Events - Value Versus Perceived Value

 After more than three decades of involvement with several hundred events, I have learned and believe that in order to achieve success, events musts both be valuable as well as being perceived as being valuable. As I work with many less experienced event organizers, this concept often seems to confuse them. The difference between value and perceived value is that while value is based on factors such as negotiations and planning, perceived value is also dependent on marketing and understanding the needs, wants, and what attendees might consider most valuable and essential. Failure to address both of these factors often sets an event on a downward spiral, which if planned properly, can generally be avoided, or at least minimized.

1. How does an event organizer get value? This process begins at the early planning stage, and requires organizers to understand what they wish to achieve, what their priorities are, revenue and expense realities, and professional negotiations. Before a venue should be selected, the organization's organizers must do their homework to see exactly what is needed. I have observed many organizations ignore items like audio- visuals from their preliminary negotiations, only to haunted by their oversight. Audio- visual expenses often escalate and is an area that truly needs extensive negotiating finesse and understanding. I've seen organizations be so pleased with themselves, for example, that they "negotiated" free microphones for their functions and meetings, only to learn too late that this free only included the actual microphone, and not the labor, hookup, amplification, etc., which can become extremely expensive. I've observed organizations pleased with themselves that they "negotiated" a discount off food and beverage, only to realize that the starting price, and/ or the menus, still made this a somewhat undesirable situation. Professional negotiators anticipate as much as possible, and then think about contingencies and backups. They think about the what if's.":

2. How does perceived value differ from value? Perceived value is how attendees, and potential attendees, as well as actual and potential sponsors, donors and supporters perceive the situation. Many things offered by groups may have a value, but that value is often not appreciated by others. For example, if most people do not appreciate champagne, they may not perceive an included glass of champagne as having any value, even if the organization negotiated value for the champagne. They may feel there is more value provided when an item like sushi is added, itself. While an organization might get a good price on decorations (thus, value), is the added expense worth it from a perceived standpoint, or would stock decorations make more sense, and use these funds to provide something that would be considered more valuable by others. Is it enough to simply negotiate a savings on food prices (value), or would it make more sense to figure out ways that more monies might be saved (perhaps skipping soup course) and adding an additional function with the savings. There are many ways that perception is essential, but none more than how an event is marketed and how the event can best situate itself to be considered valuable by potential attendees, thus driving increased attendance.

Great events must be actually valuable as well as be perceived as being valuable. Only when organizers evaluate and consider both of these, do they end up with the best event possible for their circumstances.

With over 30 years consultative sales, marketing, training, managerial, and operations experience, Richard Brody has trained sales and marketing people in numerous industries, given hundreds of seminars, appeared as company spokesperson on over 200 radio and television programs. He's negotiated, arranged and organized hundreds of events.