Supply + Demand = Saving Perspectives

 Every meeting or event has two sides - the meeting planner and the supplier. At the end of the day, both want to pull off a successful event that will ultimately please the client and attendees. With budgetary concerns arising on both sides, both meeting planners and suppliers are looking to cut costs while maintaining event quality. Midwest Meetings^® explored the breadth of the unique relationship between suppliers and planners, delving into the deals and incentives being offered by suppliers and the wants and needs presented by planners in our rebounding economy. 

The Meeting Planner's Perspective

No matter if a meeting is big or small, corporate or private, conference center or golf course, meeting planners constantly adjust to the needs of their clients by wheeling and dealing with numerous facilities, vendors, suppliers and venues. This job can be extremely daunting to say the least, but with tighter budgets and an explosion of return on investment-based (ROI) meetings, planners must spend every penny wisely. 

Strategic partnerships and strong negotiation skills are essential tools that meeting planners need in this economic climate. By creating lasting and strategically based relationships, planners and suppliers both win in the end. Planners can look to suppliers to be a partner in their meeting endeavors and may possibly score discounts and extras by working in conjunction with these partners. 

Negotiate strategically

Meeting planners - simply dream up an event that is perfect, down to the last detail. The dream would rarely exist without help from a venue and/or contracted supplier. The budget, however, may not allow for an overtly luxurious red carpet event. Currently, meeting planners can put their thrifty skills to use while still planning and executing an event that will awe and inspire their attendees by simply negotiating strategically with their suppliers. 

First of all, don’t run the risk of asking for too many concessions. Remember, negotiation is a two-way street; if it wasn’t, it would be based on empty demands. “Over the last couple of years, the vendors that I work with across the country are willing to provide a few more concessions, along with lower rates; however, I am willing to be flexible with dates or use alternative meeting space to keep meeting rooms open for other groups,” said Kathryn Bodoh, CMP, Corporate Events Manager at Jewelers Mutual Insurance Company. 

Next, save yourself some green by working in collaboration with supplier sales teams. Let them know what you want and be prepared to offer something of value in return.

Maintain worthwhile and collaborative relationships

The best way to adjust to change is to head through untested waters with someone you can trust. In the recent past, change has been a mainstay for many in the hospitality and meetings industries. Some relationships have crumbled and others have been cultivated by the abrupt cycles that have brought us to where we are today. 

“Vendors have been very flexible over the past year… They have enabled our clients to live large on a low budget. You can be sure that we will keep those venders on our list for future business,” said Carol Galle, CMP, President of Special D Events, Inc. 

Customer care will out-value any discount

Deals are out there and negotiation is truly important today; however, if customer care is lacking, your dream meeting will fail to exist. Keep in mind that at the end of the day, the client and subsequent attendees of the meeting should be happy with what they received in exchange for their time and resources. 

“Truly, having a supplier that understands my attendee is a win-win situation,” noted Bodoh. 

Start keeping track. Maintain a list of venues and suppliers that kept your clients a number one priority. Then, remember to use them in the future. 

“Of course we look at who has the lowest prices and the most incentives… [but] we are big on customer service as well. If we have worked with a company that has gone above and beyond we will always go back to them first,” said Lacey Spallitta, CMP, MAC Meetings and Events. 

This lays the foundation for great working relationships that may yield discounts and promotions in the future coupled with invaluable customer care. 

Mix up your relationships

Many meeting planners would like to change a few things about their relationships with the supply end of their meetings. If you want or need something specific, speak up. It never hurts to ask. The worst outcome - you will hear the dreaded word “no” and then continue your search for better deals elsewhere. 

“I think the top thing I would change [with our supplier relationships] is that my contact be available before [the meeting] and onsite. I have had some wonderful contacts that are very available for anything my client and I may need, but I have also had some that I very rarely talk to before or hardly saw while onsite,” noted Spallitta. 

In addition, flexibility is a must. Bodoh adds, “If I could change anything, it would be a request to be more flexible. Sometimes venues do not look at the overall money spent in their facilities and so smaller groups get neglected based on the number of room nights.” 

The basics of service are still important to meeting providers. “When I’m the onsite manager, I want honesty, timeliness and excellent service from venders and facility management,” said Rennette Grace, Freelance TD. 

Ruth Ann Scott, Executive Director of the South Dakota Advertising Federation said audiovisual components are essential for their monthly luncheon meetings that typically feature a guest speaker. She also added that keeping costs down is a must. “The make or break item for us is the cost per person for each lunch.” Since the meetings are monthly, she noted that the ability to have the same space every time reduces confusion for guests. 

What next?

Trending shows the meetings industry is picking up and those with strong planner-supplier relationships are coming back stronger during the recovery. (See the article, An In Depth Look at Meeting Trends, on page 8 for more information.) 

Consider your options, negotiate, build and maintain relationships that cultivate customer care and finally look for the best deals that best suit your pursuits. Keep an eye out for the many deals that are currently available to meeting planners. (See the article, Deals, Deals and More Deals on page 43 for more information). 

Regardless of budgetary constraints, make your meeting sparkle. By ensuring quality care of attendees, your meeting will be a success. The equity and perceived value of your meeting should always be your top priority no matter what. Keep all of this in mind when planning your next event and you will be sure to find success.

The Meeting Supplier's Perspective

Whether nestled deep in the heart of the rural Midwest or centrally located in more large-scale urban areas, businesses that provide lodging and venues for the meeting and event industry are all continuing to develop deals that give planners creative options that fall within budgets. Regardless, all have found that by setting the pace in their communities, they remain on the forefront of changing economic times. Midwestern suppliers are finding that through inventive marketing, cooperative networking and resourceful negotiation, they can offer top-quality, full-service events to meeting planners and their clientele. 

