Event Planning: Bidding Tactics & Compensation

Targeting Your Talents

• Event planning companies are often asked to absorb costs in money and labor without any guarantees of compensation
• Some companies willingly jump into bidding wars without considering if declining the invitation would be more beneficial

Service Industry vs. Professionals

• Planners position themselves as a service industry and are uncomfortable asking to be paid for their expertise
• Customers come into their offices for expert advice but do not expect to always pay for that advice
• Customers would expect to pay when dining in a restaurant, golfing, or seeing a movie

Paying for Professional Advice

• Visiting a doctor has costs associated
• Hiring a lawyer will usually require payment of a retainer
• Event planning companies generate dramatic returns

Weighing Risks and Costs

• The volume of work, costs, and risk of failure need to be weighed carefully when committing to bid on a project
• Time, money, and energy costs on the part of the event planning company and its suppliers must be reviewed before giving away creativity and professional advice

New Bidding Tactics

• Savvy event planning companies are starting to employ new bidding tactics and value their role in their clients' growth
• Some event planning companies charge a non-refundable retainer to cover bidding costs
• If the company requesting the bid declines to pay a design fee, leaving is an option
• Some companies are investing in themselves and their business and targeting their talents to specific clients, declining to take part in a bid situation
• Focusing energies in a specific direction can yield greater rewards

Customer Business Practices

• Consider your customers as well as their business practices before bidding
• Consider whether there is a charge for their services
• Knowing how the business operates is important when deciding whether or not to incur bidding costs

Carving Out a Niche

• One company carved out its niche in the wedding planning market to suit its nature and talents
• Wedding clients need constant attention, whereas corporate clients make heavy demands with no guarantee of business

Focusing on Wedding Planning

• Less financial risk
• Requires more personal attention
• Focus on wedding planning and took into account the physical presence required at rehearsals and overseeing the event

Emotional Connections

• The bride and groom want the person who orchestrated the events to be with them
• Wedding planners determined financial objective and minimum management fee

Targeting Upscale Weddings

• They needed to market to upscale society weddings
• This allowed them to focus energies on making themselves the preferred wedding planner of their target market
• The company business could expand by being available to their clients for all events in their lives
• Used emotional marketing in promotional endeavors; treated all clients carefully
• Clients marketed to were in the upper-income bracket, some events could cost over US$100,000
• They charged a minimum management fee to handle any event, even intimate celebrations

Connecting with Target Customers

• To penetrate their market, wedding planners connected with their target customer face to face
• They spent time, energy, and money attending/contributing to gala fundraising events
• They volunteered their creative services and worked to produce outstanding events on behalf of charities
• This allowed them to showcase their talents, budget management, and network with potential clients
• Involvement was limited to being an event design consultant to avoid affecting the business or level of service to clients

Silent Action

• Wedding planners made sure their contribution matched their skills and was valuable to nonprofit organizations
• The planners were actively involved in overseeing event set-up and mingled as guests during events
• They also negotiated tables to invite select guests, worked with the media, and ensured proper crediting for event design
• Their credibility grew, which increased marketability; the money/time invested in becoming a trusted resource was more valuable than advertising
• They exceeded client expectations and delivered future options to meet event planning needs
• Weddings were also utilized to showcase talents to potential lifelong clients

Matching Talents to Audience

• Targeting talents to an audience involves using skills to create an event, market yourself, and promote your skills
• Client acquisition
• Client referral
• Client retention

Evaluation

• Define personal and company objectives and identified desired-not targeted-client base
• List your assets, based on:
  • Natural talent
  • Skills
  • Specialized knowledge
  • Equipment
  • Location
  • Staff
  • Present clients
  • Connections
• List the known and perceived needs of the clients you are seeking

Sample List - Personal Assets

• Analytical in nature
• Can easily handle logistics for up to 2,000 guests
• Special skills in handling automotive, financial and entertainment industry
• Has done events around the world and is well-schooled in protocol and customs
• Offers extreme creativity with new event element introduction
• Specialized knowledge in special effects, audiovisual and stage production
• Proven history of designing events that Strategically meet all of the client's objectives
• Dead-on accuracy with costings, and event reconciliation is always on target/under budget.
• Excellent negotiation abilities.
• Experienced in business development, creative design, event management and on-site production.
• Adept at handling media event requirements
• Experienced at orchestrating charity events and silent auction setups

Sample List - Perceived Needs

• Good direction for volunteers with little/no experience
• Availability for meetings, many at night due to volunteer work schedules
• Skilled negotiator in obtaining donated goods
• Good business contacts, able to obtain a car for a charity raffle
• Ability to provide budget updates regularly
• Staff to handle the RSVPs and Media Contacts.

Examination

• Objectively examine the lists and assess gaps
• Assess clients' media requirements
• Determine if you are able to provide what the clients require
• Are there any red flag areas showing up that cause concern?

Development

• Ascertain where you are more outstanding to grow further and market a better position
• Give an estimated value of what will be required to make it to the level to bring the company to the next level
• You are prepared to give your full commitment to this understanding because in the above wedding planning company example, the planners knew that they had to develop their contacts and that initially it could require a major time commitment from them
• Time spent making new contacts would lessen over time

Strategy

• To give a competitive edge, create a marketing strategy that is environment rich
• Planners put themselves in an environment rich with potential by attending/volunteering for upscale gala fundraisers
• They were targeting the society market by working where the fish are
• They are planting seeds in soil
• The wedding planners didn't spend funds on bridal shows/expos since they weren't for them
• For someone else a bridal show could be the Perfect vehicle

Innovative Design

• Target talents to the client while also considering their future trajectory; How will your company accommodate the clients' needs in the future?
• One event planning company lost a client by refusing to accommodate the client's increasing technological needs
• Another company designed to lead, offering innovative solutions exceeding customers expectations
• Planners kept current by attending educational seminars; growing and expanding talents to meet future client needs

Personalization

• Ways to strengthen client's company or gain a client's trust
• Personalize services
• Understand each client's perception of value
• One client valued transparency
• This company was dealing with event planning companies that refused to divulge how the costs were broken down
• The event planning company delivered exactly what their client valued most for its mirrored business ethics

Fulfillment

• Devise ways to deliver more value to individuals
• Be targeted to what has value for a customer
• One decor company delivered more than expected
• Offered to include additional props the day before the event at no extra expense

Prioritization

• Targeting your talents to meet your audiences: knowing what clients are buying must be a priority

International Marketing

• Some companies limit their business to local clientele
• They are not leveraging talents internationally
• With proper knowledge, talent and research, businesses can expand across oceans
• Site inspection staff will set off with video and digital cameras in hand to capture all-important elements

Questions to Consider

• What are my areas of expertise?
• Where do I need to improve?
• Which clients would most benefit from my skills?
• What are these clients buying?
• What am I selling?
• What are my customer criteria?
• What are the customer's criteria? -Are we a business match? -Questions listed in (96) through 97)