How to Deal with Shrinking Budgets and Rising Expectations

Event sales professionals face the dual challenge of accommodating shrinking budgets while meeting rising expectations. To navigate this issue effectively, it's crucial to implement strategies that prioritise transparency, adaptability, and flexibility in pricing. Hear from our experts, Nadja, our Meetings & Events Consultant, and Holly, the Groups and Event Sales Manager from The Hoxton, on what was discussed in our webinar:

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Be Transparent:

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Transparency is crucial in pricing. Clients appreciate honesty and upfront communication about costs from the outset. Being transparent about the total cost and setting clear expectations about pricing can build trust, prevent surprises, and foster long-term relationships. Addressing price objections early and demonstrating an understanding of clients' concerns can maintain customer interest and trust.

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“It’s firstly important to be transparent and upfront about pricing from the get-go, so there are no hidden additional fees. Tell them what they should expect from the price - being honest about the total cost will help clients make more informed decisions and avoid surprises.” - Nadja, Meetings & Events Consultant

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Be Realistic and Flexible: 

With clients expecting more for less, finding realistic pricing becomes crucial. Determine the total cost of planning the event, set profit goals, and review your annual budget. Pricing services too high could mean lower sales, but too low could erode profits. Flexibility in adapting to changing circumstances and creativity in finding cost-saving solutions without compromising quality are essential. Customised solutions can accommodate various budgets.

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“Swapping out dinner for canapes or unlimited drinks to a timed reception shows clients added value where venues can’t drop prices any more. For example, if a venue can’t reduce a bedroom rate any lower, offering complimentary upgrades can help the client see they’ve made savings differently. Look at future events the client is planning to see if there is any scope to agree to more events at a discounted rate.” - Nadja, Meetings & Events Consultant

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Introduce Pricing Strategies‍

Tailoring a range of pricing options to different client needs is vital for effectively addressing budget limitations. Bundle pricing, fixed hourly rates, flat fees, and dynamic pricing cater to diverse budgets and preferences. Framing charges based on clients' preferences and adjusting prices based on demand can maximise revenue while accommodating varying budgets.

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“You need to adjust prices based on demand, maximising revenue during peak seasons while attracting customers during quieter periods.” - Holly, The Hoxton

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Conclusion: Strategic Adaptation Is Key

Managing shrinking budgets and rising expectations demands a strategy centred on transparency, adaptability, and flexible pricing. By employing these strategies, you can build client trust, meet budgetary constraints, and optimise sales revenue.

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