Businesses like yours continually seek opportunities to outsource many specialized services to 3rd parties, such as event planning companies, so that they don’t have to build out an internal team!
Take events for example – Depending on your organization’s marketing plan, you may have a mixture of internal and external events that vary in size, audience type, and duration. While a marketing manager or corporate event planner might handle a very large portion of the event workload, they’ll outsource quite a bit.
This can be because:
- Their schedule is too busy during specific times
- The event is large or critical and requires more hands
- A lot of experience and expertise is required
These event planning companies work hand in hand with a ‘liaison’ (in a sense) within your company. This can be a single person within your company or an entire team that’s responsible for your strategy and execution.
From a business and ROI perspective, there’s a number of benefits to outsourcing various event tasks or whole events – And why we’ll see the reliance on 3rd party event planning companies trend. Here’s what they are
Why Businesses Rely on Event Planning Companies
- Event Planning Companies are Flexible, Cost-Efficient, and Extremely Experienced
Event Planning Companies are Flexible, Cost-Efficient, and Extremely Experienced
1. Avoid Fixed Costs
Payroll is usually the biggest fixed expense a company has. Building out an internal events team has its pros, but unless you are expecting continual and predictable growth, it can be extremely difficult to justify more event staff, because just as we experienced in 2020 with the pandemic, your events can vanish within just weeks.
2. Ability to Leverage a Large Team
Event planning companies typically have access to a large skillset either internally or through a partner network. This immediately ups the potential for any of your events because they can draw on expertise in many different areas of event management, production, and marketing.
Trying to hire, plan, and manage the same event internally might require several different professionals to produce the same level of event, which isn’t practical for most businesses.
3. Easy to Find the Best Match
Companies go through stringent hiring processes (especially larger companies) because employees are not easy to let go if they don’t work out. When a business hires an employee, it is understood that this is a long term commitment.
Firing or laying off an employee requires justification and can still spell legal trouble if things don’t work out.
Which is one of the many appeals of hiring event planning companies – The work is contract-based, so if you don’t like the work that a company is performing for you, it is relatively easy to hire another.
4. Unparalleled Experience
Corporate event planners are experienced, no doubt. But the difference between your planner and an event planning company is that the planner isn’t only focused on planning and managing specific duties for an event. Their role is bigger than that.
Again, they are the liaison between your company’s marketing team and your target audience. They develop the strategy and schedule and work with 3rd parties to help with the execution.
Because of this, they likely don’t have nearly as much experience with aspects like building out event registration sites (Cvent, Bizzabo, Aventri, etc.), on-site registration software, maximizing results you get from incentive travel, and many more specific attributes.
5. Collect Hotel Commissions
Most folks in the event industry know by now that hotels fork over anywhere between 7%-10% of the total room block spends as a commission for booking at their property…which can be MASSIVE. The caveat is they only give the commissions to event planning companies! Your corporate event planner does not have access.
And get this, a few 3rd parties like J.Shay Event Solutions, give the commission back to our clients. Yep!
Does whether or not you use a 3rd party to book the room block determine the price you’ll pay per room? If anything, you’ll likely pay more without a 3rd party. Not necessarily because of negotiations, but because of the leverage and relationships that a 3rd party has with hotels.
So in addition to the savings you’ll see with your hotel, you can potentially also get a commission equivalent to 7-10% of the total spend sent back to you.
6. Leverage Relationships to get Discounts
Just like in the hotel example, event planning companies have relationships with all sorts of DMCs, suppliers, vendors and more. This is an ongoing business relationship that gets used over and over, and thus, discounts are available – Just like with any other industry.
Using outside help for vendor management can pay for itself with the potential discounts you’ll receive. Not to mention, you don’t have to do any of the actual work!
7. Less to Manage
A pretty straight-forward point here: let someone else do the heavy lifting for you! Let event planning companies help you focus on the strategic aspects of your job by managing the nitty-gritty, or technical elements for you.
This opens new doors for your role, enabling you to focus on maximizing marketing outcomes, and truly engaging with your business – Not getting bogged down sending out email invites, or managing attendee questions.
8. Regional Expertise
Sometimes you just want to hire someone with local knowledge, and probably a local presence! Other times, you simply don’t want to go down the site selection path of traveling to multiple properties for days at a time to determine what the pros and cons of each are.
Again, going back to the strategic portion of your job – It makes more sense for you to have someone report the facts/numbers to you while you make the big picture decision.
9. Peace of Mind
Last, but certainly not least, is peace of mind.
For many of your events, you might have zero qualms about handling it internally. Perhaps it’s a fairly straightforward get-together, not customer-facing, or small in nature; easy enough.
But for the events where ROI matters, such as a sales kickoff, large meetings, incentive travel, trade shows and more, hiring an event planning company might just provide you with the peace of mind your business needs.
But for many companies, they won’t see the true benefit of hiring professionals until they have a bad experience in trying to host a critical event themselves for the first time.
If you are looking to learn more about our event planning company, click here to quickly contact us!
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