Taking your DMC on the Road: A Cost Effective Extension to Your Planning Team.
Economic conditions are impacting corporate planners in a number of ways. In addition, procurement is putting extra pressure on all non-revenue producing departments to curtail spending, which is directly impacting meeting budgets. With the added pressure of possible lay-offs, planners need to impress management with outstanding quality meetings at a fraction of the cost.
Planners have begun looking for innovative solutions to current economic challenges and one particular strategy seems to be working: partnering with a traveling DMC. Establishing a strategic relationship with a singular DMC partner that is experienced operating in numerous destinations, has been proven as a cost effective and quality consistent best practice for a growing number of corporate planners. This strategy is not to be confused with DMCs that have multiple offices, but rather an independent DMC with the knowledge, expertise and contacts, who can travel with the planner as an extension of their team.
For the most part, independent DMCs have lower overhead costs than the nationwide firms simply because they are smaller operations. However, a reputable large independent DMC, like Masterplan, Inc. that has physical offices exclusively in Chicago, carries enough purchasing power to drive bargains for clients worldwide. With the consolidation of many transportation companies and decor suppliers, combined with local contacts in cities around the world, established independent DMCs that have the know-how to operate in multiple destination are creating a new niche market in the world of meeting planning.
A traveling DMC can save 5-25% off meeting costs if a strategic and collective planning approach to the overall meeting logistics is addressed. The basic strategy is built on the ability for the traveling DMC to buy direct (with discounts) in each destination, charge the planner a service fee and still net below conventional DMC rates. Additionally, the DMC can perform staffing functions to help the planner run the meeting; from airport arrivals, to the hospitality desk to advancing F&B functions and AV, etc.
And the process only keeps getting more efficient. Once the planner and their traveling DMC have a few meetings under their belt together, it’s surprising how much time is saved not having to reinvent the wheel with a new vendor in each new destination. And, the end result will favorably impact the bottom line. The traveling DMC can become a valuable extension of the planning and on-site operations team, not only for one meeting, but for the company’s entire roster of meetings.
What are the costs and how does the DMC make money? The costs for travel and on-site expenses for the traveling DMC are in most cases absorbed by the discount in fees provided by the traveling DMC. Masterplan, Inc. discounts fees in exchange for repeat business and lower overhead associated with the sales process of a one time client. The economies of scale are tremendous. The win-win for all is a powerful new strategy and it’s working for many corporations.
MasterPlan, Inc. is a Planner Preferred Vendor on Hereschicago.com, Chicago's Online Resource Directory for Meeting, Association, Convention and Conference Planners seeking Chicago solutions for their corporate and assocation meetings in Chicagoland.
