How do you decide the budget for event production?
Hello! In Valentine’s Day, me Somemiya, I’ve been enjoying a girls’ party at my friend’s bar. It is not scary if you eat high-quality chocolate that you think you will eat yourself and eat it with everyone!
…… Hmm, is there no one to give it? That’s another story
By the way, today’s theme is “budget group” which is one of “event circumstances that we want to hear but can not hear”!
Information on what kind of budgeting should be done at the time of the event is not readily visible.
In many cases, you will be in charge of an event, and you may often have the head, “How much is it going to cost in the first place?””Where can I cut and where can I not?”
So, as an example this time, we will tell about the breakdown of what kind of budget we are making at events produced by Global Produce!
Please note that this is just an example of our company, and other event companies are not necessarily the same.
<Announced! Event expense ranking TOP 5! >
What matters most about the event budget is “Where do you spend the most money?”
First, let’s introduce the breakdown of event expenses in the form of ranking!
【Event Expense Ranking】
1st place Venue fee (food and beverage expenses)
Event expenses, the first place is a “Venue fee”.
When doing an event, it is an expense that can not be cut down absolutely, and the ratio to the whole expense is also quite large. There may be a lot of people who will give me a star on the cost of the event from the venue cost?
Event venues range from Tokyo Dome to small event venues, with locations varying from Tokyo to regional and overseas. It goes without saying that “where to use” is the heart of the event, from capacity to location.
In addition, the “site fee” in this case includes the food and beverage expenses of the party, and also includes the accommodation expenses when there is a mandatory stay such as overseas. When it comes to hundreds of overseas events, the cost is ….
However, the venue cost is just the place fee. It is the cost of renting the empty venue, so-called “Start Line”.
2nd place / 3rd place are Video related expenses / Art related expenses
Because these two rates change according to “whichever priority”, we made the same rate second place.
“Video related expenses”, as the name implies, is the cost associated with the video used in the event.
This includes rental costs for large screens and projectors, opening film production costs for events, and video production costs for award winners.
Now, video is essential for events. Furthermore, it is also a part that continues to evolve daily, such as projection mapping and 600-inch LED.
At first, it is possible to reduce the cost a little by using the equipment provided in the venue, but then the quality and impact of the presentation will be weakened.
The event is a result of the thoughts of many concerned parties. By putting emphasis here, you can keep your eyes on the eyes and stimulate the feelings during the event.
“Art related expenses” is the cost to decorate the venue. Specification are objects, display panels, stage decorations, displays, red carpets etc.
At the event, the scene of the moment you step into the hall, the world’s first impression, says something. Depending on how the entire venue is designed, the degree of satisfaction of the event will change greatly.
In particular, it is a point that I would like to put more emphasis on events such as product launches and product sales.
4th place is Production cost
It is about the production cost of so-called “Novelty”. Although what kind of item to make depends on the event, it also includes the cost because I put logos and make it with an original design.
Especially for inbound events, you often make items that give you a feeling of Japanese spirit, such as original fans and lanterns.
5th place is Personnel cost
It is the labor cost of the operation staff of the day such as the venue arrangement, the reception desk and the guidance. Of course, the larger the venue, the more participants there will be.
By the way, appearance expenses of entertainers and artists are not included here. The cost of appearance is largely different depending on the person, and there are cases where the cost of appearance of the artist exceeds 2nd video related expenses.
<Specifically, how do you set the budget? >
What is important when budgeting for an event is the concept of “What is this event for?”
You can aim for high quality as far as you aim, but it does not mean that you can use the latest equipment, and if you are flashy.
The event is where many people actually gather, meet and interact. Hospitality can not be neglected.
And, conversely, it’s not the same as saying that if you don’t have the budget, you should cut the costs down.
The event is only for “participant delights” and “to achieve the purpose of the client”.
Global Produce always think “What is the best equipment to maximize the effects of this event? Location? What is the decoration?” and I will set up a budget while being careful not to shift the axis.
We will grasp the essence of the event, work to maximize the effect of implementation, and accumulate trial, error and ingenuity. From the budgeting stage, our challenge has begun.
・Is it a “new work presentation”? Is it “the award winner”? Is it an “annual event”?
・What do clients want to communicate through the event?
・What do participants want from the event?
・What is the maximum amount of money a client can spend per participant?
It is a budget organization that thinks “Where to use the budget” and “Where to give the impact” etc. after firmly holding down these elements.
Explore with clients the point where quality, effectiveness, and participant satisfaction match.
In fact, budgeting is a great creative job.