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CONFERENCE
COST-CUTTING CONCEPTS - 222 Budget Cutting Ideas Listed below is a compilation
of meeting planning cost cutting ideas pickup up over the years. Thanks to
Louisa Davis, CMP/CMM who contributed a number of them. NEGOTIATION, GENERAL: 1.
Good negotiations are the KEY to major cost savings! 2.
Don't over-negotiate -- both sides need to win. Seek a FAIR contract! 3.
It is not in your interest for the hotel to lose money on you. 4.
Everything is negotiable, BUT everything has a price. 5.
When making a concession, this is a good time to ask for a
counter-concession. 6. Always maintain your "walkaway" power -- if you don't have a choice of vendors, you are not in a strong negotiating position. 7.
Use "feel, felt, found" formula to help to overcome obstacles.
(“I know how you FEEL, others have FELT the same, but have FOUND when doing
XXX that it has worked out successfully.) Trying to understand the other
side, and empathize with them, breaks down the negotiation walls. 8.
Manage your negotiation time -- 80% of the concessions are made in the
last 20% of the time. 9.
The person under the greatest time pressure generally loses in
negotiation. 10.
Never reveal it if you have a deadline. 11.
Make your offer low but flexible. 12.
Get all that you negotiate in WRITING!!! 13.
Budget a 10% contingency. This will take care of unforeseen costs
(strikes, weather, etc.) 14.
Never sign a contract unless you agree with it in its entirety. Cross out
or edit clauses with which you do not agree, initial them and get the supplier
to initial his or her agreement. HOTEL/
MEETING LOCATION/ SITE SELECTION 15.
Use the web for research and expediting the site selection process. Two
excellent sites to start with are: www.plansoft.com
and www.eventsource.com. 16. Let the local CVB’s do the work in setting up a site visit -- letting them do the leg work and saving you costs. 17. Work with the hotel national sales offices to set up site visits -- if you book multiple meetings with the same chain, they will help relay the value of your meeting to the individual property. 18
.
Make sure that the cancellation clause is reciprocal. 19.
Develop long-term relationships with properties and chains you often use.
Negotiate volume discounts. 20.
Ask for a cash discount for payment on-site. 21.
<![endif]>Develop a
detailed RFP and ask for everything up front including: a.
1:30 or 1:40 comp rates b.
airport transfers c.
early check-in times d.
late checkout times e.
complimentary coffee and tea in the rooms f.
complimentary meeting space, storage space g.
no package receiving charges h.
continental breakfast in the meeting room i.
extended-stay rates j.
free local calls k.
free office space l.
free or reduced parking for VIPs and staff m.
health club access n.
late cutoff dates o.
reduced room rates for staff, speakers p.
upgrades for VIPs and staff q.
welcome gifts and notes r.
electrical s.
discounted exhibit space 22.
Use third-tier cities or local destinations than can offer more bang for
the buck. 23.
Add a clause in the hotel contract that states you will not pay the final
invoice until you have received a detailed post-convention evaluation from the
property. 24.
Know the value of your group! Track pickup, no-shows, single/double
occupancy, F&B, outlet usage, etc 25. Research the rack rates and group rates. Call the toll-free line or reservation desk to get this information. 26.
Use a video camera to tape your site inspections – to help remember the
property. 27.
Keep accurate records of full time registrants, part-time, exhibitors,
no-shows, guests. 28.
Use competitive bidding and let each property know you are doing so. 29. Know the supply/demand cycle of the hotel and city -- try to book in the soft periods to give more negotiation leverage. 30.
Learn all you can bout the hotel: current occupancy rate, current rack
rate, current group rates 31.
Use shoulder periods. 32.
Work with the hotels to fill their “hot dates” or meeting space
“holes.” 33.
Book meetings near holidays (Easter, Labor Day, etc.). 34.
Be flexible with your arrivals and departures. Can you move from a
Tuesday through Thursday to a Saturday through Monday meeting? 35.
Analyze the cost savings of air-fare requiring a Saturday-night stay.
It may not be cheaper than paying for the extra room night plus the
applicable per diem 36.
Consider weekend meetings if the hotel's demand is lower then. 37. Offer the possibility of repeat business if this is a legitimate option. 38. Be conservative in your room block estimates -- paying for unused rooms is costly. 39.
Depending on the group, sacrifice room rate for more concessions in food
and beverage area, and meeting room charges. 40.
Avoid taking "all space." Leave the hotel something to sell. 41.
Reduce the number of breakout rooms needed, saving AV and setup costs. 42.
Use the same room with two setups. For example, use the room
classroom-style for the course, and banquet-style for the serving lunch and for
breaks. Put up the screens or use plants to divide the space. 43.
