Marshall Yard:

Trade show exhibit trends are, like all trends, always changing. The idea of being on the leading edge of a trend is SCARY to most exhibitors. TREND=EXPENSIVE in their minds. Why?

To many trade show attendees, especially those who rarely visit the conventions and expos that we see month in and month out, most of the exhibit booths that they see are impressive - not just the latest and greatest. A friend of mine attended a show this past October and marveled at the cheap rented trusses on the show floor. Yuck! Those are so 1992. But with a jury of amateurs, why should one have such high standards?

I would argue that trendy exhibits need not be expensive. You can have IMPACT at a reasonable budget [and trusses rarely have an IMPACT on those of us who go to more than 1 tradeshow per decade...]. It has everything to do with the business model of the exhibit company, since the physical components are not the largest cost centers involved. Here’s what I mean:

The components involved in a trade show exhibit are only one of the many costs involved in the process. The beams, the fabric, wall panels, the plexiglass- or whatever your exhibit may be made out of -are not as expensive as the designers, graphic artists, engineers/detailers, account managers, and fabricators required to deliver a high quality exhibit to the tradeshow floor. Consider, then, why you would sacrifice on materials, when the cutting edge in styles is only a minor increase in costs. But trends are more than just materials - it’s the designers, stupid.

A busy design team, paired with an engineering, graphics, and overall operation that is geared towards large scale, cutting edge exhibit booths, actually costs less than a low quality, slow design team, error-prone engineers, wasteful graphics, and a sloppily managed overall operation. If paid based on productivity, the trend-following, top-notch-team earns more. But they produce more. It can even be argued that if the sales team sells/leases enough booths, and if operations are run with an efficiency of scale, employees will produce a higher quality product regardless. Quality improves with the busier the team becomes. Trends are easier to introduce when you do so many exhibits. Trends need not be followed because you heard about them, but because you are experimenting amidst a large scale, custom rental exhibit program - i.e. constantly innovating with existing clients.

Trends aren’t expensive. In prosperous, overheated economic times, an exhibit house will raise its prices if demand merits this. In leaner times, when every nickel and dime is squeezed out of any exhibit budget, the busy company is likely the best. Trends included, they may be working at the same price as the less efficient, wastefully under-utilized company. Which sounds like a better value?

This post has been deemed “salesey” (classic overt, self-serving sales pitch that lacks humor and/or self-defecating), but is approved by the Blog Master.

We, on occassion, are pitted against show contractors - National organizations hired by show management to service exhibitors on site. These organizations, however convenient, don’t often offer the same level of design or service as we do.

Don’t get me wrong; you can certainly get what you need from show contractors (and, as an added bonus, reduce or avoid some service costs like shipping and drayage) but if you’re interested in making an impact on the floor, keep your eyes open to differences such as:

Design Preparation: we’ll discuss your marketing objectives, functional requirements, logistical needs and aesthetic preferences before we create your design. The show contractor will likely have you submit an “I need” form and configure the environment based on that.

Onsite Service: The show contractor will inevitabely service 100+ exhibitors throughout the course of the show, which makes personalized service difficult. We typically service 3-5 exhibitors per show…and assign a dedicated Account Manager to each.

Logistics Management: You will work with the same account team no matter how, when or where you exhibit. The show contractor employs different people in each city. So you’ll most likely have to reiterate your concern to several people before it’s resolved.

I thought I did alright in undergrad Economics. I might not have been the absolute brightest, but I am at a total loss in understanding why trade show service prices are skyrocketing for 2009. Trade Show Services primarily include Installation & Dismantle (I&D) of trade show booths; and “drayage,” or material handling; on top of other things like electrical labor, cleaning, lead retrieval, and catering. Not only are rates going up, but exhibitors are being gouged on top of those rates. Let’s get my anecdotal facts out in the open, before honing in on why.

I&D is the carpentry involved in putting together the exhibit. The installers unload the crates that exhibits arrive in, and piece together the booth. These are union contractors who work in a very compressed time frame to build an exhibit from start to finish. They lay carpet, frame structures, provide the finishing touches of graphics and stretching fabric, they place furniture in denoted locations, with electrical channels built into sub flooring or carpet pads. We’ve seen I & D increase by fully 30% in the past six months. It only seems to be getting worse, amidst a real estate crash that is leaving echelons of builders and remodelers out of work.

Drayage is the act of bringing crates that are unloaded at the Marshall Yard to the correct location on the show floor. Drayage is charged at a rate that the show will determine, and you have the option to have the show contractor handle drayage, or perhaps the show contractor can do it instead. To haul 5,100 lbs. of crates with a forklift is going to cost one of my clients $6,344. Last year, their rate for drayage was $95.00 cwt, whereas the 2009 price is quoted at $124.40 cwt - a 31% increase. Since they had a slightly smaller booth in 2009, they have effectively doubled their drayage expense for the show.

