Q&A with the Experts

In our last post we established the importance of being legally protected and legally “advised” at every moment in any type of industry. However, like we have discussed before legal terms, clauses, and agreements vary according to the industry, service and/or product being provided to the public. Dive In! Events, Conventions, & More… had the opportunity to discuss in a Q&A with attorney at law Maranyeli Medina about the legal system regarding small businesses in the event planning industry.

Our Attorney:

Maranyeli Medina is a law school graduate from the Universidad Interamericana of Puerto Rico. Ever since she was a child she was intrigued by the excitement and drama of the courtroom. As a young adult still in her undergraduates’ program she realized her passion for law and justice, realization that made her decide and pursue law as a career. She expresses her love and passion for what she does with great excitement and how being an attorney allows her explore and experience many different areas and different cases. Her goals as an attorney include achieving maximum excellence in professional performance and that each person who seeks her help can leave feeling comfortable and believing in the justice system. 

Dive In: If a legal situation arises involving a corporation v. an individual, knowing that the case’s outcome depends on the legal matters involved, does the corporation have the advantage because they have a better legal team?

Medina: Not necessarily, although having a high purchasing power has a direct correlation with the ability of hiring a good lawyer this is not always the case. However, at times legal teams who represent big companies and/or corporations are so high in demand they dedicate less time to prepare themselves. In addition, in cases of breach of contracts, for example, the justice system provides the necessary means of legal protection for the weaker economical class.

Dive In: Have you ever heard of a legal case involving an event planning company? If so, is it common in court?

Medina: Yes I have. However, I rarely see these types of cases in the courtroom.

Dive In: Knowing that event planning companies rely mostly on their relationships with clients,. How important is having a personalized contract / agreement with every client? 

Medina: It is extremely important. A well-written contract is one less claim in case of a trial. Remember that contracts must consist of clear and accurate terms and it is best that at the time of reaching an agreement both parties come to the negotiating table in good faith and clearness.  

Dive In: Is it more “legally” convenient to have a generic contract? Yes or No? Why?

Medina: You can have a general agreement and / or contract but it is preferable to personalize contracts based on the specific circumstances of the case or situation.

Dive In: What clauses do you consider that should be “must haves” in contracts for event planners? 

Medina: Clauses that provide protection in case of a breach or non-compliance. Also, depending on the case I think it would be good to include an arbitration clause. (An arbitration clause is a commonly used clause in a contract that requires the parties to resolve their disputes through an arbitration process. Although such a clause may or may not specify that arbitration occur within a specific jurisdiction, it always binds the parties to a type of resolution outside of the courts, and is therefore considered a kind of forum selection clause.)

Dive In: Signed agreements, for example releases, help event planning companies have very small liabilities. What else can we do, in order to avoid being sued for liabilities? What other measures do we take? 

Medina: I believe that if you have a good, solid, clear agreement or contract without any room for misinterpretation or miscomprehension, you should be fine.  

Dive In: What are some legal measures, being a small business, we have to consider that we haven’t mention before? 

Medina:  In my opinion, I will continue to insist on the importance of a good contract. Dealing mostly with clients and customers, an event planning business must rely on a very solid contract.

Dive In: What do you recommend party planners to do in any legal case? 

Medina: My legal suggestion is to always try to reach a mutual agreement or compromise instead of litigation. This way both parties save a lot time and money. If this does not work, turn to litigation as soon as possible.

Dive In: How important it is to trust your lawyer? Safety in numbers... the more lawyers you have, the safer you are? True or False? Why?

Medina: Absolute confidence in your attorney is a must. You must be completely honest with your representation in order to conduct the case in the most effective manner. Regarding safety in numbers, when it comes to attorneys, the client always has the freedom to pursue various legal opinions regarding their situation. However, I don’t believe that because you have more lawyers you have a better hand, this is relative and depends on the situation.

Dive In: In your opinion, what is the biggest legal myth in the legal system? 

Medina: To me one of the biggest legal myths is when an adverse outcome is considered to be an equivalency to a failed justice system. Individuals must understand that many factors affect a court’s decision or a case outcome.

Dive In: Taking into consideration that a business may be based in Puerto Rico, does corporation laws differ a lot? Yes or No? Why? 

Medina: They are not dramatically different, but when we take into consideration corporate law we have to understand that the legal system has established some general principles to follow. However, we have to understand that the laws of the jurisdiction govern corporations where they are incorporated, which is not always where the “ principles” were established.

