Don’t Believe the Snow Job the Facilities Give You!

Back-end hidden fees


Mandatory usage of in-house AV

Charisma Productions Network

Have you ever put together an event or meeting and used a facility? Did you need AV for your event? Did the facility tell you that is was mandatory to use their in-house AV? Well, guess what? That’s a “snow job” the facilities use to make even more money from unknowing planners. Most facilities use private inhouse AV companies that have negotiated with the facility to provide service. What does this mean? Basically it means that the AV company provides an estimate of all the equipment that you request and labor needed to complete the task.

When your company sends the facility an RFP they have to make a profit on AV equipment and labor as well. In order for them to make their profit, an extra 40% - 60% is added to your cost on top of the equipment and labor rates. Let’s face it, they’re in business, like everybody else to make a profit.

In-house AV services charge you 40%-60% more than a production company. Why? Because they have contracted with facilities and they have to pay the facility to be there. So, for example, a power surge protector that you need in a conference room, can cost up as much as $50 per day compared to a using an outside AV production company which usually includes power strips and A/C cables at no charge. What a difference!

After making numerous calls in the past months and hearing companies say that the facility they are utilizing has told them that it is mandatory that they use their in-house AV, I found the need to inform planners that this is not true! You don’t need to utilize in-house AV. As a matter of fact, by doing so, you will have a MUCH higher AV bill than utilizing a production company. Not only will you get a much lower AV bill, but you will also get more personalized service.

Also, by utilizing an outside production company you get a project manager that only works on your event. Whereas using the in-house company, they are there for the whole facility and the response time is very slow. On average the response time for an in-house AV service is 7 minutes as compared to an outside production company, working only for your company, of 1.25 minutes.

When you give an RFP to a facility, they may come within your budget, but if you’re not careful and don’t read the fine print, you may get caught “holding the bag”. Every time you make a change, no matter how small, you will be charged extra. At the end of the event, when you get your final bill you’ll find surprise back-end service charges, local and city taxes, labor charges, that you weren’t expecting.

So the next time you begin planning and choosing your facility, make sure the facility can accommodate the number of your attendees and rooms needed for your meetings. Also be sure they can put this in writing and that they will not do double booking for the same meeting rooms in your allotted time frame, because, you must remember, any changes made, big or small, will be done at your cost.

One important question to ask is if they are a union or non-union facility. This can bring on even more charges because union facilities have higher labor rates.

Most importantly remember always send your RFP with your budget constraints out to bid. Get at least 3 bids, one being your facility, and see who can, not only, stay within the restraints of your budget, but can also provide you with the service that you would like to have. This is not going to cost you extra. Bids on RFP’s are at no charge to you.