Electrical, cleaning, lead retrieval, catering - perhaps exhibitors will catch a break in the ancillary services that they order? Not likely. In fact, electrical labor is starting to be a reliably done on overtime. OT pay is reliably in order in todays trade show environment. Hence, the gouge on top of the the gouge.

So how can trade show services increase in price, while every commodity that is intertwined with providing such services is in decline? Fuel costs have plummetted; unemployment is up, reducing labor costs; and capital expenditures are down, decreasing demand and prices for heavy equipment like fork lifts. In fact, the number and scale of exhibitors is drastically reduced for 2009. So at the most elementary level: DEMAND FOR TRADE SHOW SERVICES IS DOWN.

Any “theories” as to why services aren’t going to be reduced any time soon? They seem to be making up for the decrease in demand by increasing their price, contrary to basic economics. But how can they do that while any other business would go bankrupt in a matter of weeks?

Do words like “Extortion” or “Monopoly” come to mind? This trade show blog is asking.

The Blog Master is a frightening creature known in the trade show blog world for his enthusiasm, his unyielding compassion, and his sharp, unrelenting sword. In fact, my counterpart in Mashall-Yard contributorship-Carney Nacci-has been living in petrified fear of the blog master’s wrath for over five years. She was working in the carnival business, doing unspeakable things for the almightly dollar, before he “liberated” her. In hind sight, her quality of life was superior doing her infamous “candle” trick at whichever county fair. The blog master pushes a cruel bargain, and she only dreams of refusing him.

If I didn’t introduce the Blog Master to our readership, then I don’t think the proletariat would ever understand the tyranical conditions under which our trade show blog is written. This blog has always been, and always will be, the voice of trade show exhibit people speaking out amidst threats of persecution.

Last month I noted that marketing budgets were changing in the economy. Exhibitors needed the flexibility of a rental booth. The Blog Master stormed into my office and chastized me for spreading bad rumors about the economy. Threatened my life, even. He understands now, since he lost precious billions in a recently debunked ponzi scheme.

Just over a week ago, I wrote an article about carpet padding. A commenter dissented. He no longer reads these pages. He no longer READS. The Blog Master is not naive of IP addresses and their utility for destruction.

RSNAs were a popular topic for myself and “Carney” to blog about endlessly. As soon as the show ended, the Blog Master rattled his saber and demanded we cease RSNA topics. Says we need to start talking about other shows. Like NPE, AIIM, CES, AAOS, HIMSS. He possesses a bottomless hunger for trade show acronyms.

The blog master. That is the latest character that I am revealing here on the Marshall Yard. Comment at your own peril. THIS IS NOT A JOKE.

Exhibitor Report published this week (care of Flagg Management) an article about economizing on exhibiting. Interesting - and sad, really - but unfavorable for us.

What’s bothersome is that while they suggest getting the same size space (smart, as something smaller would indicate financial disrupt), they also suggest modular/portable exhibits. These ARE more cost-effective and they DO require less maintenance…but they have very little impact on the show floor. That said, I think going from a custom (or rental) exhibit to a portable would foster the same financial perceptions as would a smaller space. So, perhaps the alternative (lesser of two evils, even) would be to reduce your space and retain your exhibit.

As a mansion with no furniture would be lackluster, so would a huge exhibit space without quality materials to fill it.

Marketing is the first to be sacrificed in a flailing economy. I wonder, though, will making that move perpetuate brand loyalty and advance sales when the economy rights itself? Once upon a time, a certain department store (rhymes with “tears”) stopped marketing and, instead, relied on brand loyalty to maintain sales. The once Largest Retailer in the Nation carried more than 350 brands but most folks didn’t know it…because they stopped marketing.

Now they’re walking on economic eggshells. They were acquired by another retailer and have, quite unfortunately, been struggling to re-establish themselves ever since. Fancy logos and hip new slogans won’t mean squat if you don’t have the sales to pay for them. And how do you make sales? By being a certainty in a time of uncertainty.

As a trusted expert in trade shows, and a major contributor to America’s favorite trade show blog, I’d like to offer a special blog topic today:

GREAT TRADE SHOWS FOR 2009
(please comment on any shows I may have left off of the list)

Newspaper & Print Journalists Expo

Polar Bear & Caribou Convention

Chicago Auto Show

The Annual SML (Subprime Mortgage Lenders) Conference and Exhibition

Wahabbi Terrorist Symposium and Exposition*

The Private Jet Show and Client Appreciation Luau (in sunny Maui!)**

The Bipartisan Politicians Luncheon and Bailout Expo (huge exhibits, but don’t expect any substance)

Adam Smith’s Capitalism Exhibition and Wake, visitation begins Wednesday, and continues indefinitely

IDEAS 2010 - Internation Defense Exhibition & Seminar in Pakistan (very real)

*women should be sure to shroud their faces, and men should wear long beards. 

