MPI
Creativity versus profit
MPI CORRESPONDENT PAUL COOK LOOKS AT SOME OF THE ISSUES CRUCIAL FOR BALANCING THE BOOKS IN EVENTS
T he demands on event professionals continue to increase every year . Clients rightly expect an event to be sustainable , inclusive , and accessible . However , it also needs to be engaging , with the right amount of learning , networking , and social activities . These demands are accelerating , and for many event planners the timescales for delivery have become shorter . Delivering creativity while turning a profit in this environment can be challenging .
It is not surprising , as we live in a hybrid world that has high expectations and a need for immediacy . Drew Holmgreen , chief experience officer at MPI , sums up the position nicely : “ We ’ re a society that ‘ wants what we want , and we want it now ’.”
But , when sitting in a brainstorming meeting with a client , the focus is on how to make their event a stunning success . A meeting professional could be forgiven for getting swept up in the enthusiasm of the moment and promise too much .
It ’ s easy to forget the impact of inflation on the cost of resources and , if clients expect more creativity bang for the same buck as in previous years , something will have to give .
It ’ s time to manage expectations . As Eric Rozenberg , host of The Business of Meetings podcast , points out : “ Even if you have good revenues , a robust pipeline , an effective marketing campaign , and an inspiring culture , if your profit margin is too low , or if you face cash flow issues , you ’ re driving your business into a wall at 150 miles per hour .”
Keeping the profit margin top of mind Successful and sustainable businesses keep the profit margin top of mind . According to MPI ’ s Q3 2024 Meetings Outlook survey , 47 % of planners and 70 % of suppliers reported increases in profit margin shifts year over year . In fact , 54 % of suppliers and 38 % of planners reported profit margin growth of up to 15 %.
However , on the shrinking margins side of the equation , 25 % of planners and 15 % of suppliers reported a diminished profit ratio over the last year . Reducing profits demands attention .
So , what can event professionals do to run creative events that make sense ? Communicating with clients is a must , especially being transparent during the budget creation process . Pointing out taxes , surcharges , and higher rates for last-minute ordering of production kit is essential . Also , spending the budget on the right things is essential .
Being clear aids creativity Mozelle Goodwin , CMP , HMCC , owner of Global Rendezvous ,, says : “ Detailing how clients can best spend their money based on the expected outcomes , nice-to haves , company policies , and compliance guidelines has always resulted in a positive experience for all who are part of the decision-making process .”
She ’ s right . Talking about money and being clear from the outset are imperative . From there , creativity can
Top : Mozelle Goodwin , owner of Global Rendezvous ; above left , Eric Rozenberg , host of The Business of Meetings podcast ; right : Drew Holgreen , chief experience officer at MPI
come alive . Decisions on where the budget is allocated between production , content , and food and beverage become easier . Do you need more refreshment stations , or would it be better to spend that money on capturing your content ? Can you use AI for basic translation , or do you need a human solution ?
Event professionals need to balance creativity with financial practicality . Clear communication and smart spending are key as client demands rise and budgets shrink .
Managing expectations early and prioritising essential costs will ensure your events remain powerful and profitable . n
ISSUE 133 / CONFERENCE & MEETINGS WORLD / 19