Costs for materials seem to be escalating all around us. Some industries are experiencing more of this than others. As an association director, I am responsible for large meetings and events. This includes golf tournaments, conventions and seminars, and these costs seem to be skyrocketing, as well. For example, I recently reviewed a food and beverage contract for an event coming up for about 200 people. I already knew that soda at this event was going to run about $6 per can, with set-up costs for the bar totaling about $400, and server rates totaling more than $1,800. I understand this and it was expected.
What was not expected was what I saw next. A “service fee" of $1,100. A service fee? For $1,100? When I am already paying for the servers and bartenders? I guess the hotel thought that servers get paid for standing around and not serving and if we wanted to actually be served we need to pay extra for them to do the “serving” portion of the contract. They also added a gratuity of $400. I bet contractors wish they had this type of contract.