Finding That Low-Hanging Fruit That Leads to Quick Value It is the start of a new calendar year. We are all in the middle
By By Neal Miller UNIVERSITIES:
of our season in our respective venues or in higher education institutions, and we are afforded the opportunity to take a step back to analyze our current operations. As I was listening to Earl Nightingale, who speaks about human character develop- ment and motivation, during my commute to work, he men- tioned a strong point that resonated with me that, “sometimes success is right in front of you.” We all believe we have a very efficient operation, but have we actually dug deep into our own operations to see if we are miss- ing lost revenue or opportunities? Are there relationships that within your partner contracts? Are you creating new opportuni- I was hired 2 ½ years ago by Winthrop University to lead a
restructured Office of University Events to increase both the - ty’s brand within the community. Many times, we get caught in the fast pace of our industry and actually miss the low hanging fruit that equates to quick value. While this will not work for everyone, here are some points that enabled us to triple our annual net revenue position within two years.
1) COMPLETING A FACILITY ASSESSMENT AND BENCHMARK COST ANALYSIS – Are you covering your costs and are the rates competitive within the market? Facil- ities are evolving at a faster pace than ever before with new the safety and security of everyone in and around the venue. Through our own facility assessment of defining our actual daily operating cost, we discovered that at the signing of every we were not recouping our facility cost. With this in mind, we were having to make up the deficit with additional event Our most reserved venue is McBryde Hall, a multi-purpose walls. Prior to us adjusting the rental rate, we were losing ap- annually.
2) MAXIMIZING THE OPPORTUNITIES OF YOUR BRAND – Sometimes revenue is not the only value to con- sider when evaluating events. Being a higher education insti- tution, our first strategic plan initiative is to “Support inclu- communities through enrollment growth.” Keeping in mind our strategic plan and operating budgets, we have agree- ments with 12 different high schools that span four counties. In this agreement, we supplement the potential increase in - ing within the high schools. This is a win-win for both the in- stitution and high schools as we are cognizant of their budget concerns. We increase brand recognition through these ad- vertising opportunities, and the students, parents, and friends
3) Thoroughly reviewing the associated Request for Proposals (RFP) – Analyze the contracts that your venue has - ue. Are there areas within the RFP that you have determined event industry? Can you negotiate the current RFP to increase the value? We did this at Winthrop University within our food service contract. We were able to develop a business case to negotiate a commission on newly acquired revenue through the - sion on concessions revenue. At the time, this was the correct of concessions-only events. One key factor that went into the decision was that the contract did not allow for the sale of al- cohol at the concession area. The contract value increased ap- renegotiating the food service contract.
revenue and brand potential, and that may help you. By making events program, such as increasing the event usage of the coli- seum, renovating the 3,000 seat Byrnes Auditorium to improve alcohol at specific events. -
rent services, analyze the recurring events, and focus on building closer relationships with your partners. You never know, you may be missing opportunities that can add value, build your brand or increase your revenue. Sometimes the low hanging fruit are ripe and ready to be collected. The question remains have you looked at the bottom of the tree or are you still only focusing on the sky? FM
Neal Miller is executive director of university events at Winthrop University in Rock Hill, South Carolina.
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