The event manager organises and holds special events. He or she considers the concept of a future holiday while taking into account generally accepted standards and the wishes of the customer and negotiates with restaurants, concert agencies, hotels, and travel agencies, including negotiating a contract with a venue.
About a venue contract
A contract is very important for spelling out what both parties’ responsibilities are in planning, holding, and ending the event. The venue contract guarantees the payment services necessary to hold the venue for the specified date of the event or wedding and is payable at the time of signing the contract.
What can you negotiate?
There’s so much to discuss while making a contract between an event planner and venue. The contracts with the musicians, caterer, and venue clearly spell out who is at fault and what happens when agreed-upon elements are mishandled, etc. Also, keep in mind the contract components. The main components of a contract are as follows: Preamble, Recital, and Words of Agreement. Definitions, Action Section (Consideration), etc., however, may differ and be named differently from contract to contract.
Parties entering the agreement
A venue booking contract party or contracting party is an individual or business who enters into a binding agreement with another contracting party, thus accepting the obligations, responsibilities, and benefits specified within the agreement.
Dates of the event
The event venue agreement serves as an agreement between the parties. It becomes effective on the specified dates and involves services provided for the event, which will be held on another date. This date should be included into the contract.
Facility area to be used (guest rooms, meeting space, parking, etc.)
In order to finalise a reservation, a signed rental agreement for any additional spaces, any entrances or exits, or other areas that are immediately adjacent to the event, these should be mentioned in the contract.
Deposit and payment requirements
How much money do you need for a deposit? Are there any extra fees? What are these fees for? In other words, the contractor should make sure the payment is always made ahead of the work that needs to be done.
Food and beverage functions
This part of the contract enables compliance with safety regulations and the utilisation of dynamic pricing across contracts for food, beverages, or catering.
The level of staffing you’ll be assigned
Discuss how to assign work shifts, plan resources, and manage no-shows, delegates, and so on. Also discuss your workforce size, scheduling complexity, and level of automation, if any, etc.
Different additional opportunities and services
There are opportunities in nearly every industry niche, from technology to fashion, that may also be used at events. Make sure to include venue rental contract details to negotiate.
Remember that a contract is always an agreement, so it will give rise to obligations that are enforced or recognised by law. Abide by your state laws while making contracts and following their obligations.
Finally, you will see what should be included in a venue contract negotiation and how you may be able to cancel an event, which may be cancelled with no charge up to seven full business days prior to the event. Or you can set any other conditions you like, such as cancellation of services made less than three full business days prior to the event will be charged 50% of the contract, etc.
How to negotiate a venue contract
So you want to know how to negotiate a venue contract? Let’s discover the key points.
Rules of negotiating
Apply business negotiation rules if appropriate. Keep in mind the following areas: preparation of negotiations, the choice of means of negotiation, establishing contact between the parties, the negotiation process beginning, identifying options for agreement, etc.
Ask for a proposal without giving them your budget numbers
Knowing your client’s budget up front is essential to qualifying them as a lead income source. However, some prospects will be hesitant to discuss their numbers with you.
Don’t focus on only one venue but get multiple proposals
You can apply the same venue to multiple agenda items. Even if you start off with only two budget options (say a high and a low), don’t think of the venue only. Try to find something else that can be included.
Don’t rely on a strong sales pitch
You will need a strong foundation for delivering your sales pitch. However, remember that people are not always willing to read or listen to long recitations about your sales intentions and income rates, etc. Simply choose the best information you need to share with them.
Use the Internet
Used effectively, e-mail and the web are good communication channels that business executives can use for negotiations. Use Internet sources to fill in the gaps in your negotiation knowledge.
How to get the best price
You’re effectively paying for an asset you’ve already purchased. Once your contract is up, then you have a choice to make. If you’re happy with your existing event contract conditions, you can switch to a cheaper deal or a pay-as-you-go tariff as a loyal customer, or you can haggle for a better deal. Either way, you should be able to slash your monthly bill by negotiating with your event vendors.
Mistakes to avoid
There are some mistakes to consider while negotiating your venue contract for the event:
- Failing to protect your freedom of choice
You want the ability to evaluate and select the best service partners, so ensure you are proactive about protecting that right at the contracting stage. You should proactively provide terms for the venue contract that preserves this option with no additional stipulations, fees, or penalties of any type.
- Not carefully considering the details
One huge mistake event planners make is not carefully reviewing or considering all the costs of their event before signing on the dotted line.
- Forgetting to cover the “what ifs”
A backup plan is always necessary as a way out. Go through the contract to ensure you are protected if any “what if” scenarios arise.
Tips for negotiating your event venue contracts
Use our tips to find reliable contractors and also to avoid making any mistakes while negotiating with them.
- Understand your industry’s distribution channels.
- Research and try out your potential contractors first.
- Have a productive first contact with a vendor.
- Try searching for alternatives on Google.
- Look for more venue propositions.
- Don’t be afraid to try and make mistakes.
- Use venue agreement contract templates and samples.
The availability of a large number of good suppliers provides a choice and a low-cost contract. These are the major objectives for successful events organisation, so take your time to research them and choose the one that’s the best fit for you.
Event venue contract template
An event venue contract template will help you better understand what should be in your contact and what parts are the most essential.
Call to action
Negotiate a contract with a venue wisely with the help of a reliable event platform and smart and competent event planning experts.
A long-term relationship with suppliers allows for optimising funds and resources since there is no need to renegotiate, retrain personnel, increase staff, etc. To achieve that, you should be ready to negotiate and create a perfect contract for your event venue. Manage to achieve the maximum profit and long-term partnerships with a team, abide by the local laws, and stay in love with your event planning work through developing a wise contract.
Feel free to ask for help at any time!