Other companies are making operational changes to cut budgets and keep their employees. At Atlanta-based A Legendary Event, Creative Director Steve Welsh reports that managers were recently asked how, if they owned the company, they would cut costs without shortchanging quality. “Some suggested that we can reduce our courier bills by hand-delivering proposals or bills to clients or by offering them the opportunity to stop by for a tasting of some of the chef's recent recipes — both of which give us valuable face-time with the customer,” he says. “Our executive chef was able to cut his overall food budget by 20 percent simply by calling his vendors and negotiating a better deal. By issuing paychecks every two weeks, we are saving over 50 percent of the cost of weekly checks! Many were so thankful to be included that they vowed to find ways to cut budgets in every department and to do whatever it takes to get through this.”

And for those who are willing to look for them, the opportunities are still there, says Global Events Partners' White. “In our New York office, we have a woman who just turned 70 who is known for being the best in New York at what she does,” he says. “She just lost several accounts, and now she is making cold calls to people and having lunches four or five days a week with potential new clients. At 70, she is going back to doing what she did 25 years ago.”

Forecast for '09: Uncertainty

Another result of the down economy: shorter booking cycles, making forecasting for 2009 virtually impossible. For example, White recently had a client in Nashville call in on a Tuesday for an event that was coming into town the next day. “And this was a major piece of business with off-site events and dine-arounds.”

While the unexpected business is a plus, the inability to forecast through 2009 may translate to some suppliers going belly up. “I think some of the smaller DMC operations are not going to make it,” he predicts. “These are the ones that generally don't plan ahead very well and live on the edge with very close margins. I think we are going to see some of these three- or four-person operations fold this year.”

The Key Event Group's Hershiser says her company has gone from forecasting every six months to assessing the business on a quarterly basis. “Our customers are buying short-term, and we don't have a solid idea of how 2009 is going to shape up the way we did last year at this time.”

Some of her 2009 proposals have been out to customers for the past three to six months with no sign of action. “They're afraid to commit. They say they are doing the program but [it doesn't mean much] unless a contract is signed. We have a lot of leads. It's more a matter of what is going forward and what is not.”

On the supplier side, everyone agrees that 2009 is going to be a survival year. Says Campos: “Like us, most production companies are just trying to protect what [they] have. It's going to take a huge effort to keep what you have booked. We'll likely be in survival mode until possibly 2010 — and I'm really an optimistic person.”

Sidebar: Hotels Lighten Up

With so many hotels hit hard with cancellations, many independents are finding them more flexible about attrition. When Hannah Greenberg, CMP, director of conference services at Meeting Mavericks, a meeting planning company in Cherry Hill, N.J., saw attendance at an event in the Bahamas drop from 100 attendees to 22, the hotel was willing to waive all attrition penalties once she agreed to hold the event there again for the next two years.

It wasn't an easy sell, she says, but because she brings a lot of business to the property throughout the year, the hotel was willing to negotiate. “I really had to work hard to prove my case and go up the chain [of command] to the executive office.”

It was a good business decision by the hotel, says David Richardson, president and CEO of Memorable Meetings, an event planning company in Charleston, S.C. “The ones that are really willing to partner together to do business are going to survive this [recession].”

Richardson is going back to properties to renegotiate contracts for his clients for meetings that are already on the books. “As a third party, I have clients who do not want to cancel, but it is not economically feasible for them to have the meeting. It's a question of asking a property what can be done to keep the meeting from canceling, whether that be postponing cancellation fees, reducing room rates, or renegotiating attrition clauses. He also often enlists the hotel's general manager in these sit-downs to discuss how they can offset certain costs in order to keep the business.

It's never too early, he says, to “use the relationships you have with national chains and proactively go to them to ask for help.”

Sidebar: Positive Imagery

With all the doom and gloom out there, David Richardson, president and CEO of Memorable Meetings, Charleston, S.C., wants to make sure his employees start their days off feeling positive. As part of a teambuilding activity, employees are wallpapering the entire reception area with a collage of positive expressions, happy photos, and fun words and thoughts.

“It's a silly thing we are all doing together as a ‘psychological shift,’” says Richardson. “There is so much negative thinking in the world right now, we decided we wanted to paste something on the walls that is uplifting and fun.” Richardson says the collage, which employees began creating around the holiday season and will continue to evolve throughout the year, is meant to bring employees together.

“The more you think positively, the more you will be able to see happiness and joy in all things.”

Sidebar: Mind Shift

Tips for Suppliers on Rethinking the Recession from James Feldman of Shift Happens!

1. Stop pointing fingers. It's not the airlines' fault. It's not hotel's fault. We're all in this together and everyone is in the same boat. There is enough negativity out there already. Why add to it?

2. Elevate your attitude. Sure, it's easier said than done, but going around with a “woe is me” outlook guarantees you are not going to be in the right frame of mind to come up with effective solutions. “This is the biggest piece of advice I would give anyone,” says Feldman. “You have to make sure you have a clear mind-set so you can help your customers find confidence.”

3. Accurately identify the problem. What are your customers' real pain points? Is it that they can't hold any incentives at all in 2009? Is it that room rates at the hotel are too high? Or are they just looking to hold a meeting on a severely reduced budget? “I think if you go back to the customer and ask, ‘What would it take?’ you will get some very informative answers.”

4. Partner, partner, partner. Do you need to offer customers a cheaper transportation alternative? Maybe a partnership with a cab company could help.

5. Tune in, not out. Blogs, e-newsletters, social networking sites, and the like should not take a back seat when business is down. Use these forums to make introductions to new partners and customers, and have those in your network refer you to colleagues in their own circles.

James Feldman, CITE, CPIM, CPT, MIP, is a meeting industry consultant and speaker. www.shifthappens.com

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