| Date post: | 12-Nov-2014 |
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#toursanmarcos @PYMLive @JeffRasco
Contract Negotiations: Beyond the Basics
Kristi Casey Sanders @PYMLive Jeff Rasco @JeffRasco#toursanmarcos
https://www.flickr.com/photos/stevensnodgrass/5480863464
Special thanks to these PYM LIVE speakers
Melissa Washington - SmartNet StrategiesJoyce J. Ginsburg - JJG MeetingsChristy Lamagna, CMP, CMM, CTSM - Strategic Meetings & EventsPaula J. Rigling, CAE, CMP - Meeting Planning Professionals
#toursanmarcos @PYMLive @JeffRasco
What will be covered in this presentation
1. Reminder: The power of relationships2. Contract elements, what affects them & things to consider3. Concessions: group discussion, sharing & tips4. Addenda: group discussion, sharing & tips5. Additional resources
#toursanmarcos @PYMLive @JeffRasco
Disclaimer: I’m not a lawyer
This is for educational purposes only. :)
#toursanmarcos @PYMLive @JeffRasco
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
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#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
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://fa
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#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
• Communicate what you value and why.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
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#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
• Communicate what you value and why.
• Don’t be afraid to ask questions.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
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aticfl
ickr.c
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6674
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67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
• Communicate what you value and why.
• Don’t be afraid to ask questions.
• Know what are your “must haves,” “would like to haves” and “can live withouts” and negotiate accordingly.
http
://fa
rm8.
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icflick
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/700
1/66
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aticfl
ickr.c
om/7
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6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
• Communicate what you value and why.
• Don’t be afraid to ask questions.
• Know what are your “must haves,” “would like to haves” and “can live withouts” and negotiate accordingly.
• Protect yourself and your group. Nothing “never happens.”
http
://fa
rm8.
stat
icflick
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/700
1/66
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_171
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aticfl
ickr.c
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6674
1986
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7139
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#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
http
://fa
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stat
icflick
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/700
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#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
• This isn’t personal. It’s business.
http
://fa
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stat
icflick
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/700
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#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
• This isn’t personal. It’s business.
• Work with your sales contact to find benefits for both sides.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
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6674
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67_1
7139
2d86
5_b.
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#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
• This isn’t personal. It’s business.
• Work with your sales contact to find benefits for both sides.
• Have a back-up plan.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
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6674
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67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
• This isn’t personal. It’s business.
• Work with your sales contact to find benefits for both sides.
• Have a back-up plan.
• Know that sometimes you have to walk away.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
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_171
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#toursanmarcos @PYMLive @JeffRasco
What goes into a contract?
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
• Number of guest rooms needed
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
• Number of guest rooms needed
• Function space requirements
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
• Number of guest rooms needed
• Function space requirements
• Food & beverage needs
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
• Number of guest rooms needed
• Function space requirements
• Food & beverage needs
Each of these areas must be addressed before the contract is signed!
#toursanmarcos @PYMLive @JeffRasco
Addenda may be necessary for areas not addressed. Work with legal and procurement to create set addendum.
#toursanmarcos @PYMLive @JeffRasco
Dates
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#toursanmarcos @PYMLive @JeffRasco
Dates• Time of year (what else is happening)
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64
#toursanmarcos @PYMLive @JeffRasco
Dates• Time of year (what else is happening)
• Off-season/in-season
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s://w
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/pho
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joela
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1900
64
#toursanmarcos @PYMLive @JeffRasco
Dates• Time of year (what else is happening)
• Off-season/in-season
• Sales quotas (weak dates)
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s://w
ww.
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/pho
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joela
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1900
64
#toursanmarcos @PYMLive @JeffRasco
Guest rooms
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/pho
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309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
http
s://w
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com
/pho
tos/
ww
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/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
http
s://w
ww.
flickr.
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/pho
tos/
ww
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/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
http
s://w
ww.
flickr.
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/pho
tos/
ww
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/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
• Suites for executives
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
• Suites for executives
• VIP guests
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
• Suites for executives
• VIP guests
• Speakers
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
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309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
• Suites for executives
• VIP guests
• Speakers
• Vendors, etc
http
s://w
ww.
flickr.
com
/pho
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ww
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/963
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309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
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/pho
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309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
http
s://w
ww.
flickr.
com
/pho
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ww
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/963
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309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
• Will there be a special staff rate?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
• Will there be a special staff rate?
• What’s included in the resort fees? Are those amenities your attendees need?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
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/963
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309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
• Will there be a special staff rate?
• What’s included in the resort fees? Are those amenities your attendees need?
• Do you need to negotiate a commission to go back towards your association, personal payment (for independents) or client?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
• Will there be a special staff rate?
• What’s included in the resort fees? Are those amenities your attendees need?
• Do you need to negotiate a commission to go back towards your association, personal payment (for independents) or client?
• Do you need VIP upgrades? Airport transfers for attendees?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - relationships• Maintain an excellent relationship with your
Convention Sales Manager because …
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - relationships• Maintain an excellent relationship with your
Convention Sales Manager because …
• Can they sell the rooms you can’t fill?
!
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - relationships• Maintain an excellent relationship with your
Convention Sales Manager because …
• Can they sell the rooms you can’t fill?
• Do they need to bump a group?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - relationships• Maintain an excellent relationship with your
Convention Sales Manager because …
• Can they sell the rooms you can’t fill?
