Home' micenet eMag : micenet October November 2015 Contents As tertiary institutions continue to spit out new
event managers who have big dreams of
starting their own businesses, and as clients
show little loyalty with companies and people
they have used for running events in the past,
it appears as if there will continue to be a
scramble for new business. A consequence of
this is that some companies will reduce their
fees to get the business, with the hope that
any additional business that comes their way
will reduce any losses from the first gig.
Funktionality’s Tracy Wood says the
undercutting of event services has definitely
been a challenge her company has
“Being part of a booming industry, it was
always inevitable to see new players pop up
wanting their share of the lucrative market –
and yet, having been in the industry for over
25 years, and with Funktionality recently
celebrating its 15 year milestone, I have seen
my fair share of event companies come and
go. In the early days your options were few
and far between when it came to decent
furniture and high-end décor for events – the
marquee companies that did exist only had
very limited stock – hence why I created
Funktionality! Now, the abundance of event
companies is mind-blowing, many of which
are a husband and wife team working from
their home or storage unit, and who can do it
all for a lot less labour.
“Compounding the problem is the rise of globalisation – in such a consumer-driven world,
everything is becoming so much more accessible, and purchasing stock cheaply from overseas
can be done with the click of a button! For many, the lure of this can be all too enticing, and for
new start-ups so too is the idea of discounting to secure a client’s initial business.
“However, this alone won’t guarantee return business and can ultimately lead to the demise
of the start-up itself. In my experience, clients will grow to expect reduced rates moving forward,
especially if this was how you secured their business in the first place. And when you can’t
deliver, they will look elsewhere.”
Ms Wood said she expects undercutting to be a continuing trend, much to the detriment of
the events industry.
Verve Creative’s Rob Frank believes the business events industry has changed forever.
“An event manager needs to be far more than a good organiser with a little black book full of
contacts. In fact, I believe the title ‘event manager’ is no longer an adequate description of what
we do. Sure, we may have to book venues, negotiate on behalf of our clients, know about the
latest entertainment options and prepare a comprehensive run schedule. But that’s a ‘ticket to
entry’ to the business. And, increasingly, clients are taking these functions in-house.
“So where does that leave us? How do we use our skills and expertise to help our clients’
businesses grow in the face of this changing market?
“Our job is to work with our clients to create event campaign strategies. After all, as part of a
business strategy, the most important aspect of an event is the outcome: how has the audience
changed as a result of their experience? What will they do differently when they get back to the
office? And, importantly, how will they feel about the business? In order to deliver outcomes
from events, we need understand the answer to this fundamental question: ‘What do you want
the audience to know, feel and do in the days, weeks and months after the event?’
“That process starts way before the event and is certainly not over once the audience/
delegates/guests have left the venue – in fact, in many respects, that’s only the beginning.
“As event campaign strategists, we offer our clients the benefits of our skills as
communicators at both an emotional and an intellectual level. We have the potential to have a
huge impact on our clients’ businesses.
“Those in our industry who recognise events are more than logistics and entertainment and
have the skills to work with clients at this strategic level, are in a unique position to rise above
the downward spiral of cost cutting and the question of fee cutting becomes almost irrelevant.”
“...THE ABUNDANCE OF EVENT
COMPANIES IS MIND-BLOWING,
MANY OF WHICH ARE A HUSBAND
AND WIFE TEAM WORKING FROM
THEIR HOME OR STORAGE UNIT...”
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