Since 1978 I have worked in literally hundreds of venues across Europe, the United Kingdom and, (most recently), in the United States. Over the last 28 years, or so, I have noticed a significant improvement in the range of audio visual facilities venues provide for their patrons. As the overall meetings and conventions industry has rapidly expanded venues have become increasingly more “user friendly”. Hotels, convention centers, meeting facilities and other venues are now either “custom built” and/or constantly upgraded with “state of the art facilities” keep pace with clients changing needs and expectations.
Also, of course, many venues either have dedicated audio visual staff or “in-house” audio visual vendors, who provide direct support services to clients. This means that most venues are technically. And operationally, capable of hosting practically any type of meeting, convention, exhibition, or other event.
Having said that, of course, there are two main venue selection issues that my clients mention on a regular basis. One is the perception that audio visual equipment rented from a venue is always more expensive than seems reasonable. The other is the apparent excessive charges levied for labor, (technicians and event support staff).
Generally speaking, venues that offer in-house audio visual facilities enter into fixed term contracts (3 or 5 years), with external vendors who deploy their own equipment and staff to work on events for the venues end-user clients. Venues and vendors then split the revenue from the provision of audio visual services, (sometimes by as much as 40%, 50% or 60% in favor of the venue). In order to make the arrangement viable, for both the venue and vendor, equipment rental charges are frequently “marked up” over and above local market rates.
End user clients are also sometimes contractually obligated to use in house facilities, when they book an event, which means they have limited options in terms of having to pay the vendor/venue rates.
As far as labor is concerned, many venues and internal vendors, base their rates on whatever the local technician’s unions charge per hour. In most major cities, hourly rates for union labor averages $45.00 - $50.00 per hour and increase depending on the particular technical specialist. Venues and their vendors, however, frequently utilize non-union technicians in their day to day operations, (average pay $15.00 to $20.00 per hour), but charge clients the union rate of $45.00 - $50.00 per hour. Weekends, Holidays or early AM/late PM work pushes these charges up, (frequently twice or three times higher). Again, venues and vendors spilt labor revenues “profits” by up to 50%
The good news, however, is that more and more clients are refusing to accept venue exclusivity conditions, or pay “AV Corkage” for using external audio visual services and labor. It is also becoming more common for clients to either purchase more of their own equipment, or to rent equipment and technical operators from specialist sub-rental companies, (who generally serve a wider open market area).
The significant cost savings obtained from paying open market rates for equipment and technical operatives are self evident.
Also, of course, many clients have long established relationships with production companies who serve the general presentation needs very well. When clients are forcibly “separated” from their regular audio visual service partner, in favor of an unknown in house vendor, (by a particular venue), it frequently results in technical difficulties during the event.
Larger, or more complicated events are frequently managed by audio visual production companies, or by independent event producers. These service providers are able to offer greater flexibility in equipment rental charges and labor rates, (as complete packages).
Whilst some cities, and individual venues, have legally binding contracts with technical and other unions, (and are obligated to pay the union rates), the quality of service received is still frequently higher than clients might find with in-house providers.
I generally recommend that any client who plans to host a meeting, seminar, exhibition or convention should either insist on using their established vendors and/or “shop around” for audio visual support services.
Obtaining two or three quotes from different external vendors allows for a direct price comparison with the venues internal service provider. Whilst clients may not necessarily choose the lowest pace bid, they can, at least, use their findings to negotiate a more competitive deal for their audio visual requirements with the venue.
Director AV offers a consultancy service for any client planning to host business meetings. We have contacts across the United States, in Europe and the United Kingdom. If we can help with obtaining competitive quotes for audio Visual support services, please contact us at any time!
Dorian J Blagg
Audio Visual Presentations Director.
4224 St. Paul Way,
Suite #103,
Concord, CA, 94518.
Tel: (925) 726-7391.
Fax: (484) 726-3805.
E-Mail: dorian.blagg@directorav.com
Website:
www.directorav.com
|
|