As you can see it doesn’t matter what type of business you own, being legally insured and oriented gives you a corporate advantage and security. Ms. Medina also pointed out during the interview that the law system, like everything in life, has room for improvement, for example, getting up to date with technology and taking advantage of the benefits that these advances provide society nowadays. Dive In! Events, Conventions & More.. would like to thank Ms. Medina for taking the time and answering our questions helping us understand the legal world.  Event planners make sure you are legally advised and oriented in order to be safe from any legal situations, make sure to always seek legal help and advising in order to avoid any legal problems. Remember, KEEP IT LEGAL!

Reference:

Photo: http://www.thebillablehour.com/timesheet_08_07.php

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Keep it Legal!

Being legally secured and insured is a must for running any business either small, big, private, public, etc. no matter in what type of industry. Nowadays, company owners have to be extra careful with their contracts and insurance. Having the access and knowledge to a vast amount of legal information, people are doing anything and everything to keep themselves out of any legal situation. The event planning industry is no exception; numerous lawsuits and legal situations occur everyday in this area of the entertainment world.

Having the vision to create a corporate specialized event planning company in Puerto Rico, entails a lot of paperwork and most importantly, making sure my insurance is up-to-date and that I am covered from any possible liability. Nevertheless, nothing is certain and things happen.

For example, in 2010 an adult entertainment convention company sued Secaucus’s former mayor, Dennis Elwell and the Meadowlands Expo Center, over being forced to move a 2008 tradeshow from the town to Edison just days before the event. The company sued to regain its $32,500 deposit and an unstipulated amount for their losses for moving the 3-day show to another location. The situation began when Secaucus filed a lawsuit to ban the trade show from the town, citing violations of municipal and state ordinances on alcohol and proximity to a day-care center. The event company representatives say in the lawsuit that everything about the event was approved, and claim that the convention center officials later denied knowing details of the trade show. Situations like these can be avoided with more detailed and more specific contracts.

Other examples include a case where an event planner in Atlanta settled an out-of-court agreement with the Academy of Motion Picture Arts and Sciences over the use of a gold statue, which according to the academy infringed on the copyrighted “Oscar” statuettes. Another example is a lawsuit by MGM’s Grand Hotel in Vegas filed against a New York based event planning company for not paying what they owe for a charity event hosted at the hotel in 2007. Both situations can be avoided taking the necessary legal measures and precautions.

Legal situations can be avoided in most cases. Attorneys recommend party planners to always have a lawyer, “especially one that practices intellectual property law” and when in doubt make sure you discuss and clarify any legal matter with them. So, party planners take notes and make sure you protect yourself and your business. Legal information is accessible, so there are no excuses. Good luck and keep it legal.

Reference:
http://www.nj.com/hudson/index.ssf/2010/09/secaucus_hartz_mountain_sued_o.html
http://specialevents.com/news/planner-threatened-with-lawsuit-over-oscar-style-decor/
http://www.lvrj.com/business/22803794.html
http://www.translucid.ca/site/2010/12/03/when-events-go-wrong-what-do-you-do/
http://www.mindingthecampus.com/originals/2011/02/how_the_law_schools_went_astra.html

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Trade-Shows Go Green…

In today’s society going green is in. Of course the event planning / convention / conference industry is no exception. New ways of creating exhibitions have been developed in order to save money and support the new trend of becoming environmentally conscious.

These green exhibits, also known as sustainable exhibit booths, should minimize the environmental impact. Depending on the size of the trade show or convention, these new modern booths can be made either small or large. However, it all depends on the needs of the organization that will be purchasing and utilizing the booth. Today, many are focusing on making sure that their exhibits and booths are sustainable and ultimately result in a lower potential waste. Creating an environmentally-friendly atmosphere and look. The key of creating a sustainable exhibit relies mainly on the materials used in the production process.  Incorporating elements like Swiss wood (a renewable resource and net remover of carbon dioxide from the atmosphere), low energy lighting, using recycled paper as materials, and organic foods and beverages.  Practicality is the main focus of this new trend.

Places like Switzerland have already incorporated this new environmentally friendly trend in numerous conventions and trade shows. In 2010, the Switzerland Convention and Incentive Bureau (SCIB) received the IMEX 2010 Green Exhibitor Award due to their sustainable exhibits. In addition, companies like Evo Exhibits and  Skyline Exhibits,  create top-of-the line eco friendly trade show displays, exhibits, and booths. Skyline Exhibits, located in Minnesota, USA, have created a 2-facet method of creating sustainable exhibits.

