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Contract Negotiations: Beyond the Basics

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Kristi Casey Sanders, CMP, CMM, DES, HMCC
Kristi Casey Sanders, CMP, CMM, DES, HMCC

Whether you're in a buyer or a seller's market, relationships are key to successful contract negotiations. So is knowing what you must have, would like to have and can live without. This presentation focuses on what meeting and event planners can leverage with hotels and venues and includes feedback from PYM LIVE attendees from San Francisco, Chicago and Austin about what they're asking for, getting and using addenda for across the country. Presented on June 6, 2014 at the San Marcos CVB Client Appreciation event by @PYMLive and @JeffRasco. White papers of related content can be found at http://planyourmeetings.com search "contract negotiations."

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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 Strategies Joyce J. Ginsburg - JJG Meetings Christy Lamagna, CMP, CMM, CTSM - Strategic Meetings & Events Paula J. Rigling, CAE, CMP - Meeting Planning Professionals #toursanmarcos @PYMLive @JeffRasco
What will be covered in this presentation 1. Reminder: The power of relationships 2. Contract elements, what affects them & things to consider 3. Concessions: group discussion, sharing & tips 4. Addenda: group discussion, sharing & tips 5. 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.” http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
#toursanmarcos @PYMLive @JeffRasco Remember • If the answer is “no,” ask why. See if there are any alternatives. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
#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 https://www.flickr.com/photos/joelanman/366190064
#toursanmarcos @PYMLive @JeffRasco Dates • Time of year (what else is happening) https://www.flickr.com/photos/joelanman/366190064
#toursanmarcos @PYMLive @JeffRasco Dates • Time of year (what else is happening) • Off-season/in-season https://www.flickr.com/photos/joelanman/366190064
#toursanmarcos @PYMLive @JeffRasco Dates • Time of year (what else is happening) • Off-season/in-season • Sales quotas (weak dates) https://www.flickr.com/photos/joelanman/366190064
#toursanmarcos @PYMLive @JeffRasco Guest rooms https://www.flickr.com/photos/wwarby/9638499309
#toursanmarcos @PYMLive @JeffRasco Guest rooms - don’t forget • Shoulder dates (pre- and post-event needs) https://www.flickr.com/photos/wwarby/9638499309
#toursanmarcos @PYMLive @JeffRasco Guest rooms - don’t forget • Shoulder dates (pre- and post-event needs) • Number of each type of room https://www.flickr.com/photos/wwarby/9638499309
#toursanmarcos @PYMLive @JeffRasco Guest rooms - don’t forget • Shoulder dates (pre- and post-event needs) • Number of each type of room • General attendees https://www.flickr.com/photos/wwarby/9638499309
#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 https://www.flickr.com/photos/wwarby/9638499309
#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 https://www.flickr.com/photos/wwarby/9638499309
#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 https://www.flickr.com/photos/wwarby/9638499309
#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 https://www.flickr.com/photos/wwarby/9638499309
#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 https://www.flickr.com/photos/wwarby/9638499309
#toursanmarcos @PYMLive @JeffRasco Guest rooms - rates • Who’s paying for the rooms? https://www.flickr.com/photos/wwarby/9638499309
#toursanmarcos @PYMLive @JeffRasco Guest rooms - rates • Who’s paying for the rooms? • If attendees pay: What rate do you need to generate attendance? https://www.flickr.com/photos/wwarby/9638499309
#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? https://www.flickr.com/photos/wwarby/9638499309
#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? https://www.flickr.com/photos/wwarby/9638499309
#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? https://www.flickr.com/photos/wwarby/9638499309
#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? https://www.flickr.com/photos/wwarby/9638499309
#toursanmarcos @PYMLive @JeffRasco Guest rooms - relationships • Maintain an excellent relationship with your Convention Sales Manager because … https://www.flickr.com/photos/wwarby/9638499309
#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? ! https://www.flickr.com/photos/wwarby/9638499309
#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? https://www.flickr.com/photos/wwarby/9638499309
#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? https://www.flickr.com/photos/wwarby/9638499309
#toursanmarcos @PYMLive @JeffRasco Function space • Actual meeting space needed QueridianSolutionsqueridian.com
#toursanmarcos @PYMLive @JeffRasco Function space • Actual meeting space needed • Take into account: QueridianSolutionsqueridian.com
#toursanmarcos @PYMLive @JeffRasco Function space • Actual meeting space needed • Take into account: • Set-up time / rehearsal time QueridianSolutionsqueridian.com
#toursanmarcos @PYMLive @JeffRasco Function space • Actual meeting space needed • Take into account: • Set-up time / rehearsal time • Type of set-up needed QueridianSolutionsqueridian.com
#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 QueridianSolutionsqueridian.com
#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 QueridianSolutionsqueridian.com
#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 QueridianSolutionsqueridian.com
#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 QueridianSolutionsqueridian.com
#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/walkways QueridianSolutionsqueridian.com
#toursanmarcos @PYMLive @JeffRasco Food & beverage https://www.flickr.com/photos/matchfitskills/8891100231
#toursanmarcos @PYMLive @JeffRasco Food & beverage • What’s the hotel’s minimum requirement for those dates? https://www.flickr.com/photos/matchfitskills/8891100231
#toursanmarcos @PYMLive @JeffRasco Food & beverage • What’s the hotel’s minimum requirement for those dates? • What type of functions are required? https://www.flickr.com/photos/matchfitskills/8891100231
#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? https://www.flickr.com/photos/matchfitskills/8891100231
#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? https://www.flickr.com/photos/matchfitskills/8891100231
#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? https://www.flickr.com/photos/matchfitskills/8891100231
#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) https://www.flickr.com/photos/wwarby/9638499309
#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. https://www.flickr.com/photos/wwarby/9638499309
#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 https://www.flickr.com/photos/wwarby/9638499309
#toursanmarcos @PYMLive @JeffRasco Function space • What unusual venues/amenities exist on property (or in the city)? QueridianSolutionsqueridian.com
#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) QueridianSolutionsqueridian.com
#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? QueridianSolutionsqueridian.com
#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? QueridianSolutionsqueridian.com
#toursanmarcos @PYMLive @JeffRasco Food & beverage • Base attrition on lost profit not lost revenue https://www.flickr.com/photos/matchfitskills/8891100231
#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 https://www.flickr.com/photos/matchfitskills/8891100231
#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? https://www.flickr.com/photos/matchfitskills/8891100231
#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? • F&B maximum: Can you unlock additional concessions by hitting a certain number? https://www.flickr.com/photos/matchfitskills/8891100231
#toursanmarcos @PYMLive @JeffRasco Group discussion: Addenda What clauses are you adding to your contracts? Do you have special addendum already prepared?
#toursanmarcos @PYMLive @JeffRasco 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/KristiCaseySanders Contract 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

