¿Cuáles son algunas de las tarifas ocultas comunes o costos inesperados que pueden afectar el presupuesto de su evento?

Many event planners come to us, a boutique event production agency, wanting to know the "how", which is a fair ask. However, without the "why" and the "what", the "how" doesn't matter much in the big scheme of things. That being said, from a Production POV, you need to ask yourself: What is the concept and design for the event? What is the content? Slides, Presentations? Videos? Entertainment? Auction? How many presenters? Is there an MC, Auctioneer, Keynote speaker? Will they remain on the stage or move among the audience? Is the event taking place in a single space? Is the foyer or adjacent rooms used? Is the event needing to be streamed live or recorded? Who are your other partners and vendors? (Coordination, communication =key!)

Defining your goals and scope is crucial in creating an event budget. Consider: Purpose: Identify the primary reason for the event, which will drive budget allocations. Target audience: This impacts venue, marketing strategy, and entertainment. Size: Estimate the number of attendees, affecting venue and catering choices. Location: Decide if it's local or in a different city, influencing travel and accommodation costs. Event duration: A single-day or multi-day event will affect the budget differently. Quality expectations: High-quality events require more investment in venue, vendors, and marketing.

One of the worst pieces of advice to apply to event production is, "If you build it, they will come." Just because you're renting a 100 seat venue and pricing tickets at $30, doesn't mean you should budget for 100 patrons paying $30 each night. As confident as you may be about the quality of your event, it's smarter to set a lower expectation for audience attendance so that you can avoid operating at an unexpected loss.

We're not all born mathematicians, accountants and lovers of spreadsheets. Seeking help, advice, support to uplevel your budgeting chops is not something to be embarrassed of, it's empowering. Just like in your personal life you don't want your money to run you, you want money to work for you, knowing how to estimate and track your expenses, balance your budget will help make your event budget work for you and not the other way around. And maybe that will ensure that you will have enough budget left for a high quality event production that will elevate your guest's experience.

To estimate income, consider ticket sales, sponsorships, merchandise sales, and donations. For expenses, think about the venue, equipment, catering, staff, marketing, and contingency plans. Start by researching and gathering quotes to get an accurate estimate of each expense. Remember to account for any unexpected costs that may arise.

Negotiation is key. Never take a vendor's asking price at face value. Especially if buying items in bulk, there is usually a deal to be made. You can also bargain for free upgrades, services, etc. There are also ways to get free/discounted items or services in exchange for promising promotion. Figure out how to pitch to your vendors in a way that makes you seem lucrative, and keeps you financially healthy.

To negotiate favorable terms with AV vendors it’s important to have an open and clear communication path to articulating your AV requirements, expectations, and budget constraints so that whomever you bring on to provide AV production support for your event, they understand your needs and can find mutually beneficial solutions within your budget. Another thing here is to prioritize your needs vs wants. Cultivating a relationship with an AV partner will always lead to loyalty discounts, preferred pricing, and additional perks for future events. Bring your AV partner into the conversation early on and trust that they can suggest cost-effective options that still meet your event's objectives without sacrificing quality.

To negotiate effectively with vendors and partners, research market rates, communicate your budget and expectations, build relationships, leverage competition, be flexible, and ask for added value. This approach can help you secure better deals and maximize the value of your event budget.

To track and monitor your budget, establish a clear system for recording income and expenses. Update your budget regularly to ensure accuracy, and review it frequently to identify areas where adjustments may be needed. This will help you stay on track and avoid overspending.

My good friend, Julius Solaris said once and I couldn't agree more. “Margins are tight. If you master budgeting, you will succeed.” In order to succeed you've to to monitor and track your AV budget for the success of your event. In order to do that, start by creating a detailed budget, that includes all AV-related expenses: AV equipment rental, labor costs, and any other AV-related expenses. Assign a dedicated person to monitor the budget and use some type of budgeting tool to make it easy. Keep and organize estimates and invoices so you can update the budget regularly which will help you stay on top of your finances and identify any unexpected costs or delays.

Make sure your templates that you're using for budgets do not have any bugs/ glitches in them. It's best to really understand how excel works or have an accountant build you out a spreadsheet. Also, make sure you meet with your accountant regularly to make sure the sheet is working properly. Also, make sure you know how to do manual budget management so you can notice any differences in your spreadsheet vs. your old school calculations. I've noticed in the past glitches in spreadsheets that were shared with me. Sometimes, those more Senior don't want to listen to you when you notice those discrepancies in the moment. Take time out to investigate.

The costs prior to and after the event can sneak up on you. You may need more of these things do to weather, larger than expected attendance, weekly changes in cost of fuels. Such as garbage removal, snow removal, rental charges for generators and the fuel/electricity bills, plumbing/electrical repairs or upgrades. Vandalism and theft costs.

An example of hidden costs can be additional labor for set up, event run and tear down. We plan for contingencies with additional labor, nothing is harder on event managers than being understaffed. Having an experienced team can reduce the cost.

Planning for contingencies and hidden fees is essential in event budgeting. Set aside a 10-20% reserve fund for unforeseen situations like weather issues or emergencies. To avoid unexpected charges, carefully review contracts, invoices, and ask questions to clarify any uncertainties. This approach will help you manage unexpected expenses and maintain a balanced budget.

One thing I saw on a project that my Senior Team Members let slip through the cracks - the variable cost of gas fuel for generators. The cost went up tremendously. Our Technical Manager flagged it before but somehow the EP & Producer didn't account for it in the budget and were surprised when the invoice went up tremendously. So I would say don't forget about those variable line items that are based on the actual onsite days.