Meeting budgets are on the rise, according to recent research. In M&C's "2015 Meeting Spend Survey" (bit.ly/1hnIOBG), 48 percent of the nearly 200 respondents said their 2016 budgets will increase, and 46 percent said their budgets went up in 2015. That's good news for planners, right?
Not so fast. Year-over-year cost projections by finance and procurement officers typically are based on overall inflation and not necessarily adjusted for specific market conditions, notes Michael Dominguez, senior vice president and chief sales officer for MGM Resorts International. "The problem is, what our industry is buying has nothing to do with a consumer price index or an inflationary index", he says. "The finance people say, 'Inflation's at 2.5 percent; let me grow my budget by 2.5 percent.' Yet, room rates are growing at 6 to 6.5 percent."
Even with a modest budget bump, to offset rising room rates and F&B prices, planners will be pressed to cut in other areas. These tips will help when it's time to trim.
FOOD AND BEVERAGE
1. Don't sit. If you typically plan seated dinners every night during a meeting, save a bundle by changing things up for a night or two. "Have a standing reception, or some heavy hors d'oeuvres, some heavy food stations," says Dominguez of MGM. "Schedule it for a limited time frame, and people can move on."
3. Simplify breakfast and lunch.
2. Cut portion sizes. Talk to the chef about how much food is going on each plate, says Tracy Stuckrath, CSEP, CMM, CHC, president and chief connecting officer for Atlanta's Thrive! Meetings & Events. "A six-ounce steak is an ample size for a meal," she says. "A 10-ounce steak is too much food. The average attendee probably consumes 500 to 1,000 extra calories a day. By reducing the portion sizes, you're also helping your attendees manage their health."
"Breakfasts and lunches are becoming more about sustaining our nutrition than being meal experiences," says Dominguez. If your group is going to be working from 8 a.m. to 5 p.m., just make those meals about nourishing everybody. There's no need to go over the top with décor or theming, which can add costs.
4. Limit hotel labour. If you save the hotel in labour costs, ask that the savings be passed on to you, suggests Dominguez. For example, it's particularly labour-intensive to set up a meal function in two
locations, such as a cocktail reception by the pool followed by dinner in a ballroom. "I've had to set up two bars, two sets, two strikes: That's heavy labour for us," Dominguez points out. "Having the reception in the foyer of the ballroom might not be sexy, but it's very cost-effective."
5. Delay dessert. Karen Hanson, senior administrative assistant and event planner for ASML, a semiconductor company, has a trick for cutting the cost of midday sweets: "When I order lunch for a group, I will ask them to hold the dessert, and serve it as my afternoon snack or break," she says.
6. Trim the bar tab. For a 500-person reception at the American Academy of Allergy, Asthma & Immunology's (AAAAI) annual meeting in February, meetings manager Marlene DeMaster saved $8,000 over a similar event the previous year by paying a set fee for drinks. "Many off-site venues are now providing bar packages at a flat fee per hour or half-hour," she notes. "We provide complimentary premium wine and craft beers at this event, while offering a cash bar for drinks. I found this to be a win-win for the AAAAI and the guests."
7. Let food serve as centrepieces. F&B expert Tracy Stuckrath suggests placing dessert plates and bowls of local fruit or miniature fruit trees on banquet tables. Some organisations donate leftover whole fruits to local food pantries - and get a tax credit for the good deed. Also, pay attention to quantity. "Watch how much a hotel puts on each table," adds Stuckrath. "I attended a breakfast where there were enough pastries on each table to feed three tables."
A/V AND TECHNOLOGY
8. Use apps. "You've heard the saying, 'There's an app for that.' If you're looking to do something better, faster or easier, do a quick Google search for some free technology to help you out," says Liz King, founder of Liz King Events in New York City and an expert on meetings tech. "From check-in apps to task-management systems, there are plenty of great free options out there."
9. Bring your own. The fewer elements you need to rent from the A/V provider, the more money you can save. "We have purchased several projectors, so we save lots of money on A/V by shipping them to the event and just purchasing the tech-support package," says ASML's Karen Hanson.
10. Be wise about wi-fi. The AAAAI offers an annual Practice Management Workshop, an education programme for managers of medical offices. In advance, meetings manager Marlene DeMaster determines which speakers will need full wi-i capabilities to enhance their interactive sessions. "Those sessions are all scheduled in the same room, preferably on the same day, to minimise the need to provide this costly service throughout our entire meeting space," she notes. "Limiting it to one room for one day reduces our costs significantly."
11. Track bandwidth usage. To accurately budget for wi-fi, use data collected from last year's venue to predict the maximum number of simultaneous users and your group's bandwidth needs. "Share this with your next venue," advises Benjamin Rabe, event services director for association management company SmithBucklin. This ensures that you buy the amount of wi-fi your event really needs.
