idsa leadership training 2010 activity planning series ... · program budgets, event site...
TRANSCRIPT
IDSA Leadership Training 2010 Activity Planning Series Part II
Budgeting & Planning
Activity Series: What to Expect
• Part 1- Overview & Foundation: September 15th, 2010 COMPLETE!
A review of Connexx procedures and a concise look at how to define your activity
and what tools you will need to make it a success.
• Part 2- Budgeting & Planning: October 20th, 2010
A detailed look at the technical and financial side of activity planning.
• Part 3- Onsite & Wrap-Up: November 17th, 2010
Final steps involved in the execution of your activity and necessary follow up.
About the facilitator
Carrie Rice, CMP, Director of Conferences and Meetings at IDSA
Carrie Rice, CMP has over a decade of experience in the meeting, event and conference planning industry. As
Director of Conferences and Meetings for IDSA, Carrie manages staffing and budgets for an annual portfolio of 10
to 15 events, ranging in size from board and committee meetings to regional and international conferences.
Carrie has accumulated a diverse array of experience and expertise in strategic planning, creating and maintaining
program budgets, event site selection, hotel and vendor negotiations, site management, program development
and scheduling, food and beverage management, audio/visual needs and onsite event management.
With experience in a variety of industries, Carrie has planned and managed events both domestically and
internationally, working with a large cast of vendors, speakers, sponsors, and executives to produce first-class
events with a very high satisfaction rate. Prior to her position with IDSA, Carrie worked in meeting planning with
the Casualty Actuarial Society in Arlington, VA. She has also worked in conferences and meetings, event planning
and marketing with Commonwealth Financial in Massachusetts; Billy Casper Management in Vienna, VA; and the
Cultural Affairs and Protocol Unit of the City of Sydney, Australia.
Carrie attained Certified Meeting Professional certification in 2006. She holds a Bachelor of Arts degree from
American University, cum laude, and a Certificate in Event Management from The George Washington University.
Budgeting: Overview
Your Mission: Designing and producing events is an exciting business, but it is a business! Event
producers need management skills to oversee operations and the business of the event. This
includes managing finances, information, people and risk. It is the responsibility of the event
producer to control and direct the fiduciary polices and procedures as tightly as the creative ones.
Objectives …
• Calculate the break-even point and profit margin for your event
• Determine the basis for identifying fixed versus variable costs
• Identify the financial philosophy for an event, and how it plays out through the budgeting process
Additional Considerations:
• Case study with practical example
• Top ways to save on food and beverage
• Tips of the trade
Examine the potential budget
• Who will develop the budget?
• Is the budget sufficient for the project?
• Where are additional funds and resources in case of need?
Next…..decide which of the three examples below appropriately represents the financial philosophy of
your event by examining event financial goals.
• Do you need to make a profit?
Example: An annual event may be a major source of revenue for your chapter/section.
• Does your activity hope to break even?
Example: A workshop series aimed at training.
• Or, is the event hosted and not designed to make a profit or break even?
Example: An elegant dinner sponsored by a plastics company in order to influence potential
clients.
Income
Income can come form a variety of sources, such as in the form of cash or “in-kind” sponsorship
contributions.
Standard types of anticipated revenue:
• Registration fees
• Ticket sales
• Sponsorship contributions
• Exhibitor or booth rental fees
Types of income can actually be in the forms of cash, but may still be different from what we typically
think of when we’re considering actual revenue:
• Donations
• Grants and Contracts
• Merchandise sales
• Advertising revenue
Expenses
Expenses can be categorized in one of two ways: fixed or variable.
Fixed
A fixed expense (or fixed overhead) will remain the same regardless of how many guests you have
at your event.
Example: Cost of renting a tent for an outdoor event will remain the same and the audio-visual,
entertainment, venue rental, and electricity will all remain the same regardless of whether you
have 5 people or 50 people.
Variable
These expenses do change based on each person that attends.
Example: If five people attend your networking dinner, and your cost per plate is $60, the total
variable expense would be $300 for those five people. The cost for dinner increases to $3,000 if
50 people attend.
How registration fee is determined….
Developing a Break Even Point
The break-even point provides an analysis for you to determine how many attendees you will need to
have in attendance in order for the event to break even and how much of a budget you will need
to cover your expenses.
Total fixed costs + variable costs
Registration fee = -----------------------------------------------------
Number of attendees
Food & Beverage
• Most venues consider food and beverage as a significant revenue center.
• Often venues give free meeting space based on the amount of money spent for food
and beverage.
• Hotels will often require a certain amount be spent on food and beverage.
• Note that their required minimums often DO NOT include taxes and the service
charge which together can drive up the total price by over 30%. Budget for these
extras!
• Consider putting the buffet table outside the meeting room to limit attendees from
returning to the buffet once the meeting begins. If you do this, you may need signage
stating who the buffet is for to discourage those outside of your meeting from
consuming.
