What Does Your Management Fee Include?
As discussed in my previous blog about event planning fees, the worldwide trend is for reputable event companies to not receive any paybacks from any source other than the management fee charged.
It is critical that both the event company and the Client have a clear understanding of what is included and excluded in this management fee. Many clients complain after an event that the fee is excessive, and the reason for this complaint is because that they are not aware of what the fee includes.
Here is a summary of what can be and is usually included in a management fee that covers the management of:
The overall outcome of the event
Concept, theme and activations
Risk analysis and contingencies
Governance and regulatory compliance issues
Permits and licensing
Budgetary controls and financial reporting
Communication structures and processes
Health and safety issues
Transport and transfer arrangements
Venue and accommodation
Attendance at meetings
Conference and breakaways
AV and Audio requirements
Entertainment and production
RSVP and delegate communication
Power supply and contingencies
CRM and feedback
The list only grows, but the real challenge for event managers is to ask themselves how good they are at these responsibilities and if their staff is up to the challenge. You charge for it, you better be damned good at it!
Director of the Hiside Group
10 May 2018