Project Planning and Cost Reduction
Project planning or planning a budget can be one costly affair if not handled keenly; especially regarding time and cost. Budget planners need to use cost-effective measures when budgeting to maximize the use of the resources available. There are several ways planners can use to reduce costs. Purchases should be made early and negotiated prices. Any installations needed should also be done soon enough to detect failures and immediate corrections done in time. Outsourcing also proves to be a good way of cost reduction; professional services can be bought at lower prices proving beneficial for the budget. For example, in the given budget and resource plan, there are a few areas in which cost saving can be implemented.
Gifts and Entertainment
In this area, the planners can reduce costs by buying gifts in bulk. Whenever goods are bought in large quantities, incentives such as discounts are attracted, reducing the overall cost of purchase. Deductions lower the cost of acquisition. The planners need to shop around and get quotations from different suppliers. With this, they will find that certain suppliers offer the same goods but at lower and reasonable prices.
In most cases, cheaper price does not mean poorer quality. Some of the suppliers have easier access to their goods than others since they are nearer to the source. Shopping around will thus allow planners to reduce cost by getting the lowest price while still maintaining quality. At this point of purchase, it is also good to differentiate between luxury and necessity. There is no need to buy an expensive and luxurious item while a cheaper option would do the same job. During purchases, the planners could also use their negotiation skills to ask for lower prices; this will eventually leave some pocket change hence cost saving. When looking for a venue, there are those with a better package where entertainment is a part of the package. Such a venue is beneficial to the planners since it reduces the cost of hiring equipment and technicians all at a go (Cao, 2017).
Equipment
Lighting, for example, is a source of energy. To minimize cost in this area, alternative cheaper sources should be sought. Solar power is one such source of lighting that does not involve high prices; it's a one-off cost since there are no monthly costs involved. Moreover, it can be used for as long as the company exists and is well maintained. The lighting, in case special lighting is needed, can also be hired. Special lighting may not be required for the later days, thus hiring proves to be a better option. Some venues have extra facilities such as lighting which will allow planners to cut cost as they only must pay for the site. Most of the entertainment segments like photo booth and photography can be outsourced. Outsourcing provides professional services at a reduced cost. Professional photographers can be hired and paid for the three days as opposed to buying the photography equipment. Since the event is one-off, it will be costly to make any purchases and leave the items unused in the later days. For the DJ Surround Sound, a more digital option should be sought to reduce the use of the workforce. In case the equipment must be purchased, the planners could choose to go for used equipment instead of buying new ones from the shops. Used equipment is effectively lower in price saving some money.
Materials and Supplies
In this area, a lot of money can be saved. Planners should decide in advance what they want to buy. They should also seek quotations from different suppliers to obtain the most favorable prices. Negotiation of prices with the suppliers is also allowed to enable planners to get goods at cheaper prices. With these strategies, the cost is effectively reduced without compromising on quality.
Conclusion
For an event to be successful, resources like time and money are paramount. The amount budgeted for in most cases need to be exhausted in the best way possible; getting value for money. Planners always need to have an idea of where to obtain their goods at lower prices. Purchases should be made earlier to avoid last minute rushes and give room for replacements in case need be. Preparation of the venue, ensuring all items are in place is very vital; it provides event planners room to make the necessary corrections before the event begins. Early preparations generally increase the chances of success of the event which is beneficial for both guests and hosts. During planning, the planners should strive to use fewer days in their preparations. The daily activities involved usually attract hidden costs; thus, with more days for planning, more money will be consumed unknowingly. More keenness should also be employed so that the event can be within the budget allocated. Most budgets usually have exaggerated prices thus, with cost-effective measures, some money ought to be saved at the end. Proper budget planning makes work easier for planners and hosts giving them success at the end (Reddy et al., 2015).
References
Cao Bich, L. (2017). Improving customer experience in New Co Yritys Helsinki’s events through service design.
Reddy, V. Y., Akehurst, R. L., Armstrong, S. O., Amorosi, S. L., Beard, S. M., " Holmes, D. R. (2015). Time to cost-effectiveness following stroke reduction strategies in AF: warfarin versus NOACs versus LAA closure. Journal of the American College of Cardiology, 66(24), 2728-2739.
