Beware Of These Tactics To Avoid Overpaying For Your Venue

One of the most common mistakes that you can make when you’re planning an event is to overpay for your venue. People who don’t plan many events may not be familiar with some of the most common strategies that venue managers use to convince event organizers to overpay. If you’re planning an event, beware of these tactics to avoid overpaying for your venue.

Price is Always Negotiable
One of the most important things to remember when you’re selecting a venue is that price is always negotiable. When you call a venue to inquire about price, the rate that the hotel or venue manager quotes you is typically the rack rate. This is the published rate. Venues may print this rate in literature and brochures, or on the Web, and this is the price that they quote anyone who inquires about the venue.

It’s important to remember that price is always negotiable when you’re talking with a venue operator. The price that the venue operator quotes you up front is likely not the price you’ll end up paying for the venue, if you’re savvy and negotiate well. Don’t agree to pay full price without attempting to negotiate.

Venues Want to Fill their Rooms
As an event planner, you have power over a venue. Venue operators want to fill their rooms. Every day that a room sits empty is lost revenue. If you inquire about a venue during a slow period, or want to book a venue for several days, this gives you more power than inquiring during a peak period, or wanting to book a room only for a few hours. The more power you have, the more you can negotiate the price of a venue until you can get a favorable rate.

If you’re unable to negotiate the price to your liking, you can always walk away from the venue and find something else. There are typically other venues available, and the threat of walking away may be enough to convince the venue to go just a bit lower on the price.

Avoid Paying a Deposit for Your Venue
One strategy that venue operators often utilize to get money from people is to request a deposit for the venue. A good event planner can go an entire career without paying a single deposit on a venue. When you pay a deposit, you’re locked into utilizing that venue on that date. If you don’t have a high enough attendance and have to cancel the event, you’ll loose your deposit. Avoid paying a deposit from the beginning, and you won’t have unnecessary costs if you must cancel or reschedule your event.

In Summary - Be Informed, and Willing to Negotiate
Never agree to the first venue you contact when you’re planning an event. Contact several venues to get an idea of the range of pricing available. When you have a price range, you’ll have a better idea of what you should pay and how much you can negotiate. Alternately, if you know other venues are available, you can willingly walk away from a venue if you can’t negotiate an acceptable price.

Finally, avoid paying a deposit on a venue. If you need to cancel, a deposit is money lost; venues will typically work with you if you can provide a firm commitment but decline to pay a deposit.

Bernadette Doyle is a marketing specialist who helps entrepreneurs become client magnets and attract a steady stream of their ideal clients. Visit her Event Money Machine Blog. You'll learn about an amazing new Telesummit. Tickets to this event are FREE – so join our priority notification list to be the first to know when they become available. http://eventmoneymachineblog.com