**scheduled one week after, and in conjunction with, Chicago’s auto show

Two of my clients are exhibiting at NPE 2009. One’s a brand new client (yippee!)…one’s an existing who’s fallen off the wagon, so to speak. Though the newbie has a 10×20, you’d think he’s a city planner, for crying out loud. His accountability and attention to detail are refreshing and an immeasureable value to our process. He was ready to pay before we invoiced, his artwork’s pouring in and he’s given us more than enough time to process his paperwork and coordinate logistics. My existing client, however, is no where to be found. They have a darn big space next year, too. And darn big spaces require a lot of preparation. We started designing a few months ago, which was perfect, as they’re shaking things up a bit with regards to products and marketing objectives.

…..that was a few months ago.

They went M.I.A. and resurfaced a month or so later, informing me that the objectives have completely changed and they’re to meet with the big wigs to draw out a plan. THAT was October 20th.

We realize things have to evolve in this fragile economy. So changing objectives is fine. As is modifying the space and reducing the budget. We’re happy to help because your success is our success. The lack of communication isn’t only frustrating, it jeopardizes production and wastes the client’s, the designer’s and the account exec’s time. We’ve had this project (which we’re still really excited about) on the production schedule since August. And to date, we’re no closer to signing a contract than we were then.

My (albeit long-winded) point is: if you’re an exhibitor - heck, if you’re anyone’s customer - please have some regard for the efforts made. Know that your vendor’s sole objective is to help you have an awesome show. But we can’t do that if you’ve fallen of the planet. Let us know what’s up!

RSNA wrapped up this week - Surely you know, since we referenced it here, here and here. The horse is dead, I know.

Siemens‘ booth, sized 110′x220′, was located in the south hall. At McCormick Place, the South Hall is the absolute least-trafficked and smallest hall. Even though we were all excited about the design, you never know how a show will go until it’s all said and done. The verdict is in!

For the first three days of the show, leads were well above 2007 numbers! Spend less, get more. I like the sound of that. They did, too. Happy clients are good clients.

Ok - Enough of this rubbish. It feels very “propogandish.” I forwarded the professional photos to a friend of mine who is in the medical field. I had gushed to her about the Siemens booth over the past few months.

Her reply:

>>WOW! that IS huge!!!
>>
>>
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>>p.s. That’s what she said.

In the 1990’s and early-to-mid 2000’s, General Motors, Ford, and Chrysler survived based on the unbridled success of the Sport Utility Vehicle. Heck, Chrysler acquired AMC, who built the first “SUV,” the Jeep Grand Wagoneer, which then became the Jeep Cherokee. And the Tahoe/Suburban and Ford Explorer are still synonymous with our concept of what an SUV “is.” What’s my point?

SUV’s have been a largely successful enterprise. They captured the rugged individualism that many American’s espouse, and made it into the “BIGGEST” automotive fad ever. The big 3 were successful in developing, producing, marketing, and selling their SUV products to consumers. They may have suceeded in spite of themselves, but one can’t deny the stated premise.

The SUV wasn’t the sole cause for the peril that Ford, GM and Chrysler are exhibiting- there’s the economic slowdown, and greater challenges that I wont get into here - but the continued reliance on SUV and light truck sales, amidst competitive and market forces that demanded a new strategy, contributed to their present woes. SUV’s shouldn’t have been their “bread & butter” product in 2004, 2005, 2006, 2007, and 2008. $4 gas, remember?

So what on earth does this have to do with Trade Show Flexibility?

Let’s suppose that you find the perfect design for this year’s BIG SHOW. Should you try to sell the same SUV at next year’s show? What if all of your competitors come to next year’s show with a copy-cat booth? (it happens!) What if your business changes and you radically change how you’d like to approach the show? Important questions.

Here’s one: What if you make a big impression with show attendees - they’ll be looking for you at next year’s show. Do you want to DO SOMETHING with all that attention? Or bore them with “oh, they did that last year… What’s new?”

Are you sure you want to build another SUV?

This morning’s blog is not about push-up bras. I’ve had a few people email me asking me to blog about female supportive garments, but this is not the correct forum (the “Bro” or “Manzeer,” on the other hand, can be covered in future posts).

I’m actually going to talk about carpet padding.

Wait!! Don’t leave yet!!! I know that sounds like a ridiculously boring topic, but at the RSNA yesterday I experienced a first in trade show errors - WAY TOO MUCH CARPET PADDING.

I’ve never been in a home that had so much padding, much less an exhibit booth. It was to the extent that it was laborious to walk normally. I never really thought about too much pad being an issue, and I can’t pin down who would have made the error. Was it a client who insisted they wanted the super-upgrade, or was it the exhibit company that suggested they “set their booth apart” and really outdo themselves.

