EPMS- Negotiation

EPMS

Negotiation

It seems obvious but it is often forgotten - an event is a one-time occurrence. Every year the annual festival is different. Change is fundamental to event management. Change will mean entering into different business relationships for every event. The result is that negotiation skills are fundamental to event management. Negotiation does not mean tricky dealings - it means coming to a mutually satisfying business arrangement.

A large part of event negotiation concerns the resources used to create the event. They can be divided into:

Standard resources - the negotiation for standard resources is fairly straightforward as most of the constraints and parameters are already known. For example in hiring a venue there will be a standard contract. The event manager needs to know the contract terms and the history of the use of these resources at events.
Customised resources - these are specialist resources created for the specific event. There may not be a standard contract or process. In this case the negotiation has to be well researched with risk and contingencies thought out. An example of this is the harbour floats for the Sydney's New Year's Eve event.

As illustrated in the slide below, the major costs need to be identified and grouped. This may be by :

budget line elements e.g. all the sound (and if it comes from the one supplier this is probably the most sensible)
program elements( for a Festival with lots of stages, each staging area may be treated separately as a cost centre).

Note the similarity of this kind of division to the work breakdown structure (WBS). Once again the WBS is shown to be fundamental to the event project management process.

The affect of any changes in the cost/revenue areas needs to be ascertained. Will a movement by 10% of the cost of the sound make a major impact on the event? If the programs are sold to the performers ( programs being a cost centre) will it negatively effect the event in any way . E.g. Woodford Festival.
A major area for negotiation that has an enormous effect on the event is the cash flow. Cash can be coming in and the event still make a major loss due to the scheduling of payments.

These are some the constraints in negotiation.

The basis of negotiation - as in every area of event management - is skill and knowledge. Skill honed through experience and knowledge of what both parties have and want.

This is particularly applicable to customize resources. BILL_TIP : I have been in this business for 25 year and have seen event managers, promoters and entrepreneurs come and go. The ones that last and who are at ease with themselves are those that stick to the deal. They may drive a hard bargain - but they would never break an agreement.

This is one area that is about to explode in numbers due to the introduction of the new tax system

Contract knowledge is vital for event success.

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	The basis of negotiation - as in every area of event management - is skill and knowledge. Skill honed through experience and knowledge of what both parties have and want.
	This is particularly applicable to customize resources. BILL_TIP : I have been in this business for 25 year and have seen event managers, promoters and entrepreneurs come and go. The ones that last and who are at ease with themselves are those that stick to the deal. They may drive a hard bargain - but they would never break an agreement.
	This is one area that is about to explode in numbers due to the introduction of the new tax system

	Contract knowledge is vital for event success.