An experienced event planner will be the first to tell you that costs can stack up quickly. Sticker shock might set in once service fees, state taxes, minimums and penalties hit the bill.
“You don’t know what you don’t know,” says Michelle Stewart, owner of DYV Events, a corporate event and wedding planning service operating in Arkansas and New England. “You can’t just pop out and be an event planner. Until you actually get behind the scenes, you don’t know how it works.”
We spoke with hospitality professionals around Arkansas to learn about the best practices for budgeting, surprises to watch for and how to find deals with vendors and venues.
Budgeting for the cost drivers
When setting a budget for a business meeting or corporate event, a planner needs to consider first their goals for the event and how many people are likely to attend. The event venue will often use the largest portion of the budget, and many factors can change the ultimate cost of booking a location.
Emily Wren, owner and lead planner at With Great Love Events, a corporate event and wedding planning service based in Northwest Arkansas, says she often works with clients to build out line items in their events budgets after determining the event priorities.
“The biggest thing I do is help them understand what’s actually driving costs: guest count, venue, food, A/V and then timing — timing affects eventing,” Wren says.
Planning an event during peak times — whether that’s a Saturday afternoon in mid-October in Fayetteville or a clear weather weekend in the spring — will drive up rental fees and related costs, Wren says.
“Lead time matters too: If you call nine months out, we have options; if you call six weeks out, we’re going to pay more for whatever’s left,” she says.
Oftentimes, venues — particularly large ones, like hotels and convention centers — will offer full-service packages that include catering, audio-visual equipment, and support and staffing. Working with an outside vendor, such as a catering or A/V company, could make one subject to penalty fees related to not using in-house services.
“The venue drives so many decisions. It’s not just the rental fee; it’s what’s included, what’s not, how far guests have to travel, whether you’re locked into in-house services — all of that,” says Suzanne Rhoads, an instructor in the University of Arkansas’ hospitality management program.
But bringing in one’s own vendors also comes with potential unforeseen costs.
“People don’t think about the hidden operational costs. They might remember to budget for catering, but not for service charges, taxes, overtime, cleanup, A/V, security. Or they’ll pick a venue that seems cheap at first glance, but requires them to bring in everything — tables, chairs, linens, decor — which ends up costing more in the end,” Rhoads says.
That’s why it’s important to approach contracts with an eagle eye, accounting for every incoming charge and ensuring it fits one’s budget.
“The thing I try to drill into students is to read the contract — every line, twice,” Rhoads says. “Hidden fees are usually not actually hidden — they’re in the fine print. But most people don’t read it carefully, and then they’re surprised later.”
Wren says service fees are often 25-30% of the overall cost, so a quote for a $10,000 venue rental will end up actually costing something closer to $13,000. She recommends building a 10-20% contingency into one’s budget at the beginning of planning to ensure any surprises are covered once invoices start arriving.
Fixed costs — various state and local taxes, for the most part — won’t change, but through relationship-building and sometimes a little reciprocity, vendors and venue managers can often find some wiggle room in less settled costs and fees, like service charges.
Finding room to negotiate
Negotiations with service providers typically aren’t driven by high-pressure sales tactics, local planners say. A little sugar goes a lot further than salt.
“Hard negotiations don’t go as well as kind of just having more of a conversation and spitballing ideas,” says event planner Stewart.
An existing relationship with a venue or vendor goes a long way in deal-making, says Stasha Irby, sales manager at the Little Rock Convention and Visitors Bureau.
“If you’re a repeat client, or if you communicate well and treat our team with respect, we’re far more inclined to go the extra mile for you,” Irby says.
Planner Wren says the amount of flexibility available depends on the vendor, the season and other demand for the event date. The price for services isn’t always up for discussion, but value add-ons can make a big difference in keeping events within budget and highlighting planners’ priorities.
“Almost every contract has some room for negotiation; however, you aren’t always negotiating the price, sometimes you’re negotiating the value,” she says. “A vendor may not drop their fee, but they might agree to include a free hour of setup time, waive a standard delivery fee or provide an upgrade, like a better linen or premium bar mixer.”
Providing the event budget to vendors and venue managers up-front can help in setting expectations, and that goes both ways. Stewart gives the example of a venue offering in-house catering.
“Say you can pay $35 for a lunch, but their minimum is $39 per. Well, they might say, ‘Are you OK with not having a salad?’ And that gets your cost down,” she says. “It’s more of a partnership.”
Planners should research market rates for services and local venues before heading into price discussions, she adds; that information gives grounding to cost negotiations.
“Knowing what things cost and doing your research is big — you can get proposals from multiple hotels and play that game. I think that is a good way to negotiate, even if you’re brand new to the game,” Stewart says, noting that taking multiple bids can help planners compare add-ons during cost discussions.
Existing relationships with vendors and venues make cost discussions easy, Stewart says. And bringing in a significant number of people — who will rent rooms, eat at restaurants and shop locally — is a strong incentive for venues to negotiate, particularly if they’re tax-funded (like CVBs).
The most powerful leverage planners have is flexibility. Little Rock CVB’s Irby says being open to off-season dates and non-peak times can be a significant advantage for planners seeking deals.
“There are times where we really need business, and that’s where we want to kind of partner with planners and help them identify our need dates,” she says. “Midweek is usually less expensive than weekends. Morning events are cheaper than evenings. If they’re willing to book during our need periods, those slow times of the year, we’ll absolutely work with them.”
Wren says the most effective approach to a cost negotiation is to frame it as a win-win situation for all parties involved.
“Always open by stating you value their service and expertise,” she says. “Promising potential future work is strong leverage.”
Working within a budget can be challenging, but with some finesse, planners can find value that doesn’t break the bank.
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