Using in-house vs. independent AV professionals
Published: November 9, 2009
Welcome back to month two from your friendly AVGirl, Midori. I know we are in the middle of discovering the various positions and responsibilities of our audiovisual (AV) crew; but I would like to address a reader letter I got last month that reflects a repeating source of concern and debate in the meetings industry … the furious matter of in-house vs. independent AV providers.
What does “in-house” mean exactly? In most cases, this is a situation where an AV company is contracted to provide AV services at a hotel, convention center or other venue. In exchange, they pay a percentage of their revenue to the property. At other times, in-house providers may be part of a preferred vendor list. Another, increasingly frequent, situation that has sparked major headache amongst planners is when this in-house provider is actually an employee of the hotel who has minimal experience with AV … whether they are usually a banquet manager or something similar (and yes, this has happened!).
The seemingly innocuous in-house concept has generated countless conversations, several letters for advice and many online discussions. The issue generally arises after a planner signs their contract with the property. In skimming over the the AV section, they miss a clause that states they will have to pay anywhere from five to 40 percent (ouch!) of their total AV billing to the in-house provider should they choose to bring in their own service provider. This is commonly referred to as a corkage fee — and it is a red flag to alert planners they need to strike through this portion of the contract! Even if you’re not sure yet who will provide the AV, it is imperative to leave yourself with options and not subject yourself to such a restrictive situation.
So how do you circumvent in-house v. independent provider challenges?
- First and foremost, if you have an AV provider that you’ve enjoyed working with in the past, contact them before anyone else. This way, you have service you know and trust as well as pricing you can rely on to be fair.
- If not, then take your mama’s advice and shop around! Definitely obtain a bid from the in-house provider, but don’t be afraid to contact two or three independent providers for more bids (the main reason why it’s so important to eliminate the corkage fee from that contract).
- Never assume that in-house is the most affordable or convenient. Believe it not, most of the in-house companies are no longer keeping anything but the most basic of equipment on-site.
Finally, I suggest two key questions to ask any service provider:
- How soon can you respond to additional equipment needs?
- Will I have a dedicated project manager pre-, during and post-event? During the event, what will be their availability? (e.g. How many simultaneous duties/events are the expected to handle? Will they be available 24 hours/day?)
This truly is just the tip of the iceberg. Obviously, you’ll still want to ask all of the usual questions of your service provider, but at least this will help with your decision on whether to go in-house vs. independent.
As this is truly an advice column, I’d love to discuss more of the burning AV questions that you’ve been harboring but were honestly just too afraid to ask. Please e-mail me, midori (at) pulsestaging.com to possibly see your topic in a future column.
Join the discussion
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Midori Connolly Says:
November 11, 2009 at 3:59 pmHi Stephen,
Thanks for stopping by and taking the time to leave a comment!I agree that there are stars and standouts in every organization, no matter the label. This is why it’s so important to do the research and discover whether the overarching, employing organization provides these “equal if not more talented” stars with a corporate structure that allows them to achieve their full potential in an event situation.
Midori
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Kristi Casey Sanders Says:
November 11, 2009 at 4:37 pmStephen & Midori-
I’m wondering what you can do if you go with an in-house provider and have trouble with the level of customer service or technical assistance you receive — who do you complain to? I’ve heard from a lot of planners who are frustrated because the hotel sales contact basically throws up their hands if there’s a problem, saying the property is in a long-term contract, so there’s no incentive for good customer service for the in-house, and no way the hotel can penalize them for bad performance.
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Sam Smith Says:
November 13, 2009 at 11:27 amHi Midori -
Great Post!
I would like to emphasize that the meeting planner needs to check these A/V, LAN and Wifi clauses before signing the contracts. In some cases, these clauses that meeting planners “unknowingly” accept make it cost prohibitive for them to bring in other technology vendors for special services – AV or otherwise.
I will leave the highly variable quality (technical knowledge and service orientation) of the internal staff for another day. There should probably be a rating system for this stuff.
Thanks for starting the conversation!
- Sam
@samueljsmith
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Michael McCurry Says:
November 13, 2009 at 11:39 amHi Midori, great post and some really solid points you raised here!
I would like to add a couple of comments:
To Kristi Sanders — if you are having difficulty with an in house a/v supplier I would recommend speaking with the hotel’s general manager about the situation. As the GM has the decision making authority regarding the selection of in hous service providers they also have the lattitude to leverage that relationship when there are service issues.
I am a strong advocate of using supplier partners that have provided tremendous service experiences in the past so certainly that should be an important consideration in your review process. I am also a believer in getting competitive bids, as you pointed out, as that affords the greatest opportunity to leverage value.
