For as long as commerce and entrepreneurship existed, people would hold elaborate gatherings to celebrate partnerships, achievements, and new beginnings. This habit is alive and well in the 21st century, and people today tend to call it a corporate function or event. Another thing that hasn’t changed is that these events tend to burn a hole through the organiser’s pocket – functions for larger companies can easily hit five digits.
These celebrations are valuable to the company’s future, and they aren’t going anywhere anytime soon. Understanding where the money goes, however, will help you decide where the company might be able to cut the costs a bit.
What makes up the price tag?
While your accounting department would be happy to tell you the specifics after the event is over, that won’t help you plan for it. Basically, these factors will have the largest impact on the bottom line, and your decisions should revolve around them.
1. The type of event – Of course, different events will need vastly different things. An end of year party will cost differently from a new product launch or a team building event, for example. This determines the equipment you’ll need, the services you’ll ask from the venue, and how extravagant the entire affair will be.
2. Number of people – Quite obviously, larger events with more attendees will always cost more. On the bright side, these will also have a lower cost per head than a smaller event of an equivalent quality. It is simply more cost-efficient to serve larger groups of people, so it’s possible to get great discounts.
3. The venue – The upfront cost for renting the venue is often your biggest expense, though some places like The Fiddler offer packages that charge per head instead. These packages often include the cost for the venue, food, and everything else the company will need. That simplifies the process greatly, and allows you to make more accurate decisions.
Easy ways to cut costs
There are several things you can do. First of all, getting multiple quotes is crucial, and can serve as a bargaining point. Some venues may also be willing to waive some fees depending on how large the function is and how nicely you ask. Finally, and most important, don’t think that you have to stick with conventional options like hotels; those are the most expensive, and not necessarily the best.