Word of Mouth Events & Planning Intern
866-905-9002 ext. 114
So, you’ve done it. Drafted your sponsorship packages. Looked them over for the millionth time. Edited. Revised. Made yourself dizzy with the words.
Now it’s perfect and ready for distribution to prospective sponsors.
This is a good feeling when planning any event, large or small. You are ready to go business to business and convince them to jump on board. You’re confident, because you’re vision is so clear. But can you paint the picture for others?
One thing you’ll definitely have to justify is pricing. You establish price point based on everything you know about the event. Overhead fees, profit margins, etc. Some companies may not agree with your price points. Some may actually argue that the pricing is too high or impractical. So, what do you do? Cut the price to accommodate each company individually? Go back to the drawing board with your package prices?
As an event planner, you have to recognize that price is not the object. It’s all about the benefits. If a company is willing to pay $1,000, which seems more appealing: Package One which includes 15 ads, a vendor booth and a banner for $1,000? Or Package Two which include unlimited ads, a vendor booth and a banner for $1,500?
Most companies will go for Package Two. Although it is $500 more than they were willing to pay, they see the benefit in the unlimited ads.
Remember, when a company is questioning your sponsorship packages, vendor packages and ad rates, don’t assume you have to change around your pricing. It may come to that in the end. But you’re initial thought should be to figure out a way to enhance the benefits to provide more bang for the buck.