Finally, want to make a point regarding labor cost. If you select an a/v provider that is not in-house, you should research the cost of moving freight in an out of the facility (Chicago is a perfect example — McCormick Place) as the value you may obtain through a better pricing offer could be diminished by the labor cost of moving the equipment in/out of the facility due to union rules. I have learned the hard way about this issue. :)
Thanks Midori, for starting a great conversation!
@michaelmccurry
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Pat Ahaesy, CMP, CSEP Says:
November 13, 2009 at 12:52 pmMidor, I’ll add my thanks for starting the conversation. It is important tht planners read that contract carefully, beyond attrition issues, and f&b minimums. Not reading and crossing out :-) the areas about a/v, wi-fi, etc, could cost a planner far more than the other clauses.
I hope that this conversation continues.Pat Ahaesy
@pnv123
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Stephen M Says:
January 8, 2010 at 11:14 amYou will never get high quality personnel from an in-house provider!! Here is why. Let’s say an IN HOUSE PROVIDER charges you labor of $50 an hour. They have to give 10-20 of that to the hotel as a kick back, they want to keep as much of the remaining as possible so they pay their AV Tech $10 – $15 an hour. Any tech who is really good at what they do will find that they can freelance for $25 to $50 an hour easily. Therefore the really good AV talent only work for the in house companies when IN HOUSE can’t cover a job with their in house staff. So your chances of getting an A List tech are slim with in house. If you have high expectations for your event and want things to run smoothly, and you care about sound and video looking and sounding great, and want your cues hit on time… Then hire an OUTSIDE PROVIDER and demand they give you their BEST TECHNICIANS. Ask them specifically which techs are working your event, and hold them to that list. If you can find out what those techs get paid, or post your own ad on Craigslist. And if you want the best AV, when recruiting your technical staff, think of them as a skilled position and not as a job that any nerdy geek can handle. The very talented video and sound techs actually have an amazing amount of technical training and experience. You get what you pay for.
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Vinnie Says:
February 13, 2010 at 8:38 pmHi Midori,
This topic has filled many of the event industry social networks recently.I would also like to address Kristi’s and probably many others concern as to who to complain to when performance is lacking (to be nice). First, even shows with outside contractors, services and equipment of far superior capabilities will sometimes have their problems with missed cues and equipment malfunctions.
Everyone above has made all the main points about lack of experience, in vs out drayage(which really only applies to convention centers and union venues where teamsters are required) There are some exceptions, I know!
A high percentage of the hotels (chains, major cities and resort hotels) have contracts with nationwide or regional suppliers. Find this out and you can address your concerns to the home office.
I agree with Midori that end clients need to cross out clauses that they find outrageous. Some were mentioned above. This practice of the use of in-house only has existed since the mid-seventies mostly at Hiltons. Marriott tried it in the early 1980’s. The application of the “corkage” type fee came about at first about 20 years ago. In each of these cases the buyers, usually on the advice of their production company was able to work around it.
But, recently it has come back pretty much across the board, partly because of diluted experience of the people corporations leave the contract responsibility to. Of course time restraints on meeting planners and demand for space may not allow one to reach out for help. Therefore another argument for relationships. Marriott just posted profits for ‘09 yet they are closing a Ritz Carlton near Las Vegas. Hotel’s are making profits on gouging on amenities and services while production budgets are tightening.
However the smaller budgets don’t always allow for a relationship formed on one coast to allow shipping to the other or at all next time.
The answer to that of course would be an organization that has numerous offices, with an excellent reputation such as PRG, among a few others.
>The other might be forming a relationship with a freelance Technical Director where you can get advice on your exact needs vs the inventory of a vendor, help with your RFP regarding tech speak, recommendations of local or regional suppliers and key contract techs, and budget permitting onsite oversight, quality control and implementation of industry best practices.
This topic among other similar features are going to be covered in my blog coming out shortly. If you would like it e-mailed send your e-mail to ring @maintent.com and visit my website for some background http://www.maintent.com
VR
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November 11, 2009 at 12:05 am
Service provider” is merely a label. Admittedly, it has grown to have negative connotations in some light, but at days end, it’s just a name. In my opinion, attitude and actions are much more likely to establish or change perceptions within an organization.
A similar challenge that we, as in-house designers face, is defending our abilities when being compared to those of studio or agency designers. We know that we are equally if not more talented :) but because of perception, we have and will continue to go above and beyond expectation to earn the recognition that we deserve. The Make/Think conference proves that we’ve made tremendous progress in this. In-house design is much more recognizable than it has been in the past and we accomplished this through our actions…not our name.
The same attitude applies here. If we focus on exceeding what is expected and being more proactive within our organizations, the respect will likely come…regardless of what we’re labeled as.