The Event Budget Trickle Down Effect
Written by: Eric Electric
Calgary, Alberta, Canada
Originally posted on June 14, 2012 on Eric’s Personal Blog.
I’m no Economist…
…In fact, even after completing a business degree, I never took an economics class. But 7 years of event industry experience leads me to believe that us, entertainers nibble at the crumbs that fall from the event table.
“WHOA! Don’t be such a pessimist! What about all the Brad Pitts’ in Hollywood making $30 million a film. There’s money in showbiz!”
I answer in a somewhat Occupy Walstreet-esque manner: “Yes, there’s money in showbiz, but not as equally distributed as you might think. Its one part luck, and nine parts working like a dog. Hollywood makes up around 0.1% of working entertainers. I don’t shoot for Hollywood odds”
My Crazy Lil’ Theory
With 7 years of experience and counting, and hundreds of events under my belt, I have developed a theory on the order and proportions of how people and companies, spend money on events. Understanding this relationship, has allowed me to better serve the needs of my clients, and in some cases “jump the line” in my favor as an entertainment provider.
If you are reading this as a potential client, I hope this assists you set priorities on where and how you wish to spend your event budget. As you read this, you’re likely all spent and we both know it! How’s that for a magical prediction!?
If you are an event professional, I hope this helps you foster better relationships with your customers, leading to better events! If you have a success story to share, please send it to blog@ericelectric.com.
To better understand the larger theory behind this, make sure you read up on Craig Elias of Shift Selling “Trigger Event Theory”. I had the pleasure of meeting Craig as a university student. The 1 hour he spent with me, has been a key guide to how I conduct my business. http://shiftselling.com/book/#.T9mD47WvLTo
The Budget Trickle Order
Remember this well Grasshopper! In general for private events with budgets up to $20,000.
- Venue
- Catering
- Decor
- Photographer
- Event Coordinator
- Marketing & Promotion
- Entertainment
For weddings the order of HOW the budget is spent changes slightly. Entertainment almost always still falls last, because it often becomes whatever is left in the budget. The last few dollars of a budget is what is typically spent to hire a DJ, band or entertainer.
- Jeweller
- Venue
- Church/Temple (May take #2 spot depending on couple)
- Catering
- Bridal Garb (You know the “Dress”, hair, makeup, nails, shoes, tanning, gym membership? All very important!)
- Photographer/Videographer
- Decor
- Event Coordinator
- Stag and Stagette Parties
- “His” Tux
- Favors
- DJ/Entertainer! Whoot that’s me!
Funny how Party Favors seem more important than the one coordinating the party…?
I’m Kinda Important…”I Have Lots of Leatherbound Books”.
The Anchorman. The Movie. Love it or hate it, one thing is sure. Ron Burgundy (played by Will Farrell) is an unforgettable character. He leaves a memory burned in your brain.
Its true. We entertainers like to think of ourselves as important. Necessary. Like how Ron Burgundy believes he is the only one suited to be an Anchorman. And maybe we are important to your event? I leave completing that thought to you.
But what would happen to your event, IF, you had a personalized sugar statue placed on a cupcake for every guest? BUT you had no activity for your guests to enjoy? No dance, no kumbaya circle, no “pin-the-tail-on-the-donkey“? They would quickly eat and leave.
I challenge you to consider this:
Will guests remember the taste of the cupcake they ate, or the EXPERIENCE they had at your function? Will you consider bumping your mental priority of us entertainers up a few notches? Will YOU???
Keep it Classy!
-Eric Electric.
www.EricElectric.com
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