As hospitality consultants, we often guide our venue partners through the decision-making process of managing event sales. One key question emerges: is it better to handle event sales in-house or entrust the entire process to a catering partner? This blog delves into the factors crucial for deciding the optimal sales model, focusing on protecting sales, pricing strategies, brand consistency, cost analysis, and marketing resources.
Protecting Sales
A reliable and values aligned caterer can sustain event sales throughout their contract term. However, relying solely on a catering partner may lead to a dip in sales during contract transitions. Managing sales in-house eliminates this risk, ensuring consistent sales and marketing focus.
Pricing Strategy
Effective collaboration between venue and caterer is essential. Managing sales internally empowers the venue to lead negotiations and implement pricing strategies. This approach allows for better control over negotiation points, such as venue hire fees.
Brand Consistency
In-house management ensures that event sales align with the venue's values, providing a consistent brand experience. When the catering partner handles sales, it's vital to verify their ability to maintain on-brand service through regular KPI reviews, audits, and benchmarking.
Cost Analysis
Choosing the right sales process for your venue requires financial modelling. Shifting to in-house management model involves costs like resource allocation, a dedicated sales office, and establishing a robust sales management system. Consider ongoing investments in sales team training, incentives, and strategy development.
Marketing Resources
For unique venues, effective marketing of food, beverage, and events is crucial. Managing event sales internally requires careful consideration of existing marketing resources, with adjustments to KPIs or additional resources and training as needed.
Achieving Balance
Commercial revenue from venue hire is vital for unique venues, but finding the right balance between a venue's core purpose and commercial events sales can be challenging. Clear communication of the strategic message from top to bottom is essential to align internal stakeholders, catering partners and clients.
Great communication is key to achieving a balance between commercial catering sales and a venue's core purpose. Internal stakeholders should book venue spaces well in advance, and a manager should oversee potential clashes between internal and commercial bookings, evaluating benefits and exploring alternative options to prevent conflicts between departments.
If you're unsure about the ideal sales model for your venue, take the first step toward success by reaching out to Perfectly Paired. Our team of hospitality consultants are ready to guide you through the decision-making process. Book a free consultation today and let us tailor a solution that ensures your venue thrives.
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