💵 Is DMC Pricing Fair?

How successful planners are navigating DMC costs

The Stand-Up December 17, 2024 Edited by Miguel Neves View in browser Hi there,   The age-old tension between planners and DMCs over pricing continues, but there's more to the story than meets the eye. While planners feel the sting of markups, DMCs navigate a complex business reality.   Between substantial insurance premiums, rising labor costs, and basic operational expenses, DMCs typically need 15-20% to keep the lights on. Add a modest profit margin of 8-10%, and you're looking at the bare minimum needed to sustain operations.   The good news is that pricing models are as varied as the destinations they serve. From package deals to cost-plus arrangements, DMCs are getting creative with their pricing structures. Some even mix and match models within a single proposal to meet client needs.   Smart planners are winning at this game by: Starting with a clear budget Building long-term partnerships with select DMCs Understanding local labor costs Getting savvy about national vendor relationships The bottom line? True destination expertise comes at a price, but it's an investment in local knowledge, relationship management, and operational excellence. The most successful partnerships happen when both sides understand each other's realities.   What's your take? How do you navigate DMC pricing discussions? What creative solutions have you found? Just hit reply to share your stories with us. Top Stories Is DMC Pricing Fair? 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