Budget Inflation? Let’s talk about it!

For some time now, event organizers have been playing at being contortionists by managing outdated budget proposals. So we’ve reached the point where, and with all our love… this can’t go on any longer!
Reading time
3 min
Written by
Manon Blache Veschi

Budget Inflation? Let’s talk about it!

For some time now, event organizers have been playing at being contortionists by managing outdated budget proposals. So we’ve reached the point where, and with all our love… this can’t go on any longer!
Reading time
3 min
Written by
Manon Blache Veschi

Budget Inflation? Let’s talk about it!

For some time now, event organizers have been playing at being contortionists by managing outdated budget proposals. So we’ve reached the point where, and with all our love… this can’t go on any longer!
Reading time
3 min
Written by
Manon Blache Veschi

If, like us, you read the news;

If, like us, you hold your breath before grocery shopping;

If, like us, you take the rise in labour prices into account…

…And tutti quanti!
Basically, you understand that nobody can work miracles with leftovers from the back of the fridge, and that we must now account for inflation when budgeting events because it is no longer true that we can be delivered the moon on budgets that have not taken all these new realities into account.

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Faced with soaring fuel prices, labour shortages, and supply issues of all kinds, providers are now being forced to increase their own prices in order to ensure quality of service. Suppliers have been working hard for months on end to meet the growing demand for in-person events, even after the damage wrought by the pandemic. Production capacity (missing pieces, delivery times, etc.) has slowed, which has impacted supply chains. Aspects relating to décor, audio & video, and other sectors required for your events are all strongly feeling the “boomerang” effect of 2022 compared with 2019.

On the other side of the Atlantic, it’s the same deal! “The conclusion is irrefutable: on average, organizing a trade show or event costs 45% more in 2022 than it did in 2019” according to a study by the R.I.F.E.L. Institute. Well, this issue is clearly not only affecting Quebec. The study carried out by R.I.F.E.L., which is currently headquartered in Germany, tells us that the event industry is being “disproportionately affected by current cost increases.” What portrait does this paint for us? Well, for a 250-person event… We get a 58% increase. Yes, yes, you can read the report yourself – we also grind our teeth whenever we see these figures!

We have always developed our event concepts around the impetus of corporate outreach. Events are a communication tool in their own right, so it’s important to consider this inflation for your own deployment. Both strategically and creatively, events always make the difference when it comes to expanding the reputation of your company, your brand, your initiatives (fundraising, award ceremonies, etc.). Trying to speak louder than everyone else without first having the correct window onto reality can ruin an event, and it is for this very reason that we are now addressing you with an open heart.

And, since a picture is worth a thousand words, here’s a little help navigating through the “world after.”

Knocking on the doors of all our suppliers, all sectors combined, this is the current state of affairs, and it’s FRIGHTENING!

 

 

This general cost increase is having an obvious impact on the prices of all the usual resources required for your events, and this is why our team recommends updating our budgetary packages so as to avoid compromising the quality of your major projects.

With all the goodwill of the Lulu team

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