Reliable. Consistent. The defining aspects of these attributes can relieve stress, give strength, and provide harmony. Subtract these qualities from something or someone, and life suddenly gets a lot more difficult. Take something as inconsequential as your favorite restaurant and imagine the food and service to be completely inconsistent. It’s incredibly frustrating. Deduct reliability away from a babysitters repertoire of merits and things can take a precipitous (scary!) decline. When you can count on solid reliability and consistency from others, it can change everything.
Before you scroll down to get to the meat, it’s important to realize that before you can jump ahead to the more lucrative things in life (like those multi-deals mentioned in the title), you have to realize that it can take time to establish your credibility. Business partners need to know (often times through previous experience) that you can get the job done. Reliably. Consistently. And done well. Once you’ve established those qualities and have been able to communicate those effectively, you can reap the benefits of those multi-type contracts. Now you may scroll…
The Meat (Err…Benefits)
There are many benefits that come with signing multi-year or multi-show contracts. They bring stability and influence to the table; welcome additions to a crowded and unpredictable arena. The three most obvious benefits include:
- Greater negotiating power when signing a multi-year/show contract.
- As your profile increases so does your leverage.
- Show Management rates are locked in.
So what do those benefits look like for you? Let’s break them down…
Greater Negotiating Power
Events take a lot of time and investment, from show concept to fruition, it takes an optimized strategy to get the job done. Negotiation is a large part of this rigorous process and if you are already familiar with the venue and area, you can use that to your negotiating advantage. Always look at your initial investment costs, including design creation of event, signage, and other start-up fees. These costs can be used to influence the negotiating outcome in your favor.
Signing multi-year/show contracts can yield some pretty spectacular savings, especially after the first show when you have already learned through trial and error where to tweak and cut costs. Specifically, you can save by:
- Having the cost laid out over the course of your multiple events, rather than just one. This saves on your initial upfront cost so you can invest in other ways.
- Receiving discounts or rebates from contractors for signing with them for several events or years.
- The cost of the show going down the second year (and so on) because of everything you had built up the previous year.
Increased Profile and Leverage
Before long-term agreements are established, past performance is always going to be evaluated. When you are known for your strong partnerships and for your past and current successes, you are more likely to sign multi-year/show contracts because your reliable reputation and profile will supersede others. Potential partners know that you understand their needs and can deliver the solutions; which makes you a valuable partner to do business with. And your value directly relates to the leverage you hold when it comes to dealing with business partners.
Locked in Rates
As a Show Manager, when you sign a multi-year/event contract, your rates are locked in. Hallelujah! This saves you the time and hassle of looking for new contracts and the worry of unforeseen price increases. If labor contract costs should increase over the years (possibly to make up for inflation), consider increasing exhibitors cost by 5% to avoid it affecting your overall show cost and bottom line.
No Room For Fear
Entering into long-term contracts for the first time can produce some anxiety; so, take a deep breath, because the benefits will truly make your business life so much better. As long as you do your due diligence before you dive headfirst into what will, hopefully, be a sea of long-term contract offers, you have nothing to fear. If you don’t have any contracts currently sitting on your lap, take heart. With your track record of reliability and consistency, people are sure to start taking notice.