Inflation Bells Chiming?
This blog post didn’t make it past the “draft” stage when I wrote it a month and a half ago. Let’s just say I may have jumped the gun! Though it may seem mildly unrelated to a trade show blog’s purpose, I find the threat of inflation to be especially thorny for the rental or purchase of expo booth displays. In fact, the prospect of rising prices should concern us all when it comes to the subject of exhibiting at upcoming shows. I’m not omniscient, however likely that may have seemed prior to this admission, so you tell me - Are we to beware of inflation, or should we concern ourselves more with those deflating marketing budgets instead?
As our nation, and indeed the entire world, continues to borrow its way out of the current recession, we’re presently faced with rising bond yields. For those of you who based your marketing strategy on buying bonds, this is awful. But then again, you’re not bond traders, you’re marketeers! Bond prices are falling, so it’s a good thing your marketing plan was actually based on more sound methods-like internet SEO, social networking, e-marketing, trade shows, and event marketing. But will these things start costing much, much more?
Unfortunately for all of us, I believe rising bond yields will translate into higher costs for goods and services of all stripes, as lending costs rise and companies pass along those increases to consumers. Furthermore, with federal, state and municipal governments crying broke(n), we’ll encounter higher taxation across the board.
How does this specifically impact trade show exhibits? The exhibit production process is a concert wherein raw materials meet skilled laborers, followed by transportation, bringing them to a venue that demands a hefty dose of taxes, steep union labor “tariffs,” and a healthy dose of bureaucracy (in the case of McCormick Place, everything is overseen by the MPEA - a municipal body). Ours is a business where inflation meets governmental taxation and waste on a daily basis. The process typically involves trade show exhibit houses “absorbing” the out-of-wack show service costs. With inflation, however, the battered marketing budgets of exhibitors may find that exhibit houses are not nearly as capable of picking up the slack as we are presently.
Inflation has not merged into the fast lane of product pricing yet, having only introduced itself to bond traders over the past several weeks. Just consider this to be your first friendly reminder from trade show-ville. We might be in for a bumpy ride!
Disagree with me? Think I’m just being a pompous, alarmist jerk? Let me hear about it.
Tags: exhibit pricing, inflation, recession, trade show blog
May 28th, 2009 at 9:08 am
I can’t say I agre with you at all. Inflation? We’re in the middle of deflation BIG TIME. I think you’re still jumping the gun huge. Call me in a year when inflation actually has a chance of actually happening. Right now, we have too few dollars chasing too many goods, not the other way around. Get real!
May 28th, 2009 at 9:49 am
We’re in a business where products are contracted for 6+ months prior to the delivery of goods. It seems like that remote possibility that is 6-12 months away matters. Considering the kinds of commitments in this business, and the fast and loose way in which services are handled (not-to-exceed estimates that can increase, drayage rates that can be applied creatively to exhibitors’ detriments, and shipping - a third party cost that will fluctuate with the mere cost of fuel). Sorry for thinking it’s applicable, but to think it isn’t seems intellectually negligent.
October 27th, 2009 at 3:10 pm
Still a horribly premature post. What the heck was I thinking. Maybe 10-12 months ahead of my time?