How can a small business compete with 5 star hotels to use our Audio Visual business?
We are Audio Visual service provider company. We provide AV, sound, lights and more for conferences and wedding events in 5 star hotels in our city. All hotels demand high commissions which we can't afford to pay. We want to continue to run our business by direct clientele.
How can we, as a small company, get our bread n butter from these giants? We have a company website and social media pages. We have full in-house inventory, we don't want to pay high commissions and are begging for business to these hotels. There are about 10 big hotels in our city. We want to serve direct guests for reasonable prices.
It is rather very easy to conduct business with those companies where commission is rampant. Why you pay commission from your pocket? Develop contact with right person settle commission percentage, add it to your cost. Pay commission after receipt of your payment.
I doubt that it is easy to do business with these hotels, or you would already be doing so.
Unless the hotels will not allow client to bring in their own service providers, a better option should be your developing a series of strategic alliances designed to dea directly with the client.
This would entail your seeking "leads" from other providers serving the same clientele, and returning something of value to the non competing provider such as florist, bands, etc.
The hotels presumably want identical commission rates from all 3rd party AV contractors; therefore in reality you have no service cost disadvantage. Simply load your quotes to cover the hotel commission (as everyone else has to). Make sure that the hotels commission is paid promptly (from your project deposit), as quick settlement may gain you an advantage when you later attempt to negotiate a reduced commission percentage to help make you more price competitive.
you need to change your tactics and get remuneration from each hotel venue you rent instead of to pay commissions to these venue owners , to act so you should be able to organize complete event services ( from bus transfer to dessert choosing ), not just AV, in this case you would bring clients to hotels not hotels allow you to serve on their territory