“Skyline contributes to environmental sustainability in two ways: By providing lighter weight, modular exhibits that have smaller environmental impact than traditional custom exhibits, and by minimizing the impact on the environment from our manufacturing operations.


These two facets -- lightweight modular exhibits, and more environmentally friendly manufacturing, can be viewed through the lens of Reduce, Reuse, Recycle.”

As you can see new trends and new ideas are being incorporated in the event planning industry. Helping the environment concerns us all, and what better way than helping with little details like this. This is not only a great way to be environmentally conscious but it is a great way to develop a positive corporate image and PR, sending the message that you do care. Event planners and organizers should be applying new trends like this for their green conscious clients. I am sure ideas like this will make them very happy and pleased. Remember, keeping an open conscious about the world and trying to become more conservative is the way to save money.

On the following video you can see how a sustainable exhibit can look like and what materials are used. Video by Evo Exhibits, another green display production company. 

References:

Information:

http://www.skyline.com/green-exhibiting/skylines-contribution

http://eventplanning.about.com/od/productionentertainment/ss/sustainable-trade-show-booths-minimize-environmental-impact.htm

http://athensmidday.scrippsjschool.org/index.php?option=com_content&view=article&id=226:going-green-is-athens-new-thing&catid=10:reporter-blogs&Itemid=4

http://www.evoexhibits.com/

Pictures:

http://www.advatumdisplays.com/

http://www.flickr.com/photos/abidoan/4125130333/

http://www.homorazzi.com/article/on-your-way-to-becoming-an-eco-gay/

http://www.degreeofhonor.com/pages/Greent.html

Video: 

Courtesy of  Youtube - http://www.youtube.com/watch?v=SnwL--fGHeY

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Posted in: Go Green,Sustainable Exhibits,Trade-Shows,Trends

Meet the El Conquistador Resort

One of the greatest privileges humans have is the liberty of constantly choosing different options in any given situation. Whether if its choosing right from wrong, black or white, right or left, good or bad, chocolate or vanilla, etc. Using the corporate world as an example, thinking outside the box and doing things differently can sometimes help establish new ideas, determine new points, and ultimately reach goals and objectives faster, more efficiently, in a fun, unique and entertaining way. This is why corporations and/or companies should explore new venues and destinations for their corporate gatherings. Feel free to explore all the choices and different opportunities the beautiful island of Puerto Rico has to offer for your corporate events, conferences and/or conventions. I guarantee your event will be a total success. 

Fajardo, Puerto Rico

Say hello to the El Conquistador Resort, a Waldorf Astoria Hotel Resort. Perched high above the ocean on 300-foot cliff, El Conquistador is one of the most luxurious resorts in the Caribbean, located in Fajardo,Puerto Rico. 

Resort Accommodations

It is divided into five villages, with breathtaking, panoramic ocean views at The Grand Hotel including the villages of Las Brisas and La Vista. The resort is located on the northeastern tip of the island, near El Yunque Rain Forest. It is 4 miles away from stores and attraction of downtown Fajardo and Las Croabas. It counts with an on-site-world-class golf, spa, casino, water park, wind surfing, scuba diving, fishing and more. It even has its own private island, Palomino Island, just a 8 minutes boat ride (provided by hotel for guests) where guest can relax and enjoy the sun, beach, restaurants, water sports and more. El Conquistador Resort is located 31 miles from San Juan (the Island’s capital) and the Luis Muñoz Marín International Airport (SJU).

Atlantic Conference Center 

Grand Atlantic Ballroom - 21,090 sq ft

In addition, El Conquistador Resort has all the commodities and accommodations that your company may need to conduct your next event, trade show or convention in the brand new state-of-the-art Atlantic Conference Center. You can host a function in the Grand Atlantic Ballroom, the largest ballroom in Puerto Rico with a space of 21,090 sq ft; or on the smaller Grand Caribbean Ballroom with 19,982 sq ft space. Your company has the opportunity to hold a board meeting in one of the 16 breakout rooms or meet in one of the 100,000 sq ft of indoor /outdoor meeting space.The resort also offers professional event planning staff and catering services for any event, luncheon, or dinner, etc.  El Conquistador also offers numerous business amenities and services, which include, audio-visual equipment rental, printers, fax, Wi-Fi, and more.

