There’s no doubt that anyone in the event planning business today is certainly feeling the crunch when proposing to clients. It seems all we hear from the client is “we don’t have the budgets to hire an event planning company so were going to do it ourselves unless you can come in at a reasonable budget”. And quite often the event planning business feels the frustration because it’s usually their profits that take a hit. Believe it or not there still are ways to make profit in the event planning business.
An Established Event Planning Business Has Great Supplier Relationships
Most event planning businesses have very good working relationships with their suppliers. Otherwise they certainly wouldn’t use those suppliers. When economic times were good most suppliers would provide a quote to the event planning business and then it would be marked up for the end client. And quite often the rates given to the event planning business were close to what the end client would have paid to the supplier had they gone direct. I’ve always stated that for any event planning business, preferred suppliers should offer a reduced or what’s commonly referred to as a wholesale rate to the event planning business (especially if they’ve done a lot of business together). I’ve found that most suppliers when approached have no problem whatsoever in providing a wholesale rate. Then the event planning business is able to charge their end client a rate that is close to the suppliers retail rate. The end client wins because they pay pretty much the same amount while having the benefit of utilizing an event planning business. The event planning business wins because they’re able to get that piece of business without overpricing and losing out in the bidding process.
Most people in the event planning business know that hotels will pay commissionable rates. The qualification varies from hotel to hotel chain so make sure you know ahead of time what their policies are for commissionable rates. Like general suppliers, event planners are able to offer their clients hotel rates that are not marked up. The event planning business gets their commission from the hotel rather than from their client.