Upload
kristi-sanders
View
439
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Whether you're in a buyer or a seller's market, relationships are key to successful contract negotiations. So is knowing what you must have, would like to have and can live without. This presentation focuses on what meeting and event planners can leverage with hotels and venues and includes feedback from PYM LIVE attendees from San Francisco, Chicago and Austin about what they're asking for, getting and using addenda for across the country. Presented on June 6, 2014 at the San Marcos CVB Client Appreciation event by @PYMLive and @JeffRasco. White papers of related content can be found at http://planyourmeetings.com search "contract negotiations."
Citation preview
#toursanmarcos @PYMLive @JeffRasco
Contract Negotiations: Beyond the Basics
Kristi Casey Sanders @PYMLive Jeff Rasco @JeffRasco#toursanmarcos
https://www.flickr.com/photos/stevensnodgrass/5480863464
Special thanks to these PYM LIVE speakers
Melissa Washington - SmartNet StrategiesJoyce J. Ginsburg - JJG MeetingsChristy Lamagna, CMP, CMM, CTSM - Strategic Meetings & EventsPaula J. Rigling, CAE, CMP - Meeting Planning Professionals
#toursanmarcos @PYMLive @JeffRasco
What will be covered in this presentation
1. Reminder: The power of relationships2. Contract elements, what affects them & things to consider3. Concessions: group discussion, sharing & tips4. Addenda: group discussion, sharing & tips5. Additional resources
#toursanmarcos @PYMLive @JeffRasco
Disclaimer: I’m not a lawyer
This is for educational purposes only. :)
#toursanmarcos @PYMLive @JeffRasco
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
• Communicate what you value and why.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
• Communicate what you value and why.
• Don’t be afraid to ask questions.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
• Communicate what you value and why.
• Don’t be afraid to ask questions.
• Know what are your “must haves,” “would like to haves” and “can live withouts” and negotiate accordingly.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• The person on the other side is a person,
not an “opponent.”
• The goal for both of you is to book and create a successful meeting.
• Communicate what you value and why.
• Don’t be afraid to ask questions.
• Know what are your “must haves,” “would like to haves” and “can live withouts” and negotiate accordingly.
• Protect yourself and your group. Nothing “never happens.”
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
• This isn’t personal. It’s business.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
• This isn’t personal. It’s business.
• Work with your sales contact to find benefits for both sides.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
• This isn’t personal. It’s business.
• Work with your sales contact to find benefits for both sides.
• Have a back-up plan.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
Remember• If the answer is “no,” ask why. See if there
are any alternatives.
• This isn’t personal. It’s business.
• Work with your sales contact to find benefits for both sides.
• Have a back-up plan.
• Know that sometimes you have to walk away.
http
://fa
rm8.
stat
icflick
r.com
/700
1/66
7419
8667
_171
392d
865_
b.jp
g ht
tp://
farm
8.st
aticfl
ickr.c
om/7
001/
6674
1986
67_1
7139
2d86
5_b.
jpg
#toursanmarcos @PYMLive @JeffRasco
What goes into a contract?
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
• Number of guest rooms needed
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
• Number of guest rooms needed
• Function space requirements
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
• Number of guest rooms needed
• Function space requirements
• Food & beverage needs
#toursanmarcos @PYMLive @JeffRasco
Contract basics
• Dates
• Number of guest rooms needed
• Function space requirements
• Food & beverage needs
Each of these areas must be addressed before the contract is signed!
#toursanmarcos @PYMLive @JeffRasco
Addenda may be necessary for areas not addressed. Work with legal and procurement to create set addendum.