More than ever, suppliers are sweetening deals by offering special incentive and/or reward programs for event bookings. Midwest Meetings^® reached out to suppliers, both big and small, to see what programs they are offering. 

Expect to have a choice of options

Tammy Grainger, Director of Sales and Marketing at the Four Points by Sheraton Minneapolis North, MN, said that by offering solid, value-based product incentives, the Four Points is making it possible for planners to make their budget goals. 

“We are new to the Wyndham^® family, so we are offering a special 1,000 point bonus of Wyndham Rewards^® points for new and returning members,” she said. “We also have reduced our room rentals on our meeting spaces and offer free wi-fi in all of our guestrooms and meetings spaces.” 

Service options are also negotiable and are a real selling-point for meeting planners. The Four Points offers planners an opportunity to pick and choose incentives as part of their plan. The choices include continental breakfast integrated in the guestroom rate, $100 vouchers for audiovisual, a weekend stay certificate or a $50 onsite restaurant certificate. 

Currently, incentives are receiving rave reviews from planners. In fact, the incentive programs have been so successful that the Four Points plans to offer this special through 2010. 

The Peninsula Chicago created a Meeting Your Needs package for meeting planners which includes but is not limited to a 5% master account credit, specially created catering menus, complimentary meeting room rental, complimentary VIP welcome reception prior to a group dinner at the hotel, complimentary morning or afternoon coffee break (daily) and two complimentary suite upgrades. 

“The success of these programs is contingent on the value they add to the overall customer package or experience... The Peninsula Chicago is offering incentives that the competitors are not, while continuing to offer unparalleled customer service,” said Marc Anderson, Director of Marketing at the Peninsula Chicago. 

The Meeting Your Needs package adds significant value to the meeting planner’s bottom line and allows meeting planners to pick and choose what is of greatest value to them. 

Plan ahead and negotiate 

When striking deals with suppliers, plan ahead and remember to negotiate an incentive plan that works best for you. Jeff Larson, Director of Marketing and Sales at the Landmark Resort in Egg Harbor, WI, said flexibility is the key to the successful supplier/planner relationships. 

“We do not have specific [planner] incentives, [but] we try to keep costs down.” By keeping costs within a price point that is achievable for various types of meetings and events, The Landmark Resort has been able to retain and gain business. “We have not increased our rates in three years and we give our salespeople considerable latitude with their clients. We do, however, offer a complimentary room for every 50 rooms booked.”

Larson also noted that listening to clients and working with their unique requests is an important part of the business. By working with budgetary expenses such as audiovisual costs and food and beverage costs, clients are able to negotiate costs on a personalized basis.

“I think that by having open communication, planners begin to trust their suppliers to help them come up with the best solutions to their budget concerns,” he said. 

Larson also offered other suggestions that make meetings more affordable; planning ahead and working with a supplier is key. “One way we can reduce prices is to move an event from one season to another. If a group can move an event up even ten days earlier, they may qualify for a different seasonal rate, which could amount to as much as $10/room in discounts.” 

Another tip, book entertainment locally. “If we know what a group is looking for in entertainment, we can book acts that fit that group or look for happenings within the community. For instance, a planner can save perhaps $2,000 by not having to pay for live music in-house.” Suppliers and hoteliers can recommend the best aspects of the community in which they live and work. All it takes is a little planning ahead and a contributive effort from all parties involved. 

Take advantage of inclusive programming

Suppliers can take some work out of the planner’s job by offering inclusive packages that save both budgeting time and dollars. Katie Schwindt, Director of Sales at King’s Pointe Resort in Storm Lake, IA, reiterated the importance of catering to a group’s needs and added that clients often want inclusive entertainment packages because many people are combining family vacations with meetings. 

King’s Pointe specializes in inclusive planning and packages. By specializing in amenities that include indoor and outdoor waterparks, a state-of-the-art playground, green space for concerts, a lighthouse and boat slips, in addition to quality golf courses and camping facilities, King’s Pointe offers a multitude of activities that will bring meeting guests and their families back for repeat visits.

By offering terrific experiences that don’t cost the meeting planner extra is a win-win situation. “For some families, this may be their vacation and we want to be a part of their family memories. We want to make the guest experience a fun one, and we often have conference guests stay and extra day to continue their family fun,” she said. 

Build relationships - value on loyalty and service

Suppliers have an opportunity to create repeat business simply by building strong foundations of trust and reliability with meeting planners. The Ramada Convention Center in Aberdeen, SD, and the Coates Plaza Hotel in Virginia, MN, are two venues that rely on local meeting trade and utilize a combination of service-orientated strategies to keep meeting planners coming back. 

Laure Swanson, Director of Sales at the Ramada Convention Center, said there is always room for budgeting negotiation with planners who are trying to get a good deal, especially when dealing with room rates. She focuses on service and maintaining positive relationships with new and existing meeting planners. 

“It all starts with building a rapport and loyalty. We have to continually prove ourselves through excellent service,” Swanson said. 

Sue Bowman, General Manager of the Coates Plaza Hotel , Virginia, MN, makes it a priority to keep planners happy by providing a quality atmosphere. “An individual who attends an event at our facilities may be enticed to come back.” Relationship building is key to successful business operations. 

Suppliers with strong ties to the community can offer discounts at local establishments, creating value-added incentives that help the meeting planner and local businesses. A variety of leisure activities, including golf package discounts and coupons for gaming establishments, are designed to pass on savings and to introduce attendees to the area. 

Collectively, all of these supplier efforts help keep meeting planners and participants coming back for more - a trend that is mutually beneficial for everyone involved.