Avoid using the full registration area (same logic) 44.
Cut down on the number of breakout rooms. (Possibly, have small breakouts
at night.) 45.
Avoid numerous meetings on pre- and post-convention days. 46.
Use "first refusal" to reserve auxiliary function space. 47. Have hotel pay comp room credits to master account if the rooms are not needed by staff. 48.
Cut the number of comp rooms and VIP amenities required. 49. Swap the comp suite for additional staff rooms (often 2-3 rooms) 50.
Negotiate a staff discount (20-50% of the group rate) for XX rooms. 51.
Use simple meeting room setups. 52.
Standardize room sets to reduce or eliminate the need for room resets
(for convention centers). 53.
Work with hotels existing inventory of equipment (tables, chairs, easels,
etc) 54. Cut down on schoolroom-style setups for some of the rooms -- they take more labor, more space, and are slower to turn around to another setting compared to theater style. 55. Encourage double occupancy with spouses -- this bring more people (more business) to the hotel and increases the value of your group. 56.
Reduce late checkouts making it easier for the hotel to accommodate
incoming groups. 57. Negotiate a formula for figuring future year prices -- "Room rates not to exceed x% per year" or "an xx% reduction from the existing rack rate at that time of the year." 58.
Negotiate F&B cap on price increases for future years. 59.
Negotiate free staff parking. 60.
Negotiate free airport pickup for staff. 61.
Negotiate one free mic per meeting room. 62.
Negotiate deposit clause out of the contract – or at least that the
deposit will be placed in an interest-bearing account. 63. Negotiate use of paging units, portable radio or cell phone for the meeting manager or staff. 64.
Limit authorized signatures and don’t accept charges signed by
unauthorized people. 65.
Learn the tax laws for both your business location and the location of
your event. You could be eligible for tax breaks that you are not claiming. 66.
Negotiate sliding-scale rates with the hotel. 67.
Cash in your comp rooms for the suites first. FOOD: GENERAL: 68.
Give the catering manager/convention services manager your budget and let
him/her create your menu. 69.
Build up your F&B totals with on-site meals and functions for other
contract concessions. 70.
Lock in the menu prices. If the hotel will not provide a specific menu in
advance, at least agree that the menu prices will not increase more than a fixed
percentage per year. 71.
Negotiate special menus breakfasts, lunches, dinners at a discounted
fixed rate. 72.
Order as much as possible by “consumption.” Uneaten food and drink
can be returned and not charged. This works well with soda and packaged foods
like potato chips, but can also be done with perishables. 73.
Re-use food if possible. Cover uneaten Danishes and doughnuts from the
coffee break and provide them with lunch or in the exhibit hall. 74.
Work with the chef to create a special meal at low cost. Deal with the
chef directly. Challenge him or her to work with your meeting’s goals and
concept. The chef will know what is in season and what is grown or produced
locally and can be very creative if given the opportunity. 75.
Find out the chefs flexibility in adding on to a guarantee, then
guarantee low and add. 76.
Guarantee low at 48 hours and raise it at 24 hours. 77.
Negotiate a higher overset or to pay only for the actual cost for those
not showing. 78.
Encourage the chef to use lower cost in-season items. 79.
Hold food functions in hotel to eliminate transportation costs. 80.
Negotiate in inclusive prices. 81.
Carefully monitor past history for making meal guarantees. 82.
Carefully monitor and make notes of consumption -- was all the coffee
drunk? were all the pastries eaten? etc. 83.
Always remember the "no-show" factor -- often 10%, and make
guarantees accordingly. 84.
Keep an ongoing record of actual numbers served at all you food functions
to determine your group's historic no-show. 85.
Take into account the location of your convention, and how it will affect
your counts. 86.
Meet with the Convention Service Manager daily for a bill review and
sign-off. It is much easier to clear up and billing mistakes or
misunderstandings then and it simplifies the last day as well. BREAKFAST: 87.
Have more lower cost continental breakfasts, and fewer full plated meals. 88.
Order just breakfast breads/coffee rather than full continental. 89.
Have breakfast meetings instead of lunch or dinner. 90.
Cut Danish in half and order fewer. 91.
Use breakfast breads (i.e. banana breads) instead of generally more
expensive muffins or Danish. LUNCH/DINNER: 92.
Collaborate with chef to use same menu as other groups in house. 93.
Reduce meal portions: 6 oz. rather than 8 oz. meat portions. 94.
Consider an upgrade "break" to replace a meal function, rather
than eliminate the meal altogether. 95.
Eliminate the soup and only have the salad as a starter. 96.
Eliminate meals from the registration fee, and have registrants book and
pay for separately. 97.
In convention centers, use lunch tickets coupons (worth $5 off meal at
the concession stands) rather than box lunches. 98.
