Which is better? To use a venue finding company to help you find and book a venue, or to do it yourself? Will you pay more if you use a venue finding company? Our research shows that venue finding companies often have more negotiating power than individuals for a number of reasons:
Experience and Expertise:
Venue finding companies specialise in locating and booking event venues on behalf of their clients. They have a deep understanding of the industry, including market trends, available options, pricing structures, and the negotiation process. This expertise allows them to navigate negotiations more effectively than individuals who might not be familiar with the intricacies of the venue booking process.
Venue finding companies often have established relationships with various venues, suppliers, and service providers. These relationships can give them access to preferential rates, deals, and perks that might not be available to individuals. Venues are more likely to offer better terms to companies that bring them a consistent stream of business.
Volume and Consolidation:
Venue finding companies frequently handle bookings for multiple clients and events. This high volume of business enables them to negotiate bulk discounts and favourable terms that individuals would not be able to secure. This aggregated demand allows the companies to wield more negotiating power.
Venues want to maintain positive relationships with venue finding companies because these companies can drive repeat business and referrals. A good reputation can lead to better negotiating leverage as venues aim to keep these intermediaries satisfied and returning with future clients.
Time and Efficiency:
Negotiating and securing a venue can be a time-consuming process that requires research, communication, and follow-up. Venue finding companies can save individuals the hassle by handling these tasks on their behalf. The time and effort saved can be seen as a service that justifies their negotiating power.
Customisation and Special Requests:
Venue finding companies often work closely with venues to customise arrangements based on client preferences and event requirements. This level of personalisation can make venues more willing to offer favourable terms, knowing that the venue finding company will ensure a smooth and successful booking process.
Venues might perceive working with a reputable venue finding company as a lower risk compared to dealing with individual clients. These companies are expected to be well-versed in contracts, legalities, and event planning, reducing the potential for misunderstandings or disputes.
Access to Data and Insights:
Venue finding companies have access to data and insights about the market, including benchmark pricing, availability, and demand patterns. This information enables them to negotiate from a position of knowledge, ensuring that the terms they secure are competitive and reasonable.
Economies of Scale:
Venue finding companies often have dedicated staff, resources, and technology to efficiently manage the venue finding process. This operational efficiency allows them to allocate resources to negotiation and customer service, further enhancing their negotiating power.
A Free Service:
Most venue finding companies offer a totally free service to clients. They make their money through finders’ commission from the venues, which does not affect the cost to the client.
Venues might view venue finding companies as representatives of the client’s interests. This can lead to a more collaborative and business-oriented negotiation process, as the venues recognize that they are dealing with experienced professionals who understand the industry’s dynamics.
In summary, venue finding companies possess a combination of expertise, industry relationships, negotiation skills, and operational efficiency that grants them more negotiating power compared to individuals. They can leverage these advantages to secure better deals and terms for their clients.
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