1. 2009 Budgeting that Makes Sense karen m. king, cmp, cmm principal meeting strategists, llc

2. Learning Objectives  How to develop a budget that is easily reviewed.  How to work with your budgets to make sound recommendations.  Budget management techniques  Budget based negotiations skills  How to reconcile to your budget forecast once your event is over.

3. What’s first - define Three simple questions:  Who – is the audience  Why – are you meeting  How – should this meeting look It is crucial to set your objective!

4. Objectives? Define the meeting objectives :  Helps you develop the program  Identify what is essential vs non-essential  Keeps you on track  Provides a reference point throughout the planning process  Provides you with the stated goal that you may need to remind your client of

5. Establish the Line items  Hotel  Guest rooms (including comp’s)  Meeting room rental  F&B estimate  Staff expenses  AV/Production  Misc equipment  Electrical  Travel  Speakers  Meeting management  Registration  Recreation  Spousal activity  Evening events  Entertainment  Print material/marketing  Give away items

6. Understand the basics Indirect costs ARE always there. Fixed Expenses are NOT dependant upon counts/attendance Variable Expenses ARE impacted by number of attendees

7. Fixed vs Variable Fixed  Supplies  Speakers  Entertainment  Staff time  A/V Variable  Brochures  Food & Beverage  Save-the dates  Transportation  Recreational events  Overnight rooms  Flower arrangements

8. Hotel fees Guest room rates:  Base rate - $199  Resort fee - $15  State tax – 5%  City taxes – 3%  Room tax – 2.3%  Final room rate is $236.04

9. Food & Beverage Load your cost  What is the gratuity – 12%  Service charge – 5%  Sales tax – 5% A bottle of water becomes $4.91 each!  $4.00 – posted cost  $0.48 – gratuity  $0.22 – taxable service charge  $0.21 – sales tax

10. Remember! You must estimate costs  Refer to history/documents from past  List all line items  Extend out all line items  Allow a cushion  Separate/analyze major line item decisions

11. What does it look like?

12. Roll up your loaded f & b

13. Working with the data Prioritize!  Identify essential vs non-essential spending  Identify areas for cost containment  Know the terms of your contracts  Attrition  F&B minimums  Meeting room rental  Minimize RISK

14. What’s next? Budget management techniques:  Re-evaluate the meeting to the established objectives  Eliminate the fluff  Scrupulous attention to cost  Question the spend  Evaluate attendance guidelines (corporate)  Be prepared to sacrifice short term goals in order to meet long term objectives

15. Break even Analysis If you are planning meeting with the objective of generating revenue utilize this formula: Registration fee = Fixed + Variable expenses # of attendees X = Fixed + Variable expenses # of attendees

16. Break even Analysis Break Even Units = Total Fixed Costs (# of attendees) Contribution Margin

17. Renegotiate? Today’s challenges:  Understand short term vs long term objective  Think outside of the box  Share information  Offer solutions  Minimize RISK  Become a strategic partner

18. Know the value Budget based negotiation…..  What is your piece of business worth  What is essential vs non-essential to your client  Make smart decisions

19. Billing strategies: Become knowledgeable with the facility requirements and pricing.  Deposits  Payment schedule Provide the facility with your accounting needs in advance.  Clearly identify authorized signers!  Identify sub-master accounts

20. Sub-master accounts Allow you to break up your charges into appropriate categories or buckets  Communicate the billing break down clearly and concisely to the property and your internal staff  Allows smoother reconciliation

21. After the meeting…. Reconciliation:  Review the invoices  On-site review charges daily  Review the master account at the conclusion of the event  Errors occur  Were instructions followed?  Reconcile to the budget  History!  Identify cost savings  Identify overspending