Many meeting organizers claim they enjoy negotiating…but deep down it is not our favorite part of meeting planning. Why do we have a resistance to negotiating? I believe it is for one or all of the following reasons:
- Feeling that one party must win and the other must lose
- Feeling that one party is more knowledgeable than the other
- Not fully understanding all of the clauses in a contract
- Fear of putting the organization at risk
The contract negotiation portion of meeting planning is much more than just reserving the sleeping rooms and meeting space for your conference. Both parties must protect themselves from risk and financial liability, while ensuring a successful event. The contract needs to be in place to ensure that both parties live up to the promises made to the other party. It is also in place for the ‘unlikely’ event that something should happen.
Now that we understand our fears, let’s discuss how to better prepare for a positive negotiating experience:
- Do your homework in advance- both parties need to understand what they need versus what they want and what they would be willing to give up in return.
- Both parties need to have clearly defined objectives and be able to verbalize to the other party what is important to them.
- Both must be willing and able to prioritize their requirements.
- Everyone involved needs to understand that there will be give and take throughout the process.
- The agreement must cover the basic information:
- event dates, sleeping room block, suite needs, meeting space needs
- reservation method, payment method
- rates, additional fees
- history
- total value of the program
- concessions
- Both parties need to understand the clauses that protect their organization: cut-off date, attrition, cancellation, walk policy, food & beverage minimum, right to audit, rights of termination for cause, renovation/remodeling.
- Agree on a timeline and stick to it
- Who else will need to be involved in the process and how much time will they need?
- Determine your walkaway point
- Have a ‘Plan B’- if you have to walk away, will your second choice fulfill your needs or will you need to start over?
We believe there are over 60 points that can be negotiated in a contract. When you break it down to a manageable process, it can be enjoyable to negotiate contracts. I have been negotiating on both sides of our industry for over 25 years. In future articles, we will provide tips from the planner side and tips from the supplier side. Until then…happy negotiating!