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Contract Negotiations: Beyond the Basics

  • 1. #toursanmarcos @PYMLive @JeffRasco Contract Negotiations: Beyond the Basics Kristi Casey Sanders @PYMLive Jeff Rasco @JeffRasco #toursanmarcos https://www.flickr.com/photos/stevensnodgrass/5480863464
  • 2. Special thanks to these PYM LIVE speakers Melissa Washington - SmartNet Strategies Joyce J. Ginsburg - JJG Meetings Christy Lamagna, CMP, CMM, CTSM - Strategic Meetings & Events Paula J. Rigling, CAE, CMP - Meeting Planning Professionals #toursanmarcos @PYMLive @JeffRasco
  • 3. What will be covered in this presentation 1. Reminder: The power of relationships 2. Contract elements, what affects them & things to consider 3. Concessions: group discussion, sharing & tips 4. Addenda: group discussion, sharing & tips 5. Additional resources #toursanmarcos @PYMLive @JeffRasco
  • 4. Disclaimer: I’m not a lawyer This is for educational purposes only. :) #toursanmarcos @PYMLive @JeffRasco
  • 5. #toursanmarcos @PYMLive @JeffRasco Remember • The person on the other side is a person, not an “opponent.” http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 6. #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. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 7. #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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 8. #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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 9. #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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 10. #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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 11. #toursanmarcos @PYMLive @JeffRasco Remember • If the answer is “no,” ask why. See if there are any alternatives. http://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 12. #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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 13. #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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 14. #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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 15. #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://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpghttp://farm8.staticflickr.com/7001/6674198667_171392d865_b.jpg
  • 18. #toursanmarcos @PYMLive @JeffRasco Contract basics • Dates • Number of guest rooms needed
  • 19. #toursanmarcos @PYMLive @JeffRasco Contract basics • Dates • Number of guest rooms needed • Function space requirements
  • 20. #toursanmarcos @PYMLive @JeffRasco Contract basics • Dates • Number of guest rooms needed • Function space requirements • Food & beverage needs
  • 21. #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!
  • 22. #toursanmarcos @PYMLive @JeffRasco Addenda may be necessary for areas not addressed. Work with legal and procurement to create set addendum.
  • 24. #toursanmarcos @PYMLive @JeffRasco Dates • Time of year (what else is happening) https://www.flickr.com/photos/joelanman/366190064
  • 25. #toursanmarcos @PYMLive @JeffRasco Dates • Time of year (what else is happening) • Off-season/in-season https://www.flickr.com/photos/joelanman/366190064
  • 26. #toursanmarcos @PYMLive @JeffRasco Dates • Time of year (what else is happening) • Off-season/in-season • Sales quotas (weak dates) https://www.flickr.com/photos/joelanman/366190064
  • 27. #toursanmarcos @PYMLive @JeffRasco Guest rooms https://www.flickr.com/photos/wwarby/9638499309
  • 28. #toursanmarcos @PYMLive @JeffRasco Guest rooms - don’t forget • Shoulder dates (pre- and post-event needs) https://www.flickr.com/photos/wwarby/9638499309
  • 29. #toursanmarcos @PYMLive @JeffRasco Guest rooms - don’t forget • Shoulder dates (pre- and post-event needs) • Number of each type of room https://www.flickr.com/photos/wwarby/9638499309
  • 30. #toursanmarcos @PYMLive @JeffRasco Guest rooms - don’t forget • Shoulder dates (pre- and post-event needs) • Number of each type of room • General attendees https://www.flickr.com/photos/wwarby/9638499309
  • 31. #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 https://www.flickr.com/photos/wwarby/9638499309
  • 32. #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 https://www.flickr.com/photos/wwarby/9638499309
  • 33. #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 https://www.flickr.com/photos/wwarby/9638499309
  • 34. #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 https://www.flickr.com/photos/wwarby/9638499309
  • 35. #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 https://www.flickr.com/photos/wwarby/9638499309
  • 36. #toursanmarcos @PYMLive @JeffRasco Guest rooms - rates • Who’s paying for the rooms? https://www.flickr.com/photos/wwarby/9638499309
  • 37. #toursanmarcos @PYMLive @JeffRasco Guest rooms - rates • Who’s paying for the rooms? • If attendees pay: What rate do you need to generate attendance? https://www.flickr.com/photos/wwarby/9638499309
