Especially in challenging economic times, people seriously
consider how much things cost and what the price is. When I was the
Chief Operating Officer of a natural products manufacturer years ago, I
remember that our price point was a serious consideration, in order to
best position our products optimally in relation to others. However, value must be considered alongside quality and effectiveness! In real estate, homeowners often ask about the commission, but a quality, confident real estate professional, will explain the reason behind the fees, and the value he brings to the table!
However, while pricing and costs are important factors, when it comes to conferences and conventions, a far more important factor is almost always perceived value. In my three decades of hotel negotiations, event planning, and conference and convention planning and operations, I have witnessed repeatedly, situations where organizations over-emphasized only the price that participants would pay. In doing so, they often neglected creating a program and agenda that would attract attendees. Sometimes even more importantly, these organizations did not sufficiently emphasize the attendee's conference experience, and when that attendee went "back home," rather than being the organization's best ambassador, he reported a less than stellar experience.
The almost laughable, if it were not so incredibly short-sighted, part of this is that the amount of "cost savings" that these organizers implemented, had little impact on attracting significantly more attendance. However, at the same time, this reduction created financial risk for the organization and an inability to provide a superior attendee experience.
Organizers must recognize that a small price decrease in the fee for attending a conference often has little real impact on attendance. If it works at all, it only works in local events, where there are few expenses incurred by attendees besides the registration fee. However, many conferences require travel and hotel costs, and those costs often "dwarf" the registration fees.
In addition, if an organization is going to lower its registration fee, by how much will they reduce it? How much is a significant enough reduction to encourage additional attendance? What will be the overall impact on what conference organizers can do, when revenues are reduced?
I have heard numerous conference and convention organizers state that the reduced revenues will be offset by increased attendance. However, what these organizers often under-estimate is the true cost to the conference per attendee. If it takes more attendees to generate the same revenue, and registration fees are reduced by, for example ten percent, how much will attendance have to go up to offset the drop in revenue combined by the true cost per attendee? In many cases, a ten percent registration fee reduction will require close to a twenty percent increase in attendance and registrations.
Unfortunately, like many things done by many organizations, their conferences are often run by well-meaning individuals, who are, nevertheless, less than professional conference and convention coordinators. Organizations must analyze both the short term and longer term ramifications of addressing solely the registration fee issue, without, at the same time, analyzing the perceived value aspect. It is essential that organizers fully understand all aspects involved, including, especially, understanding their niche or target market.
In nearly everything we do and perform, price is a consideration, but rarely should it be the only one. If a real estate professional is unable to defend and articulate clearly, the value of his service, and negotiate for it effectively, how effective will he be, when it comes to negotiating the best terms (including price), from a potential buyer!
If you buy a product solely based on price, don't complain if it provides a lower user experience. Balance price, with value, effectiveness, needs and priotities.
However, while pricing and costs are important factors, when it comes to conferences and conventions, a far more important factor is almost always perceived value. In my three decades of hotel negotiations, event planning, and conference and convention planning and operations, I have witnessed repeatedly, situations where organizations over-emphasized only the price that participants would pay. In doing so, they often neglected creating a program and agenda that would attract attendees. Sometimes even more importantly, these organizations did not sufficiently emphasize the attendee's conference experience, and when that attendee went "back home," rather than being the organization's best ambassador, he reported a less than stellar experience.
The almost laughable, if it were not so incredibly short-sighted, part of this is that the amount of "cost savings" that these organizers implemented, had little impact on attracting significantly more attendance. However, at the same time, this reduction created financial risk for the organization and an inability to provide a superior attendee experience.
Organizers must recognize that a small price decrease in the fee for attending a conference often has little real impact on attendance. If it works at all, it only works in local events, where there are few expenses incurred by attendees besides the registration fee. However, many conferences require travel and hotel costs, and those costs often "dwarf" the registration fees.
In addition, if an organization is going to lower its registration fee, by how much will they reduce it? How much is a significant enough reduction to encourage additional attendance? What will be the overall impact on what conference organizers can do, when revenues are reduced?
I have heard numerous conference and convention organizers state that the reduced revenues will be offset by increased attendance. However, what these organizers often under-estimate is the true cost to the conference per attendee. If it takes more attendees to generate the same revenue, and registration fees are reduced by, for example ten percent, how much will attendance have to go up to offset the drop in revenue combined by the true cost per attendee? In many cases, a ten percent registration fee reduction will require close to a twenty percent increase in attendance and registrations.
Unfortunately, like many things done by many organizations, their conferences are often run by well-meaning individuals, who are, nevertheless, less than professional conference and convention coordinators. Organizations must analyze both the short term and longer term ramifications of addressing solely the registration fee issue, without, at the same time, analyzing the perceived value aspect. It is essential that organizers fully understand all aspects involved, including, especially, understanding their niche or target market.
In nearly everything we do and perform, price is a consideration, but rarely should it be the only one. If a real estate professional is unable to defend and articulate clearly, the value of his service, and negotiate for it effectively, how effective will he be, when it comes to negotiating the best terms (including price), from a potential buyer!
If you buy a product solely based on price, don't complain if it provides a lower user experience. Balance price, with value, effectiveness, needs and priotities.
No comments:
Post a Comment