think.
But it gets better.
Size can be important to a conference venue whether it be large or small.
When you think about it, a single large event allows the venue to accept a single booking which will utilise most of their resources and when they are working close to capacity they are happiest.
So if you are planning a large event, you may be in a strong position to negotiate a better price by the sheer size of your requirements.
But if you are a small operator or are planning a small event you might think there is no room to move when it comes to negotiating the price.
But that is where you may be wrong.
Many conferences can be comfortably staged at a conference venue when the event is of a medium size.
This means that the venue will be utilising around 60% or 70% of their capacity, and they won't be able to accept another conference of a similar size at the same time.
But, they will have 30% to 40% of underutilised capacity.
This is where a small event can be slotted in quite easily, and given the staffing requirements that will be on hand for the other medium-sized event, there may be little added cost for a hotel to include a small addition.
It is for this reason that a small event may hold a very important negotiating tool, again simply by virtue of size! Once you have obtained quotes from a number of venues and you have a better understanding of the likely budget, you will more than likely be able to negotiate a better price at a large function centre that is almost completely booked.
The exact amount of the discount you look for should be at least 10 to 15% by arguing that the larger venue can capitalise on its economy of scale.
Your bottom-line should always be that if you cannot negotiate a cheaper price, you must be prepared to take your business elsewhere immediately.
Getting the best deal from your conference venue might be a little easier than you think when you are bold enough to simply ask the question.
Did you know that it is more common than you think? You might be able to save yourself hundreds of dollars if you know what you're doing, but before we get to that let's have a look at things from the venue's perspective.
A conference venue or function room is like any other business; they are out to make as much money as they possibly can.
At the same time they need to maintain a profit margin that allows them to offer the appropriate standard of support that any conference will require.
But a business is a business, and competition can play a large role when it comes to negotiating the price for your upcoming event.
It is a common adage that size really does matter.
In the world of conference planning this is certainly truer than you might think.
But it gets better.
Size can be important to a conference venue whether it be large or small.
When you think about it, a single large event allows the venue to accept a single booking which will utilise most of their resources and when they are working close to capacity they are happiest.
So if you are planning a large event, you may be in a strong position to negotiate a better price by the sheer size of your requirements.
But if you are a small operator or are planning a small event you might think there is no room to move when it comes to negotiating the price.
But that is where you may be wrong.
Many conferences can be comfortably staged at a conference venue when the event is of a medium size.
This means that the venue will be utilising around 60% or 70% of their capacity, and they won't be able to accept another conference of a similar size at the same time.
But, they will have 30% to 40% of underutilised capacity.
This is where a small event can be slotted in quite easily, and given the staffing requirements that will be on hand for the other medium-sized event, there may be little added cost for a hotel to include a small addition.
It is for this reason that a small event may hold a very important negotiating tool, again simply by virtue of size! Once you have obtained quotes from a number of venues and you have a better understanding of the likely budget, you will more than likely be able to negotiate a better price at a large function centre that is almost completely booked.
The exact amount of the discount you look for should be at least 10 to 15% by arguing that the larger venue can capitalise on its economy of scale.
Your bottom-line should always be that if you cannot negotiate a cheaper price, you must be prepared to take your business elsewhere immediately.
Getting the best deal from your conference venue might be a little easier than you think when you are bold enough to simply ask the question.