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3/12/2010 5:03:58 PM
ivodiladim
Posts: 3
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The industry is likely to implode through self interest and arrogance of a few.
We have known and experienced for many years the attitude that event management services are administration or secretarial in nature. We know that there is a lack of understanding in the corporate world of the amount of effort that goes into the delivery of an event. We know that the internal client factors including procurement, return on investment, productivity and cost cuts result in bringing events management in house or reducing the overall event budget.
We can appreciate the corporate decisions on cutting expenditure to improve productivity with a focus on the bottom line.
There are so many players in the market that dilute the value of event management companies. Single operators with limited experience offer secretarial rates and survive on one or two clients or a single event. With overheads low, no aspiration to grow, their fees are competitive because they only seek ‘tuck-shop money’.
Advertising agencies offer event management as an add on, tend to do it poorly because they are creative in focus and tend to use inexperienced staff to run the events for clients. They do however rely on 25%+ margins. The events being an add-on are not seen to be major revenue earners for the business.
What we now experience on a day to day basis when pitching for business is the undercutting by our industry ‘colleagues’, particularly the bigger established companies and those that are answerable to overseas parents.
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