Interesting thought — being all out of free — isn't it?

On an average day, I have at least three people ask for something from my company and not want to pay for it. They are either a charity/nonprofit organization or someone shopping for a better deal than the one that they received from one of my good friends and competitors.

The other day I was trying to think of the last time that I got something for free or at a discount. When I go to the grocery store, I have to pay the price that they ask or not get anything. What about the doctor or dentist — would you ever think of asking them not to charge you for your next visit? Accountant … discount? Free? Are you kidding?

The event industry has trained its clients to believe that asking for something to be discounted or given to them is common practice.

Hotels are expected to throw in comp rooms, valet parking, sometimes even a bar and food, and when they have thrown everything in that they possibly can, they are asked for auction items.

Caterers are not exempt from the “free” syndrome. And rental companies are expected just to throw it in because “You have it in your warehouse.”

Clients come in and say, “My budget is only $2,500 — but it needs to look like I spent $10,000 because my guests expect it to be fabulous.”

WHAT GIVES?

We all can create magic, but let's be realistic. When we lower our pricing standards, it is just a given that the quality of our inventory will soon follow suit. Everyone in the event industry is expected to give, and yet we are treated as though we are doing something wrong when we decline.

We need to get busy and turn this industry around. Each one of us should create a budget for advertising and marketing. Do jobs for industry people, and let them know why we are doing it: It is to get business. We are going after Return on Investment — ROI. Why would we ever give our products away or offer them at sizable discounts if we were not expecting to have a return on that investment?

Pick a charity that you want to support or that one of your loyal clients supports and do something for them. Do something for your customers who are loyal — that is whom we need to be giving to. Rewarding clients for their loyalty is far better than trying to get a new client by establishing a habit of their getting something from you for nothing. If someone asks you for a discount or a donation, ask them for something in return.

With a charity, ask for sponsorship-level recognition in programs, invitations and media coverage, along with a sponsor table at the gala. Ask them to recognize your contribution from the stage that evening.

Let's start making sure that our advertising and marketing efforts are paying off and bringing in more revenue. If “free” has no value, why would you waste your time and resources?

‘FREE’ ISN'T

“Free” costs you — in labor, rent, utilities, transportation, product, licensing, taxes, insurance, association fees and maintenance. I look at my accounts payable and know that I did not run my business for free — it was at an expense that must be countered by my accounts receivable. If accounts receivable are continuously less than my expenses each month, then it is my fault when my business fails. If that happens, then the consumers are the ones left with fewer choices in making that special event so fabulous.

Join me today in adopting a new credo for our industry: I am all out of free, and I'm not making any more.

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Jan Rocco is president of event decor firm Party Props Inc. in Houston. She can be reached at 713/868-5433; www.partypropsinc.com.