Tuesday, March 20, 2012

Event Negotiating Basics

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HandBook Shows How to Out-Negotiate Suppliers & Be a Master Negotiator
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Marketing Secrets - Fortune 100 Use Anyone Selling Anything Anywhere
Expert Author Richard Brody
If negotiating was simple, there would be no need to negotiate at all. In that scenario, everyone would always agree, always be fair, always look at the big picture, always be honest and honorable, and always be fully understanding of the needs of both sides. Unfortunately (or perhaps fortunately to we who negotiate professionally), these conditions rarely occur in the real world. For more than thirty years, I have been helping individuals and organizations effectively negotiate, often being able to save as much as forty percent, while also being able to put together a better, more effective and more viable event, conference, convention or program.
1. The first step that is all too often neglected must occur prior to even beginning the negotiating process. Organizations must be able to first identify what they wish to achieve. This includes the purpose and intent of the event, whether it is primary educational, fundraising, social, business, or some combination of these and other things. In addition, the group must the then prioritize their needs, and identify who their niche attendees might be. In other words, who are they trying to appeal to. Everyone involved in the running of this event must be on the same page from the onset, including the organization's leaders, the event planner (s), the event organizing committee, etc.
2. Before proceeding to the negotiating table, a meaningful budget must be created. This includes: determining anticipated attendance (must be a real number and not simply an optimistic pie in the sky number) based on actual metrics including history, marketing etc.; anticipated sponsors, donors, supporters, and subsidies; what type of marketing will be done and its associated costs; staffing needs and costs; number of events/ functions planned, and whether food and beverage is to be included, meal needs and specifications, complimentary attendees (also known as freebies); costs of meeting rooms, hotel rooms, etc. Is this an event where the rooms are paid for by the attendees, and if it is, how much impact on attendance does an attractive room rate affect? What clout does the group have, is there any flexibility in terms of dates, etc.? This process requires budgeting all revenues and expenditures, and using that as a guide to the negotiations themselves.
3. Step two should also act as a guiding light to create and use a Request for Proposal (RFP) to determine potential interest, realistic fit, as well as to inform the vendors as to the needs of the organization. The more the detail the RFP goes into, generally the better the result. For example, many organizations inadequately plan in one area or another, and because of that, have a rude awakening at "crunch" time. Areas often overlooked often include the true costs of audio- visual needs, inadequate food and beverage negotiations and creativity, economies of scale planning; and overall cost reduction.
4. Once the potential vendors has been reduced using Step three, it is time for negotiations. The negotiator must continuously demonstrate his integrity, as well as do a more than adequate job on his homework, so that he fully understands the needs of the vendor. Expert negotiators prioritize their requests and demands, so as to maximize their results. They understand that negotiating is give and take, and that effective negotiations, especially in the long term, demand a win- win philosophy. Both sides must walk away from the negotiations feeling satisfied that the agreement will work for them!
Organizations must never minimize the importance of quality negotiations. Expert negotiating is often the main difference between a potentially good event and a great, value- packed event that attendees also perceive as valuable.
With over 30 years consultative sales, marketing, training, managerial, and operations experience, Richard Brody has trained sales and marketing people in numerous industries, given hundreds of seminars, appeared as company spokesperson on over 200 radio and television programs. He's negotiated, arranged and organized hundreds of events.

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