12. Share resources. Find out which groups will be in the venue's same space immediately before and after your event. Depending on their requirements, your show might be able to share A/V services, which can help offset labour and equipment costs, says Patti Rouzie, vice president of meetings and membership for the Alexandria, Va.-based National Beer Wholesalers Association.
14. Theme sparingly.
13. Watch for hidden costs. Delivery, set-up and post-event storage: Fees such as these can jack up a bill. "Consider using digital elements already available at many venues (built-in lighting or screens), or piggyback onto the AV bill with a striking but simple lighting concept," says Lizz Torgovnick, managing director of Sequence Events in New York City. "Often, when a room gets full, the décor concept gets lost in the crowd."
Instead of adding décor to each area of your event, invest in one focal point. "Whether that's an interactive piece in the reception, a table scape for a dinner, or a stage for an awards programme, put the money where people can easily see it, and forget the places they're just passing by," says Torgovnick.
15. Raid the closet. When planning meal functions, use the hotel's in-house décor and linens, instead of renting your own, says Rouzie of the NBWA. The property also might have props from prior events, such as artificial plants or other elements that would be a good fit for your group, perhaps eliminating the need for fresh flowers or other centrepieces.
16. Seek talent from within. If your entertainment budget is slim, poll your group for performers. "You'd be surprised at what hidden talents you'll find within your organisation," says Buffy Levy, event services director for SmithBucklin. "We have found members who perform magic, take professional photographs, perform in bands or play classical instruments." You can waive attendees' registration fees in exchange for their willingness to entertain the group, perhaps during a reception or break. (NB: Be sure to hold an audition or view videos in advance of the scheduled event to confirm that their talents are impressive.)
17. Get more from your speakers. When deciding which keynote speakers to hire for an event, consider if it makes sense to have them stay to do a break-out session or a book-signing. "Some people will include such a session in the base fee," says Brian Palmer, CMM, president of the National Speakers Bureau. "Others will add it for a modest amount, and you won't have to pay the expenses to fly in another person." (Log on to mcmag. com/research to find out more.)
18. Can't hurt to ask. Negotiate staff room rates and a comp room policy, and make sure any affiliate business goes toward your group's food and beverage minimums, says Tracey Anderson, director of meetings for the NBWA. Also try for comp meeting space, and reduced wi-fi fees. For VIPs, request complimentary airport transfers as well as room upgrades.
19. Be flexible with your dates. When comparing room rates and availability, particularly for smaller events, consider adjusting arrival and departure dates to save money, suggests the NBWA's Anderson. Doing so might cause inconvenience such as weekend travel or even avoiding the weekend, but that is when rates might be higher, depending on the destination.
20. Build a detailed budget. The event budget, which holds all key information about your event and its costs, must be specific and clear. Don't let confusion lead to missteps. Benjamin Rabe of SmithBucklin suggests including spreadsheet tabs for sub-budgets, such as F&B. Avoid items that say, "estimate per mMike." Notes Rabe, "A year from now you'll be saying, 'who is Mike?' "
21. Tally the taxes. Wrongly estimating taxes can result in a costly budget overrun. Because tax laws are different for each city and state, Buffy Levy of SmithBucklin recommends that planners contact local taxing bodies and find out which products, services and utilities are taxed. "Even small things like gratuities are taxable in some areas," she says. Make a note that taxes are the "current tax rate," and check again for the final forecast. "Don't assume that the tax rate is the same every year," says Levy.
22. Ask for help. Going green is becoming more affordable every day, which means you can be environmentally responsible while keeping an eye on the bottom line. "This is an area people really want to be related to, so look for a sponsor for your sustainability initiatives," suggests Fiona Pelham, managing director, Sustainable Events and Positive Impact Events in Manchester, England, and the incoming chair of Meeting Professionals International's global board of directors.
23. Use fewer signs. Another easy way to be eco-friendly and cut expenses: Carefully evaluate where you will need signage, with an eye to using less of it. "Don't put a date or conference name on signs; that way they can be used for different events," says Fiona Pelham. For directional signage, use generic logoed materials and add arrows to guide your group from place to place.
24. Give cups with perks. It's one thing to hand out reusable bottles at an event, another to get a majority of attendees to actually use them.
"We gave out water bottles and coffee mugs at a meeting, with the perk that they could take them to the hotel coffee shop and purchase unlimited hot and cold drinks there at a negotiated reduced group price," says Lupe Downing, a sales event planner for Couponsinc.com and Coupons.com. The result: less paper-cup waste and savings on costly coffee at breaks. Get a sponsor to logo the giveaways and support the entire refill programme to achieve more savings.
25. Add small sponsorship opportunities. Getting your usual sponsors to pony up for big-ticket items like name speakers, registration-hall banners and the like is de rigueur, but depending on the scope and content of your programme, you might be able to get them to foot the bill for some smaller activities, too.
"It could be sponsorship of a happy hour, a small booth or a grand-prize incentive," says Downing of Coupons. com. "Including them enhances your programme and saves money, which is a win-win situation for both."