Wired for Profit: How Electrical Markups Drain Event Budgets

Posted on: January 29, 2025

Do corporate event venues exhibit a tendency to inflate power costs? The short answer: some can and some do transmit electrical markups. 

It’s not unknown for corporate venues to charge hefty fees for electricity. This possibility can catch event planners off guard. 

Power is often viewed as a venue profit center. Inflated charges for electricity usage enhances revenue streams, particularly in competitive markets.

Because power costs could — and can — become a significant expense, it’s crucial for event planners and their event production partner to have strategies in place to make sure electrical markups don’t trigger a budget surge. 

Here’s how you can avoid overspending on power for your next event.

Plan and Estimate Accurately

Yes, along with everything else, you’ll have to plan for this as well. Reach out to your production partners early in the process and specifically ask to get estimates of their power requirements. 

Rely on them to assess power needs for events like yours in size and type. They can help you optimize power usage, avoid overestimating, and ensure all safety regulations are met.

Understand and Negotiate Venue Policies

Power fee structures can vary between venues. Some include basic room power in the rental fee, while others charge by outlet or meter exact usage. 

Always ask for a written estimate of potential power charges before finalizing contracts. This helps avoid surprise fees after the event. And if you are holding a big event with blocks of rooms, food and beverage, those are points of negotiation that can reduce and possibly eliminate power charges.

Choose Energy-Efficient Equipment

If you’ve been in the event industry for a while, you’ve likely noticed that equipment has gotten smaller and more compact. A reputable and experienced production company will use newer and more capable equipment that is more power efficient.

Opting for power-thrifty equipment, including LED lighting and laser projectors, can lower the amperage you’ll need from 200 to 100. Such energy-efficient technologies not only reduce your overall power consumption but also aligns with growing expectations for sustainable event practices.

While every corporate event venue may not overcharge for power, there is a notable trend of inflated pricing and hidden fees associated with electricity usage. Careful planning and negotiation can reduce or eliminate potential shocks for your next event.