WHY IN-HOUSE AV OR, MAYBE, WHY NOT?
Understanding in-house AV:
What is in-house AV? Generally, hotels have a contract with an AV company. Let’s read this again: the hotel and the in-house AV company have a contract together. Meeting venues want to increase their revenue per event. Working out all of the details for your event, including AV, through the venue may seem like the easiest option, but there is a lot to consider when you look at the big picture.
In-house AV will be used because they are convenient; you are introduced to them when selecting your location. However, it is important to know that the in-house AV company has a revenue-sharing agreement with the venue in their contract. In order to compete, dollar-to-dollar, they will also do something outside AV companies can’t do: throw in free power, or free internet to sweeten the deal. But, if we look deeper into the costs of an event and the quality of production and service that you will be receiving, is it worth it?
Are you really saving money with an in-house AV company?
Let’s take a quick look at a hypothetical example. Two AV companies; one is the in-house AV and the other is an independent AV company.
Both estimates have come to $20,000 for equipment and labor services.
The Outside AV Company
The outside source is going to provide you with $20,000 worth of equipment (projectors, monitors, screens, microphones, etc.) to make your event look and sound great. Most importantly, they will provide you with a well-experienced staff to set up and operate your event.
The In-House AV Company
$20,000 to an in-house company is not as forthright as $20,000 is to you. Instead, remember that the hotel and the in-house AV have a contract and revenue share up to 50%. This means that you are only getting $10,000 worth of equipment and labor for your event.
The Hidden Details
The difference between $10,000 and $20,000 in equipment and service requires little explanation in terms of raw potential. If the in-house AV company throws in internet or power, often upwards of $3,000 services, it may seem to save you that $3,000. In reality, this only means you will be getting $13,000 dollars worth of service, as opposed to the $23,000 worth of service that you would be getting with an outside AV company.
Furthermore, taking into consideration that they are on retainer, in-house AV companies are forced to take your event on. They have little interest and little investment in your goals; they have already been paid, and your satisfaction is irrelevant. There is always going to be another company looking for a cheap deal and they will always have business.
How outside AV circumvents these issues:
A good outside company will give you the most bang for your buck. Your employers will be impressed with the level of production that you have brought to their cause; they will feel an inflated sense of the success or scale of your business, which is important to retention. Plus, a happy employee is a happy customer.
Outside AV companies rely on repeat business to stay afloat, so they will put in effort to learn your wants and needs over time. For the next conference you plan, you won’t even need to share or re-state your vision; it will be theirs already and they will know exactly how you want it executed.
In-house (and, thus, whatever conference center they are contained in) are only looking to meet their bottom line. Outside AV is willing to be flexible. The more they know about your business, the more they will know exactly what equipment you need and how you like your events run. Whereas some in-house AV companies will only leave one or two guys on per event, most outside AV sources will bring on a crew of people; enough for your event, but not more than you need. More people mean more ground can be covered, and the clean up and set up will be taken care of. This will leave you with the free time needed to run final tests and rehearsals, hours before your event starts. With the AV production handled, you have time to focus on your job and the unavoidable stressors of executing a successful event.
If you are looking for more reasons to work with an outsource AV company, here are four more reasons.
