Incremental Charges on Meeting Space
September 18, 2005
by Kit Cassingham
Hi Kit,
I recently completed my garage renovation to be used for meetings/events/functions. It consists of a downstairs hospitality area complete with couches, chairs, a kitchen/bar area, fireplace and entertainment center. The upstairs is the actual meeting space with seating for 16. I've set a daily rental fee of $125 for "meetings/training sessions, etc". For an additional fee of $10.95 per person, I will provide morning and afternoon coffee/water/snacks.
The facility is wireless and I have available a white board and flip chart stands as needed and basically consider this part of the daily rental fee. I have provided notepads and pens (not branded) for meetings and the most recent user requested two flip chart pads. As this is a learning process for me, I didn't quote a price for them. I've obviously been out of the corporate world too long as I was surprised that the lowest price I could find on short notice and a trip to Office Depot was $16.00 each! So, I basically had to eat the cost .
I don't want the perception to be that I am "nickle and diming" people to death, but at the same, I certainly don't want to give away the store. Does anyone have a reasonable approach as to how to charge for these items? This last group used both flip charts, but didn't use all of the paper, so I have them for the next time. Same with pads/pens....some were used, some were not, most were left behind.
Any thoughts would be most appreciated.
- Leanne Saylor
Weller Hause B&B
Comments
Since many companies who might be renting your facilities can deduct supplies but may be restricted from deducting lodging and food, I would suggest you break the price out for supplies separately. Most places I have dealt with for business meetings charge for the setup (that would include chart paper, pens...) It sounds like you were giving them a good deal to begin with, I don't think most companies would have a problem with a separate room stocking charge. Just be clear about what the stocking actually provides. (2 Flip charts, 20 pens, 20 pads of paper, 4 whiteboard markers...)
Sounds like a great setup you've got. _________________ Steve Wirt Wine Country Cabins Bed and Breakfast in the Finger Lakes and Inngenious Bed and Breakfast Website Promotion
Posted by: Steve Wirt | May 14, 2007 12:02 PM
Leanne, your rental fee seems quite reasonable. I think the beverage service charge is fine too, though maybe a bit low. You must charge for materials you provide, above and beyond your logo pens/pencils and pads, like flip charts, markers, etc. Or you have to raise your room rental fee and include a specific set of supplies for that price, like 4 markers and the flip chart. Don't forget that everytime you run to the store for those supplies you are eating into your profit yet again -- time and gas. If they want/need more than you include in the rental fee, have a price for them that includes your effort in getting them. I think it's great that you aren't charging outlandish fees for your service. Just make sure that you are covering your costs.
Consider having one fee if the group takes guestrooms and a higher fee if they are just there for the day. The higher fee doesn't have to be lots higher, but it wouldn't hurt to have it higher than you are presently charging.
Will you be providing catered meals? If you contract with a caterer, maybe you can get a commission on their fee.
Don't forget that the wear and tear for the space's use needs to be covered by the monies you charge. And a profit is also good business.
Posted by: Kit Cassingham | May 14, 2007 12:03 PM