Use box lunches rather than plated. 99. Required a banquet redemption ticket, so members must exchange coupon for an actual diner ticket in order to get more accurate counts. 100.
Use room service for food functions involving small meetings (cheaper, no
guarantees, etc.) 101.
Skip the dessert, salad or soup. Dessert can be served at breaks. 102.
Ask which other groups are using the hotel at the same time. You may be
able to have the same menu, thereby gaining economies of scales that can be
passed on in cost savings to you. RECEPTIONS: 103.
Use more filling and cheaper pasta stations and nacho stations instead of
individual hors d' oeuvres. 104.
Use cheese trays, and veggie trays rather than more expensive individual
hors d' oeuvres. 105.
Consider after-dinner dessert/coffee reception rather than more drinking. 106.
Don’t use plates (limits consumption) 107.
Butler serve hors d' oeuvres -- it is more elegant and it reduces
consumption. 108.
Put hors d'oeuvres station against wall. 109.
Negotiate VIP reception instead of a full meal for organizational VIPs. 110.
Try staffed food stations, such as stir fry stations and pasta tables --
this adds to the visual interest and slows consumption. 111.
Avoid shrimp, oysters and other expensive delicacies. 112.
Compare a la carte vs. per person pricing on a spreadsheet. BEVERAGE: 113.
Buy your coffee, tea and decaf in bulk or by the gallon – this usually
is the least expensive way to go. 114.
If you are able to, buy soft drinks in bulk and have your staff or self
serve. 115.
Wine and cheese, instead of cocktails and hors d'oeuvres. 116.
Offer ala carte cash wine with dinner. 117.
Give people something to do during cocktail parties -- they will drink
less. 118.
Use cash bars. 119.
Use drink tickets (2 max./person). 120.
Inventory the bars before and after the event. 121.
Negotiate bottle prices rather than per drink or per person (for larger
groups). 122. Never use unlimited consumption plan -- this is almost always the most costly way to go. 123.
Find a local winery or microbrewery to sponsor your liquor costs. 124. Insist on posi-pour spouts for liquor (or jiggers) to prevent over-pouring. 125.
Never allow free pouring of alcohol. 126.
Use 1 oz. shots rather than 1.5 oz. 127.
Minimize salty snacks as they increase beverage consumption. 128.
Use keg beer rather than bottle. 129.
Don't have the music too loud. This makes it difficult for people to talk
-- driving them to drink instead of conversation. 130.
Shorten reception times -- 1 hour to 1½ hour max. 131.
Do not announce last calls for drinks. 132.
Provide and encourage non-alcoholic alternatives. 133.
Go for sodas rather than more expensive mineral waters. 134.
Go for domestic rather than import wines/beers. 135.
Use house brands rather than premium. 136.
Eliminate alcohol altogether. Or eliminate hard liquor and mixed drinks.
Serve only soft drinks, juices and beer and wine. 137.
Ask the hotelier if a discontinued wine label is available that can be
consumed at a reduced rate. SUPPLIERS: 138.
Research your hotel suppliers.—the competition? how busy is the market?
is it busy season? How many years in business? 139.
Bid out just about everything! Don’t let any one supplier think he or
she is your only
choice. 140.
Use the same decorator/drayage company for exhibits. 141.
Get free registration set-up and free hall entry units from decorator. 142.
Use hotel chairs/tables instead of decorators for any non-exhibitor set. 143.
Used skirted tables instead of renting secretarial desks for on-site
offices. 144.
Use hotel props instead of renting from the outside. 145.
Use Convention Visitor Bureau (staff, maps, flyers, restaurant services,
etc.) 146.
Use shuttle buses instead of large buses (sometimes cheaper) 147.
Use official freight company to get free freight. 148.
Bid out signage. 149.
Schedule security guards carefully (Don't let them do it for you.) 150.
Limit number of handouts. 151.
Use outside photocopy service for large quantity copying. 152.
Track your busy registration times and staff accordingly. 153.
Carefully bid temp. staff schedule -- book according to demand. 154.
Hire on-site registration and secretarial staff instead of paying staff
to travel. 155.
Know local overtime restrictions and regulations. 156.
Schedule staff at straight time to avoid overtime. 157.
Pay staff travel per diem. Outline exactly what they’re allowed to
spend on meals and transportation. AUDIO VISUAL: 158.
Bid to outside an AV company (up to 50% cost savings). 159.
Deal directly with the AV company. It minimizes miscommunication, and the
hotel won’t charge for middleman services. 160.
Negotiate reduced rates for multiple days. 161.
Travel with your own extension cores and surge protectors. They cost a
fortune if you need them at the spur of the moment. 162.