This is ultimately one of the top 5 resorts in the Caribbean, with top-of-the class facilities and services.  Remember U.S citizens: you don’t need your passport to travel to Puerto Rico, we are a U.S territory. (For more information on Puerto Rico's culture, climate, location and more Click Here) This is a great option for your company or corporation's events to be unique, fun and entertaining. For more information on the resort visit their website or click here. I urge you to consider this great venue and destination; I guarantee you won’t regret it. “ Life is anything, but square. So, why think inside a box? – Unknown

 

Enjoy the following clip with a more inside look of this great resort.

El Conquistador Resort Official Website

Sources:

El Conquistador Resort Official Website - http://www.elconresort.com/index.cfm

Video:

El Conquistador Resort - Puerto Rico - Waldorf Astoria Collection 

http://www.youtube.com/watch?v=co1LLQ99KwE

Pictures:

http://www.uigolf.com/custom_logos/?1=e 

http://jordanpicture.blogspot.com/2010/12/el-conquistador-resort-in-fajardo.html

http://www.privateislandsblog.com/2009/11/16/family-friendly-private-island-resort/el-conquistador/

http://blisstree.com/feel/wedding-venues-puerto-ricoel-conquistador/

http://averylanedesign.com/blog/

http://www.skulpt.com/3d-animator-career-options.htm

 

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A Client's Point of View in Negotiations: Event & Convention Planners Take Notes!

What event & convention planners should know about their clients to have successful negotiations...

For the event and convention planning industry negotiating is everyday’s cup of coffee. Negotiating prices, dates, themes, entertainment, client contracts and more is done on a daily basis. This is why having knowledge on deal making tactics and methods are vital in this type of industry. Although it is imperative for event planners to understand and know how to execute a successful negotiation, do they know what their clients are thinking? What are their key strategies when it comes to negotiating? In this interview with Mr. Angel L. Rodríguez we will explore what customers do, avoid and look during the negotiating process when dealing with event, conventions, and/or trade-show planners. Remember, knowing the other persons needs, interest and wants are results in as a great advantage for the other negotiator. Therefore event planners take notes!

We had the opportunity of talking with Mr. Angel L. Rodríguez, Vice-President of Roger Electric Co. in Puerto Rico. He is also head of the convention and activities committee of the Professional Engineer Association in Puerto Rico (CIAPR). Mr. Rodríguez often uses event planner services for both his business and the association activities. During this interview we asked Mr. Rodríguez about his approach when it comes to negotiating with his event planner, his expectations, tactics and results.

When it comes down to choosing and closing a deal with an event planner, how do you approach your event planner when dealing with prices, fees, and contracts?

I tend to use an aggressive approach. Doing previous research on prices and fees makes me have an advantage on how much I ask and on how much I can settle for. Sometimes insinuating that we have other options makes prices, fees and contract clauses come into more agreeable terms.

What do you expect from your event planner, when it comes down to agreeing on a deal? Mutual gain? More benefits for you? Or more benefits for the event planner?

Every time I negotiate I prefer ending with a win-win situation, this way you can be satisfied with your deal and the dealer will be pleased with the final outcome. This also guarantees future business opportunities for other activities for both parties. Mutual gain is my best bet.

Do you have a back up plan or BATNA, at the time of the negotiation? How do you approach the planner with this information? Do you use the BATNA as leverage in order to get what you want?

When it comes to negotiating, either with a party planner or with anybody business wise, you always have to have a back up plan. Now, the key is trying to obtain what you want without being too obvious. I tend to notify before hand that I have certain options, but I will be more than welcome on listening to what they have to offer me. This was the person feels that his or her offer is being considered and that they have a chance of making a deal. This often results with pleasing numbers and a successful deal.

What do you prefer, having a good “friend like” relationship when it comes to negotiating or do you prefer establishing roles and status from the get go?

This is very complex because it depends on the situation. I think the best way to approach a negotiation is establishing the points and terms from the beginning. This is when separating the person from the problem comes into play. I believe that keeping a professional and trustworthy relationship is the best way to do negotiations.

Has someone used any dirty tricks or tactics in order to close a deal? Have you used any? What was the outcome of the negotiation?

I don’t believe in dirty anything. Using dirty tricks or tactics is very unsuccessful. Maybe you can trick someone once but it wont work again, this is when negotiations go wrong. Being as straightforward and honest as possible is the best way to end up with what you want.

If you had to summarize your negotiating techniques, what is the most important one and most successful in your opinion?