• Do they need to bump a group?
• Can you make good another year?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
Que
ridian
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ns q
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#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
Que
ridian
Sol
utio
ns q
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ian.c
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#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
• Risk management
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
• Risk management
• Back-up weather plans
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
• Risk management
• Back-up weather plans
• Attendee mobility
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
• Risk management
• Back-up weather plans
• Attendee mobility
• Outdoor lighting/walkwaysQ
uerid
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olut
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#toursanmarcos @PYMLive @JeffRasco
Food & beverage
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/pho
tos/
mat
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231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
http
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flickr.
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/pho
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skills
/889
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231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
• What type of functions are required?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
• What type of functions are required?
• What does your group like?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
• What type of functions are required?
• What does your group like?
• Can the chef prepare something for your budget?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
• What type of functions are required?
• What does your group like?
• Can the chef prepare something for your budget?
• Can you use smaller cups / plates to save money?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
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skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Group discussion: Concessions What concessions are important to your group? What are you asking for and getting? What do you have to compromise on?
#toursanmarcos @PYMLive @JeffRasco
Time to share: Concessions
• What’s important to you and your group/company?
• What are you asking for and getting?
• What are you having to compromise on?
#toursanmarcos @PYMLive @JeffRasco
Concessions - Tips from PYM LIVE San Francisco, Chicago & Austin
• What’s important to you and your group/company?
• Free Wi-Fi in sleeping rooms and meeting space
• Discounted F&B
• Free parking
• Free water
• VIP amenities / free room drops
• A/V discounts
• No resort fees
• Free airport transfers
• Free staff meals
• Free staff rooms
• Load in/load out dates
• Waived shipping/receiving fee
• No meeting room rental fee
• Free business center
• No fee for bringing own projector, laptops, tech people, etc.
• Reduced vendor/hotel commission on A/V
• No corkage/reduced corkage fee for wine brought in
• Locked in F&B pricing for future events
#toursanmarcos @PYMLive @JeffRasco
Guest rooms • What’s the cut-off date to reduce your room
block? (ex: 15-20% reduction possible within 30-45 days pre-event)
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms • What’s the cut-off date to reduce your room
block? (ex: 15-20% reduction possible within 30-45 days pre-event)
• Request a room audit so you get full credit for all attendees at hotel, including ones who booked outside the block.
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms • What’s the cut-off date to reduce your room
block? (ex: 15-20% reduction possible within 30-45 days pre-event)
• Request a room audit so you get full credit for all attendees at hotel, including ones who booked outside the block.
• Negotiate comp room credit (ex: 1 per 40) to be applied to master account
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Function space • What unusual venues/amenities exist on
property (or in the city)?
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space • What unusual venues/amenities exist on
property (or in the city)
• Can there be business-friendly amenities comped for the registration desk? (e.g., outlets, phone line)
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space • What unusual venues/amenities exist on
property (or in the city)
• Can there be business-friendly amenities comped for the registration desk? (e.g., outlets, phone line)
• Does the property have any soft goods they have on hand that can be used to augment decor?
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space • What unusual venues/amenities exist on
property (or in the city)
• Can there be business-friendly amenities comped for the registration desk? (e.g., outlets, phone line)
• Does the property have any soft goods they have on hand that can be used to augment decor?
• What can the CVB provide?
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Food & beverage • Base attrition on lost profit not lost revenue
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage - attrition• Base attrition on lost profit not lost revenue
• Put in writing (addendum) - no service fees or sales tax will be charged on F&B attrition
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage - attrition• Base attrition on lost profit not lost revenue
• Put in writing (addendum) - no service fees or sales tax will be charged on F&B attrition
• If you’re in danger of not making your numbers, can you upgrade menus & service?
http
s://w
ww.
flickr.
com
/pho
tos/
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Food & beverage - attrition• Base attrition on lost profit not lost revenue
• Put in writing (addendum) - no service fees or sales tax will be charged on F&B attrition
• If you’re in danger of not making your numbers, can you upgrade menus & service?
• F&B maximum: Can you unlock additional concessions by hitting a certain number?
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Group discussion: Addenda What clauses are you adding to your contracts? Do you have special addendum already prepared?
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Addendum
• Do you already have set addenda in place?
• What clauses are you using?
#toursanmarcos @PYMLive @JeffRasco
Addendum - Tips from PYM LIVE San Francisco, Chicago & Austin
• Force majeure
• Sleeping room attrition (based on lost profit)
• F&B attrition (based on lost profit)
• Sustainability requirements and reporting
• F&B maximum unlocking additional concessions
• Reporting requirements (data, energy, attendee spend)
• Cancellation/rebooking clause
• Noise/enjoyment clause
• Construction/renovation
• Concessions (include top 3 must haves)
• Prevent competitors from booking overlapping event dates
• Change of ownership/flag
Need more tips & ideas?
“Contract Negotiation: Prepared & Fair are Effective in Any Market”: ez.com/prepared “F&B Negotiation Strategies,” this presentation and more: slideshare.net/KristiCaseySandersContract Negotiation articles and other meeting planning advice: PlanYourMeetings.com Upcoming webinars: ez.com/pymhangout Claim your free membership to PYM: ez.com/pymsubscribe
Plan well & prosper, friends! Stay in touch! @PYMLive @JeffRasco #yaypym
#toursanmarcos @PYMLive @JeffRasco
