Sharing your budget with your vendor is probably the best way to get more than you bargained for. When I know someone’s budget ahead of time, I can design a package that fits their needs and maximizes their dollars, instead of blindly guessing and checking. I won’t chase a bid through a downward spiral; I don’t want to undercut my competitors (Read: trading partners) or devalue my market. But with a contract in hand, I am free to look for creative solutions to maximize the value of any budget.

Working with your vendor with budget in hand also allows them to apply their expertise in their field to solve any budget issues. Here’s an example: As a sound provider, I’ve been asked to “cut all those speakers from the quote. We just need a microphone so we can hear the presenter.” How can you hear the presenter without any loudspeakers? The customer did not have the necessary expertise to evaluate the quote and make budgetary adjustments. Once I knew their target budget, I could make necessary and, most importantly, *appropriate* adjustments to meet their needs.

The fear is that the vendor will expand their quote to fill your whole budget. First question: So what? The budget is the budget! If your stated number stretches your finances, roll the number back to a place where you’re comfortable. Are you worried you could have gotten it cheaper somewhere else? Again, so what? If the project was completed within your budget, and you hired a contractor who showed you quality work and who was a pleasure to work with, saving a few bucks should be the least of your worries. Again, having your budget in hand eliminates these concerns and frees you and your vendor to do their best work within the stated requirements.

Having your budget in hand should also reduce the stress of negotiating. “Here’s what I need, here’s the budget.” What could be simpler? If your vendor is unable to match your needs to your budget, they can suggest a compromise package, or free you to move on to your second choice in suppliers. If your budget is appealing to me, I’m more likely to make attractive offers to earn your business.

One other thought about negotiations: The promise of future work is largely worthless. Discounts and deals are based on strong business relationships. I price jobs based on labor costs, equipment costs, and other expenses. Quickbooks doesn’t have a Profit and Loss field for “hopeful future work.” A customer with a strong previous relationship, who shows me confidence and trust, will get more consideration in the value equation. If I know that every project will be subjected to quotes from my competitors, you’ve removed your value as a customer from our relationship. A strong history generates confidence in future work, and makes you a valuable customer.

Here’s a thought to maximize your relationship with a proven vendor who you trust: Consider contracting your year’s events up front. A $30,000 customer gets a lot more consideration than a $3,000 customer who might have 9 more jobs this year. You’ve also taken the bidding and review expense out of the equation both for yourself and your vendors. That can add up to significant savings that can be applied directly to your events.

E. Lee Dickinson | Vice President for Live Events
Advanced Visual Production | Sound.Lighting.Video.Design