Like I said before every negotiation is different and the approach varies. I usually tend to wait for the other person to make the first move, this allows me to know if they are benefiting from the situation and allows me to re-negotiate something better. I usually prefer doing the early process of my negotiations through email but at the moment of closing the deal I prefer a personal encounter. I do believe enormously in the value of a handshake. This can go either wrong or extremely well, but I do think that this old fashion trend keeps things classy and professional, it all depends on the relationship and trust both parties have acquired. Being prepared for every negotiation also gives you an advantage. I strongly recommend reading “The Art of Negotiation”, by Gerard Nierenberg. This book has really helped me with my negotiation tactics not only with entertainment activities but with my business as well.

I have to agree with Mr. Rodriguez, tactics, techniques, and approaches vary depending on the situation and the negotiation. However, doing research, knowing the other persons’ needs and wants definitely makes you feel more confident at the time of the negotiation. Being prepared is the key of a great negotiation. Hopefully, now with this blog event and/or convention planners can have a better view of how their clients operate, what they look for, and how they approach negotiations. Good luck and happy negotiating! Special thanks to Mr. Rodriguez for taking the time and answering our questions.

Resources:

Roger Electric Co. - http://www.rogerelectric.com/

CIAPR - http://www.ciapr.org/

The Art of Negotiation - http://www.amazon.com/Art-Negotiating-Gerard-Nierenberg/dp/156619816X

 
 

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Top 5 Convention Centers in the U.S

Although, I am encouraging everyone to consider the beautiful island of Puerto Rico as one of your choices for hosting your event and/or convention, here is a Top 5 list of the best convention centers in the United States.  

Number 5: Hawaii Convention Center in Honolulu (250,000 sq. ft of exhibit space)

The design of the glass-front center represents the unique culture of Hawaii, with its bold architecture, $2 million Hawaiian art collection, and features such as a rooftop tropical garden, glass-encased meeting rooms and outdoor function spaces lined with giant palm trees, make this convention center a very pleasant one. You can find 10,000 committable hotel rooms within 1 mile of the center. The Honolulu International Airport is conveniently located 9 miles West of Waikiki Beach, 4 miles West of Central Honolulu and 7.5 miles West of the Hawaii Convention Center. Hawaii’s currency is U.S. dollars and main language is English. In addition, Honolulu (capital of Hawaii) has been ranked one of the safest in the nation.

(For more information on the Hawaii Convention Center click here) 

Number 4: Georgia World Congress Center (1,500,000 sq. ft of exhibit space)

Located in the heart of downtown Atlanta, the Georgia World Congress Center Authority, which includes the 3.9 million square foot convention center, the 71,250-seat Georgia Dome and 21-acre Centennial Olympic Park.  This convention center ranks among the top five largest convention destinations in the country as well as one of the best sports and entertainment campuses in the world. The Georgia World Congress Center opened its doors in 1976 as one of the nation's premier convention facilities with 350,000-square-feet of exhibit space. Over the years, the Georgia World Congress Center underwent numerous expansions to meet the needs of growing conventions and special events.

(For more information on the Georgia World Congress Center click here) 

Number 3: Minneapolis Convention Center (600,000 sq. ft of exhibit space)

The Minneapolis Convention Center (MCC) has nearly 480,000 square feet of trade show space, 87 column-free conference meeting rooms, a 28,000-square-foot ballroom, and an auditorium with great production and flexible technology options, the facility can handle any event from a small meeting to a large convention or trade shows. It is located close to freeways and only 20 minutes from the airport on the southern edge of downtown Minneapolis. In addition, this trade show and event center is connected by climate-controlled skyways to the downtown hotels, restaurants and shopping. One of the great things of this convention center is that recently they have acquired new solar panels. The panels are fully installed, and the system is fully running as of mid-November 2010. This is a great option destination for the new “green” conventions and/or trade shows.(For more information on the Minneapolis Convention Center click here) 

Number 2: Las Vegas Convention Center (1,040,000 sq. ft of exhibit space) The Las Vegas Convention Center is a 3.2 million square foot facility located within a short distance of more than 100,000 guest rooms. Operated by the Las Vegas Convention and Visitors Authority (LVCVA), the center is well known among industry professionals for its versatility. It also counts with 144 meeting rooms, handles seating capacities ranging from 20 to 2,500. A grand lobby and registration area link existing exhibit halls with new exhibit and meeting rooms, and allowing simultaneous set-up, breakdown and exhibiting of multiple events. The LVCC is one of the largest convention centers in the world. Having the availability and the capacity for thousands of people, the Las Vegas Convention Center is one of the top choices for bigger companies and for the world’s largest trade show companies.(For more information on the Las Vegas Convention Center click here) 

