Event Centres in Lagos: 5 Tips to Sustain Profitability.

Event Centres are regarded by most as one of the lucrative businesses in Nigeria. The business to some, is a money spinner. These venues are built for the purpose of hosting corporate events, award ceremonies, and other social events such as weddings, anniversaries, etc.  They are often leased on a daily or hourly basis.

As far as one can see, an event centre seems like a profitable business venture. However, it is keenly observed that the business struggles in sustaining profitability long term. We often notice that when an event center commences, there is a lot of hype and buzz about the ambiance and everyone wants to host an event in the location. However, a few years down the line, the buzz dwindles and sales begins to drop. Why?

The answer is not far fetched – Poor-Quality Product Experience.  You may wonder, how does product experience affect the success of an event centre?  Well, let us examine this together.

Product Experience (PX) simply refers to what a customer experiences when using a product. According to IGI Global, it is the psychological effects elicited by an interaction with a product. UserGuiding.com also explains it as the perception the customer has when they start using a product 

Bringing this home to the subject matter, we know that the physical structure of an event centre is its product. This includes the hall, training room, meeting room with other relevant amenities. These are the products that the customer pays for. When these products fail to satisfy the customer, the result is a poor-quality product experience. Conversely, a good-quality product experience gives birth to great reviews and more customers. How then, can you ensure good product experience in an event space?

Here are top 5 tips on how to position an event centre for success through good-quality product experience.

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#Tip 1: Invest in Facility Maintenance

Maintenance is the difference between the durability and the transience of an object. It is that which determines lastingness as well as the cost of repairs. In fact, everything on earth requires maintenance for proper functioning and endurance. Therefore, a facility not well maintained tends to deteriorate fast and loses its appeal. It automatically fails to attract new customers. 

Imagine this scenario: A group of potential clients visits your facility for a tour. They are looking to host a major event and your event centre has been shortlisted. During the tour, however, they noticed the paints on the walls are peeling off, the tables and chairs are scarred, the tiles are cracked. They begin to analyze how much it will cost to uplift the space should they opt for your venue. This causes a great deal of concern and they immediately start thinking of other options. They left and you didn’t hear from them again. You have lost a potential client who could have given you more future businesses. You can prevent this incident from happening if you do the following:

  • Be prompt about fixing things – When you notice a malfunction, fix promptly as delaying will worsen the problem and cost you more. Needless to mention the impact on your service quality. 
  • Be quick about touching up – Paint the walls as often as necessary, fix tables and chairs as soon as you can but if doing this immediately is a challenge, then ensure the worn out things are separated and kept aside. 
  • Imbibe a maintenance culture – Everyone should learn how to properly maintain things around them such as the tables, chairs, walls etc. Reports reveal that the major cause for wear and tear is carelessness in maintenance.

#Tip 2: Provide Event Support

An event center without event support is like a house without furniture. The house will be habitable no doubt, but it cannot be said to be complete. Similarly, not providing needed support to your clients does not create a great experience. A client books an event hall and afterwards is forced to hire a team to help with a simple setup as the centre does not provide this. Providing support before and during events will save your customers a lot of stress and money. These supports include, arranging the seats, welcoming guests, offering direction to guests etc. Doing this will help in winning the hearts of both new and existing customers.

#Tip 3: Provide Catering Service

Catering is a prerequisite in most events if not all. Most event organizers therefore, would require meals to be served to their guests. Event spaces can take advantage of this need to ensure that the option of meal provision is open and available to the client. Hold on though! How can event centers provide meals and beverages when most are not built with the capacity to offer this?  Most event centres do not have a kitchen nor a restaurant. However, such venues can partner with food vendors or event caterers to provide meals. A contract should be drawn up with these vendors and due diligence must be conducted to ascertain the quality of meals. This is highly imperative for the safety of the guests. 

In addition to improving product experience, a catering service also creates additional sources of revenue for you. For example, if the meal is priced at NGN 6,500, you may negotiate to pay the caterer 80% and keep 20%. Better still, you can hire the services of a cost controller to work out the numbers.

#Tip 4: Maintain High Standard of Cleanliness

How clean and neat is your facility? The most attractive space on earth can look like a slum if left dingy and dirty. Lack of proper cleaning gives room to all sorts of messiness such as an unhealthy environment, influx of pests and rodents just to name a few. Poor cleaning culture eliminates a beautiful ambiance and devalues the product quality. This might explain why some facilities look shabbily barely a few years after being built.

#Tip 5: Create Processes for Damage Control

Implement a process for damage control so your facility stays functional to your guests. Do not leave event halls and the equipment therein to be accessed by every Tom, Dick and Harry. There should be a dedicated person or a team that can reach when help is needed to access air conditioners, audiovisuals, and light or sound systems. Protect the space from improper use. Customers should be sensitized to always call for help to avoid mishandling or equipment hazards. Contracts should enforce the do’s and don’ts before and during customers events. Where there is a default to the terms and conditions by the customer, the customer pays a fine. You can easily do this via security deposits.

Thus far, we have diagnosed the reason why event centres struggle to stay afloat a few years into the business. We have also seen how product experience affects the business and what must be done to avoid poor-quality product experience. Be sure to always reference this article for these tips.

Click on this link if you need help in choosing a suitable event space for your corporate event. 

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Event centres in Lagos

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