Transparent pricing
How do PCOs decide on the rate they will charge a corporate client? Do they weigh up the delegate numbers, factor in the overheads and add a modest commission, or do they simply consult the tea leaves and charge whatever suits?
There have been grumbles lately about inconsistent pricing in the meetings industry. The lack of transparency in some quarters has already had repercussions, with some bigger organisations bringing in outside procurement agents.
Do you think PCOs need to be made more accountable? If not, why not, and if so, what would be the best way of regulating the industry?
posted by CIM Magazine @ 4/11/2007 02:11:00 PM
2 Comments
2 Comments:
Probably they use all of these things but who cares? It is offer and acceptance - if a PCO quotes a fee and it is accepted, then it does not matter - if you don't like it, reject it. Which industry offers consistent pricing anyway? What is the price similarity between a Hyundai and a Rolls ROyce, but they are both cars.
Perhaps we should ask how do hotels strike rates (that is simple - whatever the market will bear and alsways within a few dollars of logical competirtors, but no real analysis beyond this). What about magazine advertising rates - should advertisers be allowed to ask what it costs to print and post the publication as part of their price quote? Of course not. Whyt this continual fascination with transparency bit only when it comes to PCO's. Name one other part of the conference industry that divulges all of it's cost structures when quoting for business? Just one!
I work with a PCO in Adelaide. I think a/v companies are probably the worst I've encountered with absolutely no similarity with their prices. I recently sought quotes for a job and they ranged from $16000 to $7250. Yes I know some companies will not deliver the same level of service but knowing some of the companies, I would be compfortable with one or two of the lower quoting companies.
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