Brandt Krueger

TECHNICAL PRODUCER, EDUCATOR, SPEAKER, AND CONSULTANT FOR THE MEETING AND EVENTS INDUSTRY. GEEK DAD, HUSBAND

Consultant, Meeting and Event Technology
Owner, Event Technology Consulting
Instructor, Event Leadership Institute
Cohost, #EventIcons - Where the icons of the event industry meet

Filtering by Tag: Saving Money

Expect the Unexpected: Don’t Let Surprise AV Charges Blow Your Budget

(An edited version of this article was originally published in MeetingMentor Magazine in Spring 2019)

It’s happened to the best of us: Your event is winding down and you’re in the home stretch. Everything was flawless. The boss’ boss is happy as a clam and already talking about how you can take things to the next level. Just a few more folks to depart and you’re home free!

It’s at that moment that the representative from your AV company decides to approach you with what appears to be half-ream of paper and a pen with the venue logo on it. It’s the final bill. And it’s thousands of dollars more than the estimate.

Now, in what should be your moment of triumph, you’re figuring out if there’s anything left in the “popcorn balls” budget you can move around to cover the overage.

The good news is that the vast majority of budget-busting surprises can be avoided, with a little planning, a little negotiation, and a little common sense. Let’s take a look at some of the biggest offenders to keep an eye out for.

WiFi

Let’s get this one out of the way first. More planners than ever are making sure to address this issue with the venue as part of the negotiation process, but there’s still just enough of you out there that aren’t to include it in the list. WiFi is infrastructure. Unlike water (which you don’t get charged more for depending on how much your attendees use), WiFi doesn’t cost the venue more or less whether or not you use it, so why not list it as a concession?

Many planners are requiring “top tier” wifi access for their attendees as part of their agreement to choose the venue, but if you’re not able to secure it in the contract, make sure you know exactly how much you’re being charged, and how it’s being calculated.

Power

Unlike Wifi, power is definitely something the venue gets charged for the more it uses, so any opportunity it has to shuffle that cost onto its customers, you can bet it’s going to take. This is another one of those items you want to be very sure exactly how much you’re going to be charged. Sometimes it’s a flat rate, others it depends on whether special equipment (extra circuits, power “distros” that AV companies can hook up their gear) is required.

Many cities and states have laws that prohibit the resale of public utilities (aka power and water) so some venues have gotten quite creative on charging for power. Some venues will actually charge you for the use of wall outlets, and even charge you per wall outlet if you use them, so beware. The average attendee looking to plug in their phone for a little extra juice could cost you hundreds of dollars!

Rigging Points

Here we go again with an infrastructure item being used as a source of revenue. Rigging points are permanent positions in the ceiling of a venue from which heavy items such as truss, lighting, speakers, and projectors can be hung. Once installed, these positions are permanent and do not require any unusual maintenance.

But here’s the deal- especially in older venues, these points might not actually exist. Mega-corporation in-house AV companies will approach the venue with an offer of installing them… in exchange for the exclusive right to charge for them. Venues, seeing it as a win-win, agree. “Point charges” can run as high as several hundred dollars, per point, per day.

3rd Party and In-House AV Fees

More often than not these things - WiFi, power, and point charges - are used as incentives to use the in-house AV. “As a benefit of using the in-house audiovisual services, we’re proud to offer your attendees complimentary WiFi, and waive the following fees and charges…” Nice! They might even throw in a 20% “discount” for using the in-house provider. Sweet!

That’s the carrot. If that doesn’t work, there’s the stick. Many venues will charge you a fee for bringing in a 3rd party vendor to handle your AV. If you’ve been reading my past articles, what I’m about to say should come as no surprise...

Always, always make sure to get a comparable bid from a 3rd party vendor (or two) to make sure your in-house bid is fair. Use this as a negotiation point, because much like a lot of the Black Friday sales this year, it’s not a 20% discount if they’ve marked up the price significantly beforehand. Plus, sometimes even with the fee, it can still be cheaper to use a 3rd party.

Supervisor Fee

In addition to the fee charged for bringing in a 3rd party vendor, some venues will require a “supervisor” to be on site when doing so. You, of course, are on the hook for paying for them. This supervisor is there to make sure, theoretically, that all rules and practices required by the venue are being followed to the letter, which usually entails making sure the right color tape is used on the floor.

The short answer to this (and frankly all of these charges) is to negotiate them away at the contact stage. If it’s too late for that, however, you should require that they be there, in the room, doing the job you’re theoretically paying them for - not in the AV office working on renderings for other clients. You’d be surprised how often this requirement goes away when the in-house AV realizes they have to have someone sit in your room doing nothing all day.

