Hotel and Venue managers/owners can take three main approaches to develop their market:
1. Sales Representation (eg: Fusion)
- constant sales representation over a long period of time
- in-depth market knowledge and experience
- established sales tools and techniques
- established database and marketing tools eg: website, newsletter, social media channels
- no training requirements – sales representation already in market
- cost – split across clients this can be a highly cost effective way to drive results
- clients can balance the right offering to match their event needs
- do not have exclusive rights to an individual single dedicated salesperson
- allocated ‘paid for’ time needs to be spent on areas of value
2. In-Market Sales (local employee)
- exclusive dedicated presence in market
- can control an employee’s activity more easily
- salary costs for an experienced and knowledgeable employee is high
- infrastructure costs – need to pay for all expenses (cannot be shared)
- training & marketing tool development
- Individual sales managers can feel isolated and de-motivated working solo
- database development –often from scratch
3. On-Site Sales (from your hotel/venue)
- low cost
- no market presence
- Multiple States results in split attention to different markets
- Turnover in sales roles result in lack of continuity for clients and lost opportunities
- relationships cannot be effectively developed and nurtured
- out of sight, out of mind – not on the client’s consideration set
- cannot attend important and immediate client meetings easily
- lower revenue returns than local representation
- lack of trust (nothing beats face-to-face contact and human nature is to prefer working with local account managers)
So how do I choose?
Sales success is about relationships, trust and having a constant in-market presence. All experienced industry operators implicity know it is impossible for on-site sales to deliver the best results. Put yourself in our client’s shoes, wouldn’t you also want a local account manager? Simply, you have to ‘fish where the fish are’.
So that leaves sales representation versus a local employee. Both can work. But the reality is that an investment in an employee with the right market knowledge and experience is at a far higher cost than sales representation. We can provide you with the sums so you can make a balanced comparison.
You may be weighing up your approach right now. It might be time to contact Mary-Jane for a discussion as to the best path forward for your business.