#toursanmarcos @PYMLive @JeffRasco
Dates
http
s://w
ww.
flickr.
com
/pho
tos/
joela
nman
/366
1900
64
#toursanmarcos @PYMLive @JeffRasco
Dates• Time of year (what else is happening)
http
s://w
ww.
flickr.
com
/pho
tos/
joela
nman
/366
1900
64
#toursanmarcos @PYMLive @JeffRasco
Dates• Time of year (what else is happening)
• Off-season/in-season
http
s://w
ww.
flickr.
com
/pho
tos/
joela
nman
/366
1900
64
#toursanmarcos @PYMLive @JeffRasco
Dates• Time of year (what else is happening)
• Off-season/in-season
• Sales quotas (weak dates)
http
s://w
ww.
flickr.
com
/pho
tos/
joela
nman
/366
1900
64
#toursanmarcos @PYMLive @JeffRasco
Guest rooms
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
• Suites for executives
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
• Suites for executives
• VIP guests
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
• Suites for executives
• VIP guests
• Speakers
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - don’t forget• Shoulder dates (pre- and post-event needs)
• Number of each type of room
• General attendees
• Staff rooms
• Suites for executives
• VIP guests
• Speakers
• Vendors, etc
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
• Will there be a special staff rate?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
• Will there be a special staff rate?
• What’s included in the resort fees? Are those amenities your attendees need?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
• Will there be a special staff rate?
• What’s included in the resort fees? Are those amenities your attendees need?
• Do you need to negotiate a commission to go back towards your association, personal payment (for independents) or client?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - rates• Who’s paying for the rooms?
• If attendees pay: What rate do you need to generate attendance?
• Will there be a special staff rate?
• What’s included in the resort fees? Are those amenities your attendees need?
• Do you need to negotiate a commission to go back towards your association, personal payment (for independents) or client?
• Do you need VIP upgrades? Airport transfers for attendees?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - relationships• Maintain an excellent relationship with your
Convention Sales Manager because …
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - relationships• Maintain an excellent relationship with your
Convention Sales Manager because …
• Can they sell the rooms you can’t fill?
!
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - relationships• Maintain an excellent relationship with your
Convention Sales Manager because …
• Can they sell the rooms you can’t fill?
• Do they need to bump a group?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms - relationships• Maintain an excellent relationship with your
Convention Sales Manager because …
• Can they sell the rooms you can’t fill?
• Do they need to bump a group?
• Can you make good another year?
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
• Risk management
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
• Risk management
• Back-up weather plans
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
• Risk management
• Back-up weather plans
• Attendee mobility
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space• Actual meeting space needed
• Take into account:
• Set-up time / rehearsal time
• Type of set-up needed
• Purpose of event
• Risk management
• Back-up weather plans
• Attendee mobility
• Outdoor lighting/walkwaysQ
uerid
ian S
olut
ions
que
ridian
.com
#toursanmarcos @PYMLive @JeffRasco
Food & beverage
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
• What type of functions are required?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
• What type of functions are required?
• What does your group like?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
• What type of functions are required?
• What does your group like?
• Can the chef prepare something for your budget?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage• What’s the hotel’s minimum requirement for
those dates?
• What type of functions are required?
• What does your group like?
• Can the chef prepare something for your budget?
• Can you use smaller cups / plates to save money?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Group discussion: Concessions What concessions are important to your group? What are you asking for and getting? What do you have to compromise on?
#toursanmarcos @PYMLive @JeffRasco
Time to share: Concessions
• What’s important to you and your group/company?
• What are you asking for and getting?
• What are you having to compromise on?
#toursanmarcos @PYMLive @JeffRasco
Concessions - Tips from PYM LIVE San Francisco, Chicago & Austin
• What’s important to you and your group/company?
• Free Wi-Fi in sleeping rooms and meeting space
• Discounted F&B
• Free parking
• Free water
• VIP amenities / free room drops
• A/V discounts
• No resort fees
• Free airport transfers
• Free staff meals
• Free staff rooms
• Load in/load out dates
• Waived shipping/receiving fee
• No meeting room rental fee
• Free business center
• No fee for bringing own projector, laptops, tech people, etc.