Breakfast
• Serve 1 item (bagel, muffin or pastry) per person for 75% to 90% of attendees
– Example: For 100 people, order 75 to 90 items (most groups experience at least
a 10% no-show factor for breakfast)
• Bagels and muffins are usually the most popular. Minimize pastries, unless they look
very appealing (i.e. prepared from scratch in-house).
• Order breakfast breads conservatively as it is usually simple to add more cold food if
needed.
• If you have left over pastries, ask to put out for the AM break or have them delivered
to your office or committee meeting.
Lunch & Dinner
• To get an accurate count of the number of attendees served, count the
number of main plates before lunch begins and subtract the number
remaining after the function. You will want to have a catering person present
to verify the number onsite.
• You will be required to pay for the amount you order.
• Venues will usually plan for 3-5% more than you order; check your contract.
If you order for 80 but 70 eat, you still have to pay for 80.
Coffee Breaks
• 1 gallon of coffee fills 21 6-oz cups, 16 8-oz cups or 10 12-oz cups. Find out
what the hotel provides. If possible use china rather than disposable cups
which hold more. Your coffee will last longer!
• Some venues will let you order half-gallons
• Order bottled water and soft drinks on consumption instead. If you do, be
sure to conduct an opening and closing inventory with the hotel.
• Place the breaks outside of meeting rooms. It slows consumption.
• You do not have to provide coffee and soda all day. Provide them for short
intervals throughout the day.
Other ways to save…..
• KNOW YOUR GROUP'S HISTORY. Closely analyze how many people attend your food functions and how much they eat and drink; that way you won't pay for meals and drinks that aren't being consumed.
• USE STAND-UP TABLES FOR COCKTAIL RECEPTIONS. That way, people are more likely to network and less likely to hang around and drink and eat all night.
• LINES ARE OK, TO A POINT. At cocktail receptions, don't be afraid of having medium-size lines at the bar. Long lines are a no-no, but lines that are five or six deep encourage networking and discourage over-indulging on cocktails.
Menu Planning Negotiation
• ASK THE CHEF- Meet with the chef or catering personnel to see if you can use the
same menu as another group that is meeting at your facility at the same time. Having
the chef prepare more of the same food in advance can result in cost savings. Also,
check with the chef for seasonal or regional specialties, which might be less
expensive.
• LOCK IN MENU PRICES- If the hotel will not provide a specific menu in advance, at
least agree that menu prices will not increase more than a fixed percentage per year.
• ORDER AS MUCH AS POSSIBLE “BY CONSUMPTION”- Uneaten food and drink
can be returned and not charged. This works well with soda and packaged foods,
such as potato chips, but also can be done with perishables.
continued…..
• USE SIT-DOWN MEALS- This can cut food preparation labor costs as much as 20
percent.
• SKIP THE DESSERT, SALAD, OR SOUP- Attendees won't miss the courses, and
dessert can be served at breaks.
• USE SMALLER PLATES
• PLACE EXPENSIVE FOOD ITEMS IN HARDER-TO-REACH PLACES ON THE
BANQUET TABLE
• AVOID SHRIMP, OYSTERS, AND OTHER DELICACIES
Alcohol Negotiation
• SKIP THE TOP SHELF- Use house-brand cocktails and wine instead of premium
brands.
• NEGOTIATE BARTENDER FEES- If you agree to a beverage minimum, negotiate to
eliminate the bartender fees if you meet the minimum.
• FIND A SPONSOR- A local winery or microbrewery might pick up your liquor costs.
• USE A CONTROLLED-POUR SYSTEM- Make sure that bartenders measure what
they pour. If you are being charged per drink, you may find a “liberal ice” policy and
weaker drinks. If you are being charged by the bottle, the mixed drinks might be too
strong.
• ASK THE VENUE FOR A DISCONTINUED WINE LABEL- These often cost less.
Contacts & Important Links
Contacts:
• Katie Fleger, Manager Member Relations- [email protected]
• Jill Richardson, Membership Coordinator- [email protected]
• Director of Conferences- TBD
• Julie Heard, Chapter VP- [email protected]
• Warren Ginn, Section VP- [email protected]
Links:
Connexx Manual: http://www.idsa.org/content/content1/connexx-manual-chapters-and-sections-april-08
Chapter/Section Training Presentation: http://www.idsa.org/content/content1/section-training-handout
SCARF: http://www.idsa.org/content/content1/scarf-section-chapter-activity-request-form
Post Event Summary: http://www.idsa.org/content/content1/connexx-post-event-summary-form
Alcohol Policy: http://www.idsa.org/content/content1/alcohol-policy
IDSA Bylaws: http://www.idsa.org/content/content1/idsa-bylaws
Story of Connexx: http://www.idsa.org/content/content1/story-connexx
Finance & Event Planning Sheets: http://www.idsa.org/content/panel/connexx-resources
Next Time
• Part 3- Onsite & Wrap-Up: November 17th, 2010
Final steps involved in the execution of your activity and necessary follow up.
QUESTIONS???