An association meeting planner who’s contract with a third-party exhibit management company was coming up for renewal asked me recently for advice on negotiating the new contract. The question prompted an interesting discussion.
How you approach any negotiation of this kind should really be driven by your goals and objectives, and how you measure “success.” If the management company is responsible for sales and not just logistics management, and assuming non-dues revenue is as critically important to your organization as it is to most others, a key measure of success would be your bottom-line revenue (i.e., how much you have left after deducting all the fees paid to this company).
When negotiating contracts, there’s a natural tendency to focus on fees. When it comes to sales, adding (or increasing) incentives might actually be more effective than negotiating a lower fee.
Of course, there’s no blanket approach to contract negotiations since each situation is unique. However, I think it is safe to say that you will want to place an emphasis on performance. Any company you contract with should serve as a true partner, focused first and foremost on achieving your goals and objectives, understanding that their “rewards” come as a result of succeeding on your behalf.