Event Budgeting 101 - The Venue, Part 1

One of the biggest opportunities to save in event planning is at the venue. Being smart in your selection can have a huge impact on your budget. The more you know about the position the venues are in, and how they operate, the bigger the impact can be.

General Economics
We're guessing you've found the market fluctuation over the last few weeks to be really uncomfortable - you're wondering how you and your company are going to fare, how you will afford holiday gifts this year when your budget may be smaller, and are you going to get the bonus you had expected as little as three weeks ago?

You're not alone...the venues are wondering the same thing. December is their bonus. Many venues see their highest revenues in December, multiple times higher than their next highest month, and they count on the financial cushion it creates to make it through the typically sluggish first quarter that follows.

So, they need you and your company's party this December and will do whatever it takes to get it, particularly if they have excess capacity. This December the ball is in your court - it's an event consumers market.


How Venues Work
Many event locations operate on the principle of a "perishable inventory". They have an intangible item for sale, space, and if it's not sold for today before today is over they will never again have the chance to sell it and generate revenue for today. This fact is your friend.

Venues have a choice - do they want to sell the space to you and make some money or would they rather make none at all? Their rent's not changing, so do they want to cover some of it and make a little money or not? Most smart venues will take the smaller margin percentage in order to take some dollars to the bank. If all their costs are covered and they make $1000 on a $10000 event instead of the usual $5000 profit they may make, the $1000 contribution to their rent or savings for the first quarter is generally worthwhile.

The Best Choices
Some locations are smarter and more willing to work with you than others, generally depending on their cost structure. Look for the following types of venues that will be able to give you the best deals:

• those that will be open whether or not you have an event where your event will not disrupt their usual business, such as restaurants with private rooms
• those that will only have to open a few hours earlier for your event, such as nightclubs
  
• those in neighborhoods that have been particularly impacted by the economy, suck as the Financial District in NYC
• those that cater solely to corporate events
• those that offer food & beverage and will not require you to bring in a caterer

Other elements to look for with venues that can lead to great savings for you are:

• decor that will require little additional work on your part
• those that provide tables, chairs, linen, lounge furniture and votives
• overhead sound systems for background music
• microphones for speeches or remarks
  
• DJ booths if you are planning to use a DJ

These are just a few of the things that you need to know about venues before you start looking to book your holiday party. Taking heed can net you savings of over 25% of your budget.

Questions and comments are welcome, and we hope we have helped you figure out how to make the most of your event budget.

Have an eventful day!