Number 1: Orange County Convention Center (2,000,000 sq. ft of exhibit space)The Orange County Convention Center is one of the nation's ten largest convention centers having an amazing 2,000,000 square feet of exhibit space. In its entirety, the Orange County Convention Center features:

• Two 92,000-square-foot general assembly areas

• 74 meeting rooms/235 breakouts

•  The 2,643-seat Chapin Theater

•  A 200-seat Lecture Hall

• The 62,000-square-foot (multi-purpose Valencia Room
• Three full-service restaurants/8 food courts

• Three-business centers
• In-house electric, plumbing, rigging and technical services, plus wireless mobility throughout the complex
• On-site parking for 6,227
• Three covered loading docks/173 truck bays

The OCCC is located 11 miles southwest of downtown Orlando in the middle of Orange County's tourism core. The Orange County Convention Center is within walking distance of more than 6,000 hotel rooms, and within 45 minutes driving distance to more than 86,000 hotel rooms in the Orlando area. In average, the OCCC hosts approximately one million delegates annually and provides a $1.9 billion dollar total economic impact annually to the Central Florida economy, all at no cost to Orange County Citizens.(For more information on The Orange County Convention Center click here) 

It is certain that all the convention centers listed above have all the qualities and attributes that your company, business or industry needs to host an excellent and top-of-the class event, convention and/or trade show. They all have an impressive amount of exhibit space and top of the line technology. It all depends on your market and the objectives and goals of your event.

*Remember to consider Puerto Rico as one of your destinations for hosting these type of events. For more information on venue opportunities and entertainment in Puerto Rico feel free to browse through the blog. 

Resources: 

-Hotel & Conventions http://www.hotelsconventioncenter.com/

-Hawaii Convention Center http://www.hawaiiconvention.com/

-Georgia World Congress Center http://www.gwcc.com/Default.aspx

-Minneapolis Convention Center http://www.minneapolisconventioncenter.com/

-Las Vegas Convention Center http://www.lvcva.com/index.jsp

-Orange County Convention Center http://www.occc.net/default.asp

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Posted in: Conventions,Top 5,Tourism

Event Planning? How to Benefit your Pocket!

The special events industry has grown enormously during the last two decades. The annual spending of events worldwide is estimated to be at $500 billion. It is no secret that the economic status worldwide of businesses and companies is not at its peak. Therefore, the need to keep employees and clients interested and motivated is crucial in a time like this. In addition, companies have recognized that only so much work can be conducted thru the phone, texts, and emails. This is when the ideas to create special events, seminars, meetings and/or conventions are taken into consideration. 

Now that we have established the need and importance of the production of corporate events, let's establish how an event planning company makes its revenue. According to the web article, How to Start an Event Planning Service, at entrepreneur.com, it is crucial to know that the goal in pricing a service is to mark up your labor and material costs sufficiently to cover overhead expenses and generate an acceptable profit. It is said that first time business owners often fail due to unknowingly low service rates, therefore make sure you are gaining profits from your services. 

There are two types of events; social and corporate, for our interest we will focus on corporate events. On the corporate events industry planners typically charge a fee for their services, plus a handling charge for each item they contract. Another option is charging clients a "flat fee" or a "project fee", this is often used in large events and/or when corporations want an estimated figure to stay on budget. 

Fees are generally determined by three factors. 

1.              Market Segment (Corporations- using flat fees)

2.              Geographic Location (For example, fees are higher in the northeast part of the United States)

3.              Experience and Reputation of the planning company (If you are starting out it is only reasonable to charge a lower service fee) 

This is why knowing your target market and doing your market research is so important. Most event planning companies’ price their fees-for-service using the Cost Plus Method (CPM), it involves calculating the unit cost of producing the product and adding on a target profit margin. This means, that you contract out the labor, supplies and materials involved in producing an event and then charge clients a service fee of about 10 to 20 percent of the total cost of the event, with 15 percent being a rough average. However, in order for your company to know the final net income, I advise you to produce a pro forma (for more information on Pro forma click here) this will determine how your company will make its revenue, determine expenses and much more.

Below is an info graphic of the event planning industry you might like. Enjoy. 

By: Melanie Rodriguez / Market Research 

Resources:

- http://www.entrepreneur.com/article/37892-5

-http://www.laurieco.com/html/cost_plus.html

-http://www.businesstown.com/accounting/projections-statements.asp

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Posted in: billing,Conventions,corporate events,finance,Income