June 2006

Meeting Budget

by Nancy Mann Jackson

 

When you hold a meeting in a convention center, you're rarely allowed to bring all your own vendors along with you. Most convention centers have at least a few "exclusive providers" and "preferred providers," meaning planners are required or recommended to use those vendors when meeting at a facility. Because the guidelines and vendors are different at every center, and some planners have relationships with their own vendors, the exclusives game can get confusing and frustrating.

"The subject of exclusive suppliers is a hot topic, especially when dealing with all-in-one meeting facilities," said John Houghton, vice president of sales and marketing for the Metro Toronto Convention Centre.

"There is an appropriate mix, and there is a need for exclusive suppliers in order to maintain the appropriate levels of care, consideration, and safety for facilities and the people who attend events."

Convene talked with Houghton and Luther Villagomez, general manager of Houston's George R. Brown Convention Center about exclusive providers and what planners should know about the concept.

Convene: Does your convention center have exclusive providers or preferred pro- viders of certain services? If so, which services?

Houghton: The only subcontracted exclusive suppliers that we have are for electrical, rigging, and coat check service. A number of other services are exclusive but are supplied by our own staff, such as food and beverage, cleaning, and communication services.

We also have what we call "Official Suppliers" who are in effect our preferred suppliers and we have them for event security, show decorating, audiovisual, customs brokerage, and production services.

Villagomez: Houston's George R. Brown Convention Center has two exclusive providers on premises: ARAMARK Food & Beverage and Smart City Networks for telecommunication, data, and electrical services. Booth cleaning is a service that is provided exclusively by the George R. Brown staff.

AVW-TELAV Audio Visual Solutions is the preferred in-house provider of audiovisual and computer rental equipment, staging, event logistics, theatrical lighting, concert sound systems, and business center services. It is, however, the exclusive contractor for all rigging done within the facility. Initial Security is another preferred in-house provider for show and event security.

Convene: At your center what do the terms "exclusive provider" and "preferred provider" mean?

Houghton: Exclusive provider means just that; you must use these people when you rent the facilities.

Official or preferred pro- viders are companies that we have selected and that we know can consistently provide the level of customer service satisfaction and value that we want to be known for delivering. You can use our official/preferred or bring in your own suppliers. No additional fees are required [if you choose not to use the official providers].

Villagomez: Our exclusive providers operate under long-term contracts that require them to make extensive capital investments in the George R. Brown facilities. In order to protect the revenue stream that pays for these investments, our exclusive providers are granted protection from outside vendors.

We encourage clients to use our preferred providers. Their knowledge of the building and large inventory of equipment and personnel can greatly enhance our clients' planning and management of their events. In most cases, clients can take advantage of the years of experience the in-house contractors provide at the same or reduced cost.

Convene: What are the advantages to using a center's "exclusive" or "preferred" provider?

Houghton: When you talk about the benefits of using an exclusive supplier you need to keep in mind the service they provide. Electrical services are exclusive because we don't want just any company having access to critical systems like electrical. You want someone who is intimately familiar with our infrastructure and knows what can and cannot be done. We never want the lights to go out during an event due to someone who "thinks it should have worked without any problem," but didn't understand the electrical load of everything else that is going on in the building.

Our exclusive suppliers maintain offices within our facility and are linked into our communication systems. They have a warehouse full of gear on site to be able to deal with last-minute requests or last-minute changes. These are also "event savvy" people who are used to working with the idiosyncrasies of the business and people who have immovable deadlines.

Using our "exclusive riggers" means you don't have to worry about people trying to hang things off our infrastructure that might materially harm the building or the people passing below. Knowing who is hanging equipment means we know that it is safely hung. Also, a move in can go a lot faster if you have a team that can gain early access to the facilities and know exactly what tolerances various hanging points have and what the safety requirements are for our facility. They have the necessary high-reach equipment on site and a familiarity with the building and systems that allows things to move faster than temporary staff.

Preferred suppliers have offices in our facilities and are linked into our systems. They have dedicated staff that works side by side with our team. They are able to get early access to space, if it is available, to do any prep work they can before the official move in starts. In most cases they are better equipped to handle last-minute requests or deal with problems, because they have an inventory of gear on site.

You know if you hire one of our preferred suppliers, you are going to get great service. Having preferred suppliers enables us to survey and track results, and work with them to improve. Having preferred suppliers also develops a sense of team and doing what it takes to get the job done.

Villagomez: Our exclusive and preferred providers are industry leaders with extensive resources. Each has experienced management staff on site with extensive knowledge of previous events held in the building. The in-house providers have ample equipment and supplies on hand to accommodate any emergency or oversight.

Meeting planners greatly value the added convenience of site-based vendors. Site-based vendors have a vested interest in each event held in their facility. Making every event a success is their goal and mandate.

Convene: Are there situations when it may be best not to use the exclusive or preferred provider? If so, when?

Houghton: If a company is exclusive, then by definition there is no option to use someone else. I imagine that if you have a long-term contract with a supplier it may not be appropriate to use a local preferred supplier.

Villagomez: There are few instances that come to mind. Perhaps a long-running show that has used the same sound and lighting company for many years and is intimately familiar with the show's needs might be an exception, but I think our preferred provider's familiarity with the building negates that perceived advantage. Also, our preferred provider can partner with outside vendors through support of labor or equipment.

Convene: What else should meeting planners know about exclusive and preferred providers?

Houghton: Being an exclusive supplier creates high expectations of service delivery and customer service. They got the contract because they have proven themselves to be the best in their field, given the unique circumstances of the facility in which they are operating. You should let any facility know if you are having any issues with an official and expect immediate improvement if issues are not meeting your expectations.

Preferred, or official, suppliers are proven providers of the products and services they sell. You don't have to wonder about ability to deliver or interview a lengthy list of potential suppliers. These companies have the best people and the best gear locally available. You can use them to benchmark other potential service providers.

Villagomez: Earning repeat business motivates each of our providers. They take the long view in dealing with each client and event. In the minds of some, the words "exclusive" and "preferred" may convey a sense of entitlement. Entitlement does not and cannot exist in the minds of any of our providers.