It was one of the biggest exhibits at RSNA, and you felt like you had 5 pound bricks tied to your shoes as you walked through their village of highly unimpressive mini-booths. Has anyone else seen this in practice elsewhere? Or am I the only one who found this so cumbersome and annoying?

Over the next two weekends, my wife and I are invited to 6 Christmas parties. 3 of the 6 have been hilariously, and uniquely, entitled ”Ugly Sweater” Christmas Parties. Somehow we’re trying to go to 4/6ths of them. I am not in charge of the scheduling or logistics, but I am required to make pleasant conversation.

Pleasant conversation is challenging when people want to talk about work. These rare souls, who find that a full time job is not actually full enough, would like you to take everything that you left at the office, and dump it out onto their living room floor. Once my old college roommate gets finished unleashing a liter of bile onto his wife’s brand new wood laminate floor (it looks like real hardwood! ), it will be my turn.

It’s kind of a macho thing - talking about what we do on our telephones and laptops. He travels all over the world, to extravagent places like Minnesota, Iowa, even Ohio, once. And the girls just swoon over his ability to hock insurance policies that noone understands. And what do I get to boast about?

Trade Shows. That’s right, everybody in the general public, especially your school teachers, your nurses, your accountants  - they LOVE to hear about trade shows. In fact, most people know EXACTLY what I do.

Trade shows are, according to most conversational participants, a combination of car shows, baseball card expos, and homegoods bazaars. And the complexity and nuance of my work is, as one would expect, slightly shy of my insurance God friend.

He may get the glory, but I still get the girls. Car shows are AWSOME.

Regardless, I need to find myself a new sweater.

One last note: None of the people at these sweater parties were over the age of 12 during the era of ugly sweaters, circa 1978-1992. What gives? Why is this such a popular theme? I have to buy a sweater, and then tack it up?

Likely the best place (for someone like me) to spot new business is at a trade show. One can see, first hand, what the competition’s doing and which exhibitors need a helping hand. Is it tacky, though, to work the floor during - or even before - the show? I knew someone who would take notes/pictures of crates during the install…thereby noting who was where. He also actively “worked” the exhibitors. Some reacted positively; others were annoyed. The same scenario plays out during the show: exhibitors dotting the list at RSNA, for instance, include Siemens Medical Solutions, Quest Diagnostics, GE and Philips. Big names. The ones you want in your portfolio. Do you contact them after the show or meet n’ greet on the floor…knowing there’s a risk of turning them off? The same can be said for email vs. telephone pitches. Calling a prospect fosters reactive communication and while emailing is contrarily impersonal (and a veritable shot in the dark), it does allow the reader to review at his or her convenience.

This past Wednesday, I had the pleasure of driving down to McCormick Place with some of my favorite co-workers. The cast for the drive included Midnight Michigan, senior designer; Sasha Grove, manager extrordinaire; and Linda Railroad, working the oldest profession, sales. Update: I’ve finally received permission to clarify the origin of my coworkers’ names. These are porn names: Derived by the combination of our first pet’s name with the first street name that we remember living on (I will continue utilizing my McCormick Place psuedonym, since “Lucy Barton” makes for gender-confused blogging). With this crew, it’s always guaranteed to be quite a trip. The RSNA trade show was in day 3 of exhibit set-up, so let’s recap the day’s events:

When we realized that walking would have taken us over 17 hours that we decided to drive. Linda’s directions were denounced as “the long way.” Commute time: 1 hour, 15 minutes. We covered a lot of conversational ground on the way downtown: Trade show exhibit booths, obviously; how-to-drown skunks and other suburban pests; approved alternatives to watching football over the Thanksgiving holiday; and, finally, the potential drayage costs of parking on the convention center floor, versus the parking garage ($8,000 versus $15).

After arriving, we had a very stimulating time previewing the RSNA show. The Siemens rental exhibit booth is, as expected, surreal and impressive. Midnight seemed very pleased at seeing his 3-d renderings put into corporeal existance.

Other highlights from the trade show floor: One of our competitors, expected to fold within months, builds out one of their last exhibits; and our biggest “competitor” freaks out when we walk around their largest client’s booth. Name badges and company insignia can be quite intimidating, it seems. As innovators in the rental exhibit booth business, we were pleased to see them doing a mediocre job of imitating our custom rental system (ours utilizes custom built components that… well, just go to the website). They can try to imitate, but you can’t beat the real thing.

We took my way home (2 hour drive). It was a far more scenic route, and the subject matter was far less appropriate. Drowning dogs, Linda Railroad taking the “Midnight train,” and things got worse from there. H.R. will be busy sorting out who said what!