The Outside Supplier Fee

Some venues charge a percentage of the whole event for bringing in your own AV supplier, and planners are losing clients over it.

Some venues charge a fee when you bring your own AV company, and a few set it as a share of the whole event. This guide explains why venues make these rules and how to tell a fair cost from a penalty. It also gives you the questions to ask at enquiry, the clauses to cap and a way to compare venues with the fee included.

An outside supplier fee is what some venues charge when you bring your own AV company instead of theirs. Some of these fees are fair charges for power or rigging. Others are a share of the whole event.

This guide explains why venues set these rules and how to tell a cost from a penalty. It also shows how to find and cap the fee before you sign.

Ten percent of everything

Some venues set the fee as a share of the whole event, not of the AV. Say the contract asks for 10% of the total event value whenever you bring in an outside AV supplier.

A fee on the total is not a charge for AV. It lands on the food, the rooms and the decor too. On a made-up $200,000 event, it is $20,000 before any AV work starts.

Why venues set supplier rules

The rules are not always greed. Venues have real reasons, and knowing them helps you bargain.

Rigging points, power and the house sound system belong to the building. Someone has to check that an outside crew hangs weight safely and plugs in correctly. Outside crews also bring risk. A scratched floor or a tripped circuit becomes the venue's problem.

Many venues also have a deal with an in-house AV partner that pays the venue a share of its sales. When you bring your own supplier, that share is lost. The fee is often how the venue gets it back.

Each reason points to a cost the venue can name. That is the test to use.

Cost recovery or penalty

A fee that recovers a cost follows the cost. It is charged per rigging point, per power drop or per hour of a house technician. A penalty follows something else, such as your food bill or the total contract.

• Rigging. Usually tied to: Each point used, with the venue's rigger. Reads as: Cost recovery. What to ask: The rate card, and how many points your plan needs.
• Power. Usually tied to: Each drop or circuit. Reads as: Cost recovery. What to ask: Who supplies the distribution, and the rate per drop.
• Patch fee. Usually tied to: Each tie-in to the house sound system. Reads as: Cost recovery. What to ask: Whether you need the house system at all.
• Liaison. Usually tied to: Hours of a house technician. Reads as: Cost recovery, if the hours match your crew's. What to ask: The hours, the rate and a cap.
• Outside supplier fee. Usually tied to: A percentage of AV or of the whole event. Reads as: Penalty, unless explained. What to ask: What cost it covers, and a fixed cap.

Rigging, power and liaison already show up as house fees inside an itemized AV quote. When an outside supplier fee is added on top of them, ask what cost is left for it to cover.

Ask at enquiry, not at contract

The fee is easiest to move before the venue knows it has your booking. Ask in the first email, next to the date and the room rate.

1. Do you have an exclusive or preferred AV supplier?
2. Can we bring our own, and what fees apply if we do?
3. Is any fee a percentage, and a percentage of what?
4. Which services must stay in-house, such as rigging or power?
5. Can you send the rate card for rigging, power and house technicians?
6. Are other suppliers exclusive too, such as catering, florists or security?

Get the answers in writing. A venue that will not answer before the contract is telling you how the contract will read.

Clauses to cap or strike

When the contract arrives, read the supplier section first. These changes are worth asking for.

Strike any fee set as a percentage of the total event. If the venue will not strike it, ask that it apply to AV spend only, with a fixed cap in money. Ask for the rate card to be attached to the contract, so the fees cannot rise later.

Ask for the fee to be waived if the in-house team cannot supply what your show needs. That could be a certain screen or a crew on a set date. Ask that house technicians be billed for the hours your own crew is in the room, not for full days by default.

A lawyer should check the final wording. Raising the points is still your job.

Compare venues with the outside supplier fee included

A cheaper room can cost more once the fee is in. Compare venues on the total, with your own AV supplier priced in. The figures below are made up.

• Room hire. Venue A: $20,000. Venue B: $28,000.
• Food and drink. Venue A: $60,000. Venue B: $60,000.
• AV from your own supplier. Venue A: $40,000. Venue B: $40,000.
• House rigging and power. Venue A: $4,000. Venue B: $5,000.
• Outside supplier fee. Venue A: 10% of the total, $12,400. Venue B: None.
• Total. Venue A: $136,400. Venue B: $133,000.

Venue A looked $8,000 cheaper on room hire. With the fee, it costs $3,400 more. The fee is one line in the full sheet for comparing venue costs.

If the in-house team is good and fairly priced, it can be the best choice. The point is to choose with the full number in front of you, and to tell your client why.

Tell the client first

A fee like this can cost a planner the client, not just the money. Put the supplier rules in your first venue summary, so the client sees them before they fall for a room.

Frequently asked questions

Why do venues charge an outside AV fee?

To cover the cost of an outside crew using the building. That can include a house technician to supervise, power, rigging and the risk of damage. Some venues also earn a share of sales from their in-house AV partner, and the fee replaces part of it.

Is an outside supplier fee negotiable?

Often, if you ask before you sign. Ask for a fixed cap, for the fee to apply to AV spend only, and for a waiver if the in-house team cannot supply what you need. Once the contract is signed, there is little room left.

What is a patch fee?

A patch fee is a charge for connecting an outside sound system to the venue's own house audio. It pays for the house technician's time and the use of the system. If your supplier brings a complete system and does not need the house speakers, ask to drop it.

How do I compare venues that have exclusive suppliers?

Price each venue with your own AV supplier included, then add every house fee and any outside supplier fee. Compare the totals, not the room hire. A cheaper room can become the costlier venue once a percentage fee is added to the whole bill.

House fees follow the plan, from rigging points to power drops. Monet makes a to-scale layout from the venue plan in minutes, so you can show each venue where your stage and screens go and ask for a real number before you sign.