Venue costs represent a large chunk of your event budget… if only there was a way to cut them down without making sacrifices. There is! Here we have compiled for you, 10 top tips that would help you negotiate a better deal for that venue. .
These skills will teach you how to get discounts and value-adds that will make your chosen venue both the right choice and at a great offer too. Negotiating like a pro could save you thousands of dollars so you'd thank yourself by deploying these tactics, as it's a life saver.
1. Tell the venue your budget
Sounds counter-intuitive right ? Starting out the negotiation by stating what you have (or want) to spend can actually prove beneficial. Ordinarily, a venue would respond to an inquiry by providing their “rack rate” figures and you’d need to negotiate down from there. This way – if they want your business – it’s down to them to either meet your budget or negotiate upwards with you.
But here's the trick, been honest and treating the venue managers as partners helps you to gain trust and respect, no need to play hardball. By asking for their help, explaining the cost restrictions you’re operating while expressing your keen desire to work with the venue, they’re more likely to try to accommodate you. However, while negotiating this cost, you need to be realistic with your budget – be ready to make realistic offer too!
2 Choose a venue that resonates with your event
It could come as a surprise to know that there are venues that go as far as offering certain preferences in terms of offers and discount, if the event in question aligns with - a cause or charity - that they support. Venues often have a mandate for supporting particular genres, areas of industry or sections of society. Perhaps it’s arts events, live music, science and technology events or community-based events? Getting a first hand understanding of what the venue wishes to align itself with by reading their corporate materials and looking at the events already taking place, gives you a good footing in negotiating better.
It's important to note that while gearing up to use this information to your advantage, there are also venues whose goals might not align with yours hence it might be nice to consider another location, as they’re unlikely to go to special lengths for your business. If it does, on the other hand, then be sure to explain in your opening conversation why you think you’re a good match.
3 Be as flexible as possible about date and time
The trick is to use to your benefits, the high and low demand of any venue to your advantage. Of course, if you’re hosting an after-work drinks reception you won’t be able to do that on a Sunday morning, but do try to be flexible and open-minded. Would turning your event into a breakfast gathering have a negative impact or could it actually be a good thing?
If you can, provide the venue with a number of dates that will open up options. Even better, you can ask the venue to tell you what dates on their calendar they want to fill. If you’re willing to take a last minute slot you may be able to benefit from a cancellation. Just be sure to leave yourself enough time to adequately plan and promote your event.
4. Leverage food and beverage spend to negotiate free space.
Booking a space where there is an offer for both food and drink at a flexible rate is one which you can explore greatly to your advantage. If your event entail budget for food and drinks, this gives you good leverage for negotiation. Alot of venue would either don’t charge for the event space or offer you a healthy discount provided a minimum spend on food and drinks is met.
In cases were you’re not supplying refreshments as part of your event, you might still be able to take advantage of this arrangement if you expect your attendees to spend a certain minimum on drinks and food at the venue. Book a space where either food or drink or both spend will be taken into consideration. Some have surprisingly low minimum spends, easily met if you have enough guests attending.
5. Be strategic as to when you sign the contract.
Venue managers, like any sales staff, have targets to meet. As such, they will be keener to do deals at certain times. For example, they’ll be less likely to discount at the beginning of a fresh month or quarter when they have lots of potential sales ahead of them.
However, if it is nearing the end of the month or quarter (depending on when their targets are set) and they haven’t secured enough business to meet their quotas, they will be more open to reducing their rates. Don’t be shy about asking if they can do you a deal for signing before the end of the month.
6. Cut food and beverage costs by joining forces.
There are lots of ways you can reduce food and beverage costs (from having a buffet to serving tap water), but menu sharing is one worth considering from the start. Look at what other events taking place in the venue on the same day as yours and see if you could join forces.
Using the same menu as the other event can help you negotiate lower costs because it streamlines operations for the kitchen. You might even want to talk to the organisers of the other event to discuss sharing infrastructure, perhaps at a reduced fee.
7. Bring in your own staff
It might be possible to reduce your venue fees by bringing in your own people to perform tasks the venue would normally charge for. This could be setting up the room, serving refreshments, manning the cloakroom or managing the registration desk.
Clarify what you and your staff can and can’t do – some venues will be more flexible than others. If you have a team of people you’re already paying, it makes sense to deploy them where possible to reduce overheads.
8. Book multiple events
Consider using the potential of repeat business as buying power, if you host regular events. Venues will be more likely to cut you a deal if they know it’s not a one-off. You could agree to host some or all of your yearly events in a single venue or with one venue brand to significantly increase the worth of your business.
If you don’t host events frequently, but have one that runs annually, such as an awards event or exhibition, you could offer to sign for multiple years. Making a long-term commitment to a venue helps build a relationship that should lead to them going the extra mile for you.
9. Sweeten the deal by offering something to the venue.
Finally, it’s not all about what the venue can offer you; if you can give them something in return it could make working with you more attractive. Consider whether you could offer them products or services in kind.
If not, can you help promote their venue by creating marketing opportunities? If your audience is the type they want to attract (see point 2), maybe they’d appreciate the chance to make a short presentation or have an exhibition stand? If you can establish a mutually beneficial partnership with your venue, they’ll be incentivized to work with you.
Conclusion
Negotiating can be daunting, but remember that all venues will have wriggle room one way or another. If you don’t ask, you don’t get. Try to avoid approaching it purely as a haggling process though; instead, build a relationship that will make the venue manager want to give you the best deal.