The Catch-All Clause

What’s the biggest way to avoid unexpected charges? Make sure everything, everything is laid out in advance. Many planners are starting to add clauses to their venue contracts that say, “if it’s not here, you can’t charge me for it.” I’m not a lawyer (and I don’t play one on TV), so I’ll leave it to the reader to research these types of clauses and what they cover. If you’re going to use one, make sure you read and understand everything in the contract. If you don’t, find a trusted AV partner to give it a once-over before you sign on the dotted line!

Pro Tips for Saving Money on your AV Bill

(An edited version of this article was originally published in MeetingMentor Magazine in Fall 2018. Updated February, 2019)

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If there’s one universal truth for all events, it’s that there’s no such thing as an unlimited budget. Even world-class sporting events and megalithic awards shows have their limits. Every planner, at one point or another, is faced with the limits of their own budget and is forced to find a way to save a few dollars.

There’s plenty of big-ticket items on events: the venue, catering, transportation. Most of those costs are easily understood and can be adjusted based on the level of quality and service desired. If you want to save money on the evening dinner, you may need to change the menu or choose a lower cut of meat for your guests. If you want to save money on transportation, your folks are flyin’ coach!

When it comes to AV, however, far too many planners still just accept “the price is the price” on a bid full of equipment they don’t understand or collapse under pressure from the venue to “just use the in-house”, stacking on fees and charges as disincentives to bringing in your own AV company. There’s plenty of good reasons to use an in-house AV company, but let’s be honest- price isn’t usually one of them.

Let’s take a deeper look into that and a few other ways to save money on your AV bill!

Back to School: Learn More About AV

This one’s probably the more difficult, so let’s tackle it first. I’ve heard so many planners and other event folks say, “Oh, I’m just not techie, I could never learn that stuff.” But here’s the thing… You’ve probably never heard someone saying, “Oh, I’m not French, so I could never learn French.” AV is just a language, and if you just spend a little time learning the lingo, you’re able to enter into a more informed conversation with your AV providers.

If you’re still in school, make sure you find out if they offer an AV 101 class. More and more schools are providing these as part of their hospitality programs, thank goodness! If you’re out of school, take advantage of industry conferences and associations that provide education sessions. Keep an eye out for AV and other tech-related classes. Full disclosure: I teach an online technical meeting production course for planners, but that’s not why I include this point. Education really is one of the best ways to save money on your AV.

Why? Because most of the time when AV providers “bulk up” their order, it’s not because they want to cheat you, it’s because they want to cover their, umm… bases. The more you sound like you know what you’re talking about, the more likely they are to take you at your word that what you want is what you need. That helps make sure you only get the equipment you need, and nothing more thrown in, “just in case”. Your quotes are going to be more accurate, so you’ll truly be only paying for what you need.

House Party: In-house AV vs. 3rd Party

Most experience planners have at least a couple of horror stories when it comes to using in-house AV companies. I always try to remind folks that crew vary wildly from property to property and city to city just like any AV company, so it’s important to take these stories with a grain of salt. There is something that’s true more often than not, however, and that’s in-house AV companies tend to be more expensive. Why? Well, lots of reasons dealing with economics, real-estate, and market differences, but the easy one to understand is this: they’re convenient.

Much like the $8.00 can of soda in the hotel lobby store, you’re paying for convenience. The equipment is all on site in case you need something last minute, and at the end of the show, it all goes on the master bill. No muss, no fuss.

Unfortunately, many venues will discourage you from shopping around and trying to get a lower price. Many will have penalties in their contracts if you choose to bring in a 3rd party company or will revoke certain concessions like free wifi. But don’t let that stop you! No matter what, I always recommend people getting at least one 3rd party bid. They’re almost always less expensive, sometimes even with the penalties and discounts. I once saw a client save almost $10,000 by bringing in a 3rd party AV company, and that included paying the hotel a penalty!

Negotiate, Negotiate, Negotiate

Some people prefer to use the in-house because it’s so convenient, and that’s OK. But you should still get at least one bid from a third party. Why? Leverage. The biggest thing that getting educated and getting additional bids enables you to do is negotiate. An in-house company will more often than not come down in price if they know you’re seriously shopping around. Be tactful, be polite, but don’t be afraid- you don’t have to go all Godfather on them. You’d be surprised how often, “Look, guys. I want to use you, but this other crew is willing to do it for $10k less. Can you at least meet me halfway?” will work!

And if you’re worried about the quality of your crew, one final tip: don’t be afraid to ask for references. We do it all the time with 3rd party AV companies, so why not do it with the in-house? Ask the venue to be put in touch with the most recent clients to use the in-house AV. It shouldn’t be an issue, and it might even be a red flag if they’re unwilling to do so. That might give you more leverage if you’d rather use a 3rd party, as no respectable venue should force you to use a vendor that was getting bad reviews.

What are your favorite tips for saving money on your AV bill?