How do you benchmark event costs?
You benchmark event costs by comparing quoted venue and supplier prices against comparable events, historical spend and market reference points — adjusting for location, seasonality, size and inclusions. The result tells you whether a rate is competitive and where negotiation or re-sourcing could add value.
Every quote looks reasonable in isolation. Benchmarking supplies the context that makes value judgements possible.
1. Normalise before you compare
Strip quotes back to comparable units — per-head DDR, room hire, per-head catering — so you compare like with like. This depends on good data from spend analysis.
2. Adjust for context
Account for city, season, day of week, size and inclusions. A London midweek conference and a regional weekend meeting are not comparable at face value.
3. Use multiple reference points
Compare against your own history, comparable events elsewhere in the organisation, and market norms. The more reference points, the more reliable the benchmark.
4. Act on the findings
Feed benchmarks into negotiation, decide which categories to re-tender, and validate your preferred supplier rates.
Make it continuous
One-off benchmarks help; continuous benchmarking built into sourcing keeps every major booking honest. This is a core part of our benchmarking service.
Frequently asked questions
What data do we need to benchmark?
Ideally normalised historical spend and quotes. Even partial data from spend analysis gives a useful starting baseline.
Can we benchmark without lots of past events?
Yes — external market reference points and comparable-event logic still allow a meaningful benchmark.
How often should rates be benchmarked?
Major bookings before confirmation, and preferred supplier rates at least annually.