DMCP Practice Exam Review Questions with
Verified Correct Answers
What pricing model does procurement not like
Package Pricing
What pricing model does procurement prefer
Cost Plus (according to study sesh, book says it varies depending on client)
Procurement
Process of sourcing and purchasing goods and services for use in a business
Time is money
Value proposition for a DMC dealing with procurement
Markup always
Multiples
Margin always
Divides
Definition of Package Pricing
Bundled services offered to the client at a fixed price. Packages the price of multiple services,
suppliers, and staff together with an inclusive fee that covers direct and indirect program
costs and profit.
Package pricing is most commonly used for these types of events
City tours
, Pros of Package Pricing
DMC guarantees delivery for price quoted & DMC absorbs risk of any
errors/omissions/changes
Cons of Package Pricing
Client has no control over line items, perception of overpaying, not preferred by procurement
professionals, client does not have control over line items
Definition of Menu Pricing
Itemized list of fees for goods and services
Fixed expense
Expense incurred regardless of the number of event attendees
Variable expense examples
Number of participants, f&b, centerpieces, and linens
Menu pricing is most commonly used for these types of events
Themed or special events
Pros of Menu Pricing
DMC guarantees delivery for price quoted, allows for client customization, DMC absorbs
risks of errors/omissions/changes
Cons of Menu Pricing
Some fixed costs must be included and does not maximize buying power, labor & delivery
difficult to calculate until final decisions, & difficult to display total event cost in initial
presentation
Verified Correct Answers
What pricing model does procurement not like
Package Pricing
What pricing model does procurement prefer
Cost Plus (according to study sesh, book says it varies depending on client)
Procurement
Process of sourcing and purchasing goods and services for use in a business
Time is money
Value proposition for a DMC dealing with procurement
Markup always
Multiples
Margin always
Divides
Definition of Package Pricing
Bundled services offered to the client at a fixed price. Packages the price of multiple services,
suppliers, and staff together with an inclusive fee that covers direct and indirect program
costs and profit.
Package pricing is most commonly used for these types of events
City tours
, Pros of Package Pricing
DMC guarantees delivery for price quoted & DMC absorbs risk of any
errors/omissions/changes
Cons of Package Pricing
Client has no control over line items, perception of overpaying, not preferred by procurement
professionals, client does not have control over line items
Definition of Menu Pricing
Itemized list of fees for goods and services
Fixed expense
Expense incurred regardless of the number of event attendees
Variable expense examples
Number of participants, f&b, centerpieces, and linens
Menu pricing is most commonly used for these types of events
Themed or special events
Pros of Menu Pricing
DMC guarantees delivery for price quoted, allows for client customization, DMC absorbs
risks of errors/omissions/changes
Cons of Menu Pricing
Some fixed costs must be included and does not maximize buying power, labor & delivery
difficult to calculate until final decisions, & difficult to display total event cost in initial
presentation
