Hard Costs
Fixed event expenses that must be paid regardless of attendance, like venue rental and AV.
Definition
Hard costs are fixed event expenses that don't change based on attendance. These include venue rental, AV equipment, entertainment fees, and decor installation. Hard costs are committed early and must be paid regardless of turnout.
Hard costs contrast with soft costs (per-person expenses like catering) that scale with attendance. Understanding this split helps manage financial risk.
Why It Matters
Hard costs determine minimum financial commitment and break-even calculations. High hard costs increase risk if attendance falls short.
Balancing hard and soft costs helps manage event financial exposure.
Examples in Practice
A $50,000 event with $20,000 hard costs (venue, AV) and $30,000 soft costs (F&B, swag).
Negotiating lower hard costs in exchange for higher per-person guarantees.
Hard cost commitments made months before events when attendance is uncertain.