Brian Monahan and Paul Ramstetter present at the IAVM Region 2 and 3 Conference.
REPORTING FROM CINCINNATI — “Technology will fail,” said Brian Monahan, national sales manager for Prestige AV & Creative Services. “I like to start there, because if you don’t believe that, you’re going to have a bad day.”
He and Paul Ramstetter, director of audio visual service at Duke Energy Convention Center here, went on to make the case that venues should charge clients for audio-visual services in order to offset the inevitable cost of upgrades, at the very least. The two spoke on the “risky business” of managing audio and visual technology during the May 23 IAVM Region 2 & 3 Conference in Cincinnati.
Monahan also said he sees a future in which local providers will take over much of the business of AV technology, since national contracts and consolidations have become more expensive and fee-based.
To start, Monahan shared that letting go of the illusion of perfect systems has been an essential part of finding success in the field. After losing sleep for the first 10 years of his career, Monahan came to accept that it was “part of the business” and took steps in figuring out how to anticipate mistakes.
One of the major themes of the presentation as a whole was the need for facilities to charge their clients for the use of AV equipment. According to Ramstetter, “Every building that embraces this idea of being able to charge for these services and generate revenue off of them is in a much better position as far as picking up shows and serving clients.”
One case study, a boutique banquet facility owned by a city organization, had no independent control of the AV systems at the site, Monahan said. Operations ran into trouble within a few months of opening.
“This is one of the points where facilities think that AV is free and doesn’t cost you anything,” Monahan said. “However, once you start supporting it, you’re stuck with it.” The potential for falling behind current technology can let down the client, which made a great case, he said, for making sure that operating companies are knowledgeable of a venue’s RFPs so that expectations can be fulfilled.
The next case study was a midsize convention hotel, which had a smaller-sized vendor bring in AV technology. The vendor was unable to meet the expectations of large clients that came to the site, like Coca-Cola. There was also no revenue associated with the facility’s AV features, which hit hard when they had to be replaced after 10 years.
“Eventually that technology meets its day,” Monahan said. Having an AV charge built in to recoup revenue for a “rainy-day fund,” according to him, is essential for the upgrades that are always going to be needed eventually.
The last case study in facility integration, concerning a large resort convention hotel, hit this point home especially well. With 39 meeting rooms equipped with AV technology and no revenue model, Monahan said the facility is facing a $2-3 million upgrade in the near future.
“How do you bear that cost when you have not been charging, when you have been using it as a loss leader on booking groups?” Monahan asked. “Eventually somebody is going to pay for it.”
While some sites will have a working AV staff at all times, Monahan said that this does not necessarily push the technology or potential revenue for the facility. Since their priority is functionality, Monahan said, “You need someone in the driver’s seat for the revenue side of things.”
A church event center that wanted to host social galas, business meetings, and music events was the first production partner case study to be presented. The church bought a significant quantity of expensive music equipment but, even though they brought in a healthy amount of corporate events and weddings, the site was caught with an investment that hardly ever saw use.
“I say, until you know your business model, don’t overinvest,” Monahan said. “Be strategic about your investment.” He said he and the church worked out a business model where he rented the equipment from the venue and would be paid a commission for the business he brought to the facility. The church was hesitant at first, so Monahan suggested they try it out for six months.
“We’re only a couple of months into the program,” said Monahan, “and we are probably going to pay off their system in the next six months.”
He reiterated the point that charging for AV technology is the best way for venues to go about renting to clients.
“That’s one of the challenges facilities get into,” Monahan said. “They think that free AV is what people want. They don’t want free AV. They want events that work. So as you are making your plans for your technology investments in your facilities, how can you make something that works, not just something that is cheap, cool or neat? Because if it doesn’t work for a client, it doesn’t work.”
Next, Ramstetter and Monahan looked at a private event center that generated revenue from AV equipment it rented out. The operations manager did not go with a preferred partner, and when the manager left the facility the clients could not use the facility the way they wanted, emphasizing the importance of clarity when it comes to business relationships.
Duke Energy Convention Center has a contracted AV partner. Prestige is integrated with the operations staff, event managers, and sales team, according to Ramstetter. He praised the multitiered relationship, saying that, “Our relationship is such that we are taking care of the building as if we work for the building.”
Monahan agreed, adding that, “We think this model of having a contracted AV partner can create other benefits in marketing dollars and marketing investments.”
“When it comes down to it, it’s all about relationships,” Ramstetter said. After fostering relationships with nonprofits and businesses, the results have been beneficial for everyone.
“They love coming here for the building, and they also love coming here for us,” said Ramstetter, “and they think of the AV supplier, building management and the building as one big team because that’s how we operate.”
Interviewed for this story: Brian Monahan, (513) 641-1600; Paul Ramstetter, (513) 419-7301