Combating Inflation as an Event Planner in 2023
Many event planners were familiar with the headaches brought on by inflation, in 2022. The costs of food, beverage, labor, and other event staples rose along with the rest of life's necessities. But, by the end of 2022, December provided planners with a light at the end of the tunnel; we entered the 6th consecutive month of inflationary decline, landing at 6.5%.
While the forecast for declining inflation in 2023 has been promising, planners should hold off on any premature celebrations. According to Kiplinger’s 2023 Inflation Forecast, “Services price inflation is still strong. Rent increases picked up to a 7.6% yearly rate…[and] price increases for other services have not slowed down yet.” In other words, the events and services industry will need to maintain some prudence going into 2023, if they want to meet client budgets and put on an event to remember. So, as planners, how can we battle rising costs? Read on for 5 tips to help you get started.
1. Reimagine food and beverage
The cost of food and beverage services went through the roof in 2022—but that’s no cause for panic. We’ve learned that all it takes is careful planning to incorporate an F&B service that adheres to a tight budget and pleases attendees.
There are several small, but impactful ways to cut costs at your next event. Offering water stations with pitchers and glasses instead of bottles, or pre-poured glasses of wine instead of the choice for more expensive libations. Don't present bread; serve it on request. Or, consider adding extra cost to the event ticket and including a beverage voucher, among other options.
When it comes to managing F&B, 2023 might just be the year of thinking small. Yes—you read that right. Sit-down service is great but more affordable, mini-versions of traditional fare—like sliders, bruschetta, and other grab-and-go finger foods—will save you big.
2. Be flexible with booking dates
Booking a great venue at an affordable price isn't so different from booking a plane ticket. During peak seasons like holidays, airfare costs soar for services no different than what you get in the off-season. Similarly, if you're trying to book a venue during ‘peak planning’ season, be prepared to pay a premium. Holding your event during an "off-peak" time will help you save big without having to sacrifice the perfect venue.
3. Maximize partnerships
When it comes to inflation, no one is immune; so it's important to rely on partners that can help lighten costs and contribute to ROIs. Creating mutually beneficial partnerships will ease the weight of event spend and also help advertise for your partners—it's a win-win.
Consider contacting new or local restaurants to discuss the possibility of a tasting menu in exchange for advertisement in a room full of people. Advertising is almost always a great tradeoff for sponsors, provided you’re willing to come to an agreement that works for both parties.
4. Keep a close eye on contracts
It's important to know what you're getting into when you sign a contract with a service-based company or venue. With many businesses and vendors hiking up prices or adding new restrictions and add-ons, it's crucial to read the fine print before signing a deal. (Hit the link for a more in-depth overview of successful contract negotiation.)
5. Keep client expectations in check.
Ultimately, event costs are going to get worse before they get better, no matter how creative you are. So, it’s important to manage client expectations from the get-go. We’ve experienced many clients hoping to maintain 2022 budgets or even attempt to cut them heading into 2023—something that, unfortunately, is not feasible.
If there’s anything we know, it’s that transparency is crucial. A2E CEO, Mark Khan, believes that in 2023, “transparency in the relationship that you have with your clients is going to matter most, and a lot of it is [going to be] having tough conversations.”