• Reduced vendor/hotel commission on A/V
• No corkage/reduced corkage fee for wine brought in
• Locked in F&B pricing for future events
#toursanmarcos @PYMLive @JeffRasco
Guest rooms • What’s the cut-off date to reduce your room
block? (ex: 15-20% reduction possible within 30-45 days pre-event)
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms • What’s the cut-off date to reduce your room
block? (ex: 15-20% reduction possible within 30-45 days pre-event)
• Request a room audit so you get full credit for all attendees at hotel, including ones who booked outside the block.
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Guest rooms • What’s the cut-off date to reduce your room
block? (ex: 15-20% reduction possible within 30-45 days pre-event)
• Request a room audit so you get full credit for all attendees at hotel, including ones who booked outside the block.
• Negotiate comp room credit (ex: 1 per 40) to be applied to master account
http
s://w
ww.
flickr.
com
/pho
tos/
ww
arby
/963
8499
309
#toursanmarcos @PYMLive @JeffRasco
Function space • What unusual venues/amenities exist on
property (or in the city)?
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space • What unusual venues/amenities exist on
property (or in the city)
• Can there be business-friendly amenities comped for the registration desk? (e.g., outlets, phone line)
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space • What unusual venues/amenities exist on
property (or in the city)
• Can there be business-friendly amenities comped for the registration desk? (e.g., outlets, phone line)
• Does the property have any soft goods they have on hand that can be used to augment decor?
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Function space • What unusual venues/amenities exist on
property (or in the city)
• Can there be business-friendly amenities comped for the registration desk? (e.g., outlets, phone line)
• Does the property have any soft goods they have on hand that can be used to augment decor?
• What can the CVB provide?
Que
ridian
Sol
utio
ns q
uerid
ian.c
om
#toursanmarcos @PYMLive @JeffRasco
Food & beverage • Base attrition on lost profit not lost revenue
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage - attrition• Base attrition on lost profit not lost revenue
• Put in writing (addendum) - no service fees or sales tax will be charged on F&B attrition
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage - attrition• Base attrition on lost profit not lost revenue
• Put in writing (addendum) - no service fees or sales tax will be charged on F&B attrition
• If you’re in danger of not making your numbers, can you upgrade menus & service?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Food & beverage - attrition• Base attrition on lost profit not lost revenue
• Put in writing (addendum) - no service fees or sales tax will be charged on F&B attrition
• If you’re in danger of not making your numbers, can you upgrade menus & service?
• F&B maximum: Can you unlock additional concessions by hitting a certain number?
http
s://w
ww.
flickr.
com
/pho
tos/
mat
chfit
skills
/889
1100
231
#toursanmarcos @PYMLive @JeffRasco
Group discussion: Addenda What clauses are you adding to your contracts? Do you have special addendum already prepared?
#toursanmarcos @PYMLive @JeffRasco
Addendum
• Do you already have set addenda in place?
• What clauses are you using?
#toursanmarcos @PYMLive @JeffRasco
Addendum - Tips from PYM LIVE San Francisco, Chicago & Austin
• Force majeure
• Sleeping room attrition (based on lost profit)
• F&B attrition (based on lost profit)
• Sustainability requirements and reporting
• F&B maximum unlocking additional concessions
• Reporting requirements (data, energy, attendee spend)
• Cancellation/rebooking clause
• Noise/enjoyment clause
• Construction/renovation
• Concessions (include top 3 must haves)
• Prevent competitors from booking overlapping event dates
• Change of ownership/flag
Need more tips & ideas?
“Contract Negotiation: Prepared & Fair are Effective in Any Market”: ez.com/prepared “F&B Negotiation Strategies,” this presentation and more: slideshare.net/KristiCaseySandersContract Negotiation articles and other meeting planning advice: PlanYourMeetings.com Upcoming webinars: ez.com/pymhangout Claim your free membership to PYM: ez.com/pymsubscribe
Plan well & prosper, friends! Stay in touch! @PYMLive @JeffRasco #yaypym
#toursanmarcos @PYMLive @JeffRasco