  • 38. #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? https://www.flickr.com/photos/wwarby/9638499309
  • 39. #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? https://www.flickr.com/photos/wwarby/9638499309
  • 40. #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? https://www.flickr.com/photos/wwarby/9638499309
  • 41. #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? https://www.flickr.com/photos/wwarby/9638499309
  • 42. #toursanmarcos @PYMLive @JeffRasco Guest rooms - relationships • Maintain an excellent relationship with your Convention Sales Manager because … https://www.flickr.com/photos/wwarby/9638499309
  • 43. #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? ! https://www.flickr.com/photos/wwarby/9638499309
  • 44. #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? https://www.flickr.com/photos/wwarby/9638499309
  • 45. #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? https://www.flickr.com/photos/wwarby/9638499309
  • 46. #toursanmarcos @PYMLive @JeffRasco Function space • Actual meeting space needed QueridianSolutionsqueridian.com
  • 47. #toursanmarcos @PYMLive @JeffRasco Function space • Actual meeting space needed • Take into account: QueridianSolutionsqueridian.com
  • 48. #toursanmarcos @PYMLive @JeffRasco Function space • Actual meeting space needed • Take into account: • Set-up time / rehearsal time QueridianSolutionsqueridian.com
  • 49. #toursanmarcos @PYMLive @JeffRasco Function space • Actual meeting space needed • Take into account: • Set-up time / rehearsal time • Type of set-up needed QueridianSolutionsqueridian.com
  • 50. #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 QueridianSolutionsqueridian.com
  • 51. #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 QueridianSolutionsqueridian.com
  • 52. #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 QueridianSolutionsqueridian.com
  • 53. #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 QueridianSolutionsqueridian.com
  • 54. #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/walkways QueridianSolutionsqueridian.com
  • 55. #toursanmarcos @PYMLive @JeffRasco Food & beverage https://www.flickr.com/photos/matchfitskills/8891100231
  • 56. #toursanmarcos @PYMLive @JeffRasco Food & beverage • What’s the hotel’s minimum requirement for those dates? https://www.flickr.com/photos/matchfitskills/8891100231
  • 57. #toursanmarcos @PYMLive @JeffRasco Food & beverage • What’s the hotel’s minimum requirement for those dates? • What type of functions are required? https://www.flickr.com/photos/matchfitskills/8891100231
  • 58. #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? https://www.flickr.com/photos/matchfitskills/8891100231
  • 59. #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? https://www.flickr.com/photos/matchfitskills/8891100231
  • 60. #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? https://www.flickr.com/photos/matchfitskills/8891100231
  • 61. #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?
  • 62. #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?
  • 63. #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
  • 64. #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) https://www.flickr.com/photos/wwarby/9638499309
  • 65. #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. https://www.flickr.com/photos/wwarby/9638499309
  • 66. #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 https://www.flickr.com/photos/wwarby/9638499309
  • 67. #toursanmarcos @PYMLive @JeffRasco Function space • What unusual venues/amenities exist on property (or in the city)? QueridianSolutionsqueridian.com
  • 68. #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) QueridianSolutionsqueridian.com
  • 69. #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? QueridianSolutionsqueridian.com
  • 70. #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? QueridianSolutionsqueridian.com
  • 71. #toursanmarcos @PYMLive @JeffRasco Food & beverage • Base attrition on lost profit not lost revenue https://www.flickr.com/photos/matchfitskills/8891100231
  • 72. #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 https://www.flickr.com/photos/matchfitskills/8891100231
  • 73. #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? https://www.flickr.com/photos/matchfitskills/8891100231
  • 74. #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? • F&B maximum: Can you unlock additional concessions by hitting a certain number? https://www.flickr.com/photos/matchfitskills/8891100231
  • 75. #toursanmarcos @PYMLive @JeffRasco Group discussion: Addenda What clauses are you adding to your contracts? Do you have special addendum already prepared?
  • 76. #toursanmarcos @PYMLive @JeffRasco Addendum • Do you already have set addenda in place? • What clauses are you using?
  • 77. #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
  • 78. 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/KristiCaseySanders Contract 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