Have your audio taping company record your meeting at no charge as part
of the agreement. 163.
Limit wireless microphones by opting, instead, for handheld microphones
with long cords whenever possible. 164.
Order one microphone to be shared between two panelists at a table. 165.
Sit down with your AV company and work out the cheapest way to set up. 166.
Use cocktail rounds instead of renting overhead cards. 167.
Buy a TV and give it away later as a door prize instead of racking up
several days of rental costs. 168.
Negotiate free walkie-talkies from decorator or AV firm. 169. Bring with you AV suppliers (markers, transparencies, etc.) instead of purchasing at a higher cost from the hotel. 170.
Limit AV equipment. 171.
Use as few microphones as possible. This will eliminate labor and the
need for the sound mixing equipment. 172.
Ask for one complimentary microphone per meeting room. 173.
Do not rent lager screens than necessary. Work with your AV person to
determine. 174. Skip the draping for the screens to save costs. 175.
When you expect to have extensive AV needs, book a conference center.
Most will include the equipment in the costs. 176.
Use your hotel’s closed circuit television capabilities to announce
program and program changes, room assignments, and activities. 177.
Use LCD panels instead of video projectors. 178.
Just before the meeting, reconfirm the speakers’ AV needs. Presenter
may have originally requested equipment they no longer plan to use. 179. Consider buying your own LCD or video projector -- if it is used 5 times, it is usually paid for. -- be sure to include a high quality packing case. 180.
Don’t arbitrarily put AV in every room. Ask speakers and moderators
what they’’ need first. 181.
If you need a VCR, consider renting from a local video store. TRANSPORTATION 182.
Use official air carrier to get comp. tickets credits. 183.
Use official car rental to get comp. cars 184.
Analyze the cost savings of airfare requiring a Saturday-night stay.
It may not be cheaper than paying for the extra room night plus the
applicable per diem. 185.
Instead of “meet and greet” services, distribute vouchers for
airports shuttles and/or fare for public buses or subways. 186.
While negotiating for your hotel or resort, request complimentary
limousine service for VIPs to and from the hotel. Also inquire about
complimentary parking. 187.
Use Metro or public transportation instead of charter buses. 188.
Ask that your special guests and staff get reserved parking spaces close
to the hotel entrance. 189.
Transport delegates within a four to eight-hour window to cut back on bus
transfer costs. 190.
As for free drink coupons on airline flight. 191.
Negotiate with airlines for discounted airfare and comp tickets based on
volume booked (normal one ticket for 50). 192. Negotiate a free site inspection ticket -- or a ticket refund if the airline is chosen and the meeting booked. 193.
Ask the local taxi company for discounts for local shows, restaurants,
and site seeing attractions. 194.
Use the carrier’s VIP lounge for the group’s meet and greet. 195.
Plan travel during off-peak hours (early morning or late evening). 196.
Ask hotels whether they provide a complimentary airport shuttle service
and book those that do. 197.
Limit shuttle service hours (between multiple hotels for city-wide
meetings) to two hours in the morning and two hours in the late afternoon to cut
costs. PROMOTION/REGISTRATION: 198.
Use the web and email as a key component of meeting promotion. 199.
Use the web for registration reducing data entry costs and errors. 200.
Automate the meeting registration process with registration software. 201.
Ask exhibitors to mail guest passes to their customers. 202.
Use local units or chapters to get house ads. 203.
Issue press releases to increase attendance 204.
Determine how attendees found out about the meeting. 205.
Offer discount for early registration 206.
Institute cancellation fees. SPEAKERS/ENTERTAINMENT: 207.
On back-to-back meetings, use the same speakers. 208.
Multiple booking rates? 209. Use industry experts as speakers -- costs may be lower. 210.
Book local speakers or entertainers to save on travel expenses. 211.
Negotiate a flat rate with speakers instead of fee plus expenses. 212.
Piggyback speakers and entertainers with other groups in the same hotel
or same city. 213.
Use versatile acts in more than event. 214.
Understand union rules and hire the minimum number of musicians required. 215.
See the talent in actions and check references. 216.
Use recorded music instead of live. 217. Use public domain music or original music instead of copyrighted to avoid paying licensing fees. SPONSORSHIPS: 218.
Look for exhibitor sponsors for breaks, and hold them in the exhibit
hall. 219. Get companies to sponsor receptions, coffee breaks and other F&B events. SIGNAGE: 220.
Rely on the hotel function board to reduce signage. (Make it clear to
them how you want the signs to read.) 221. Use computer generated signs from a laser printer and enlarge with photocopier. 222. Use PowerPoint to generate the signs -- and then enlarge from there.
If you find this article helpful, please let me know by signing the Guest Book in the Contact Corbin Section.. |
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