Marshall Yard:

Sorry for the awkward humor, but I’m heading to the second game of the White Sox’ double header today (weather permitting). The main pitch [sorry] of today’s trade show blog post hits at the three distinct business models present in our industry. First, there are design agencies, who design home run exhibits, and must broker out the manufacturing of the exhibit to various other vendors. Next, there are exhibit companies, who also create championship booth designs, but who possess the internal capabilities to create the displays that have been rendered for clients. Lastly, there are companies who are neither of the above: They contract with design firms - who then design exhibits for the exhibit company’s clientelle, later to be built by the exhibit firm. What are the advantages or disadvantages of these three business models?

Let’s consider the cost of designing: The agency will likely bill the exhibitor for design time. The exhibit company with in-house designers will [sometimes] consider design part of the exhibit overhead. Buried in the price of your exhibit is the time spent on your custom design, but based on a very rough estimate of how many hours any project of a certain scope would take to create. Other companies with in-house capabilities will still charge hourly for design time, so this second group is actually varied with how they handle design time. The third group - who contract their designs through a third party vendor - is similarly varied. Some may handle the design cost in the price of the exhibit - likely marked up to account for the risk therein. Others may charge up-front for design. When it comes to how designing is charged to exhibitors, it would be a smart idea to get clarification of this detail up front (like on the FIRST conversation with an exhibitor). In some occasions I would even try to get this information in writing. With a sour trade show economy, there are floundering firms whose behavior leaves something to be desired. What do you think the best business model is for your needs? Up front design charges, overhead treatment of designing, or direct billing, after the fact? More importantly, how do these business models affect execution or implementation of your exhibit design to a working, walking, talking exhibit booth? (more…)

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.

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?

By: Susie Kleiner 

I must share a “customer service” at its best with all of you readers, but first you will need a little background on what lead up to it.  Over a year back, I purchased a piece of software to help us with our imports and database management, to work hand in hand with ACT 2007.  Upon my transfer from one position to another and a different computer -  I needed to un-register this software.  Understandable, really, truly it is – as my position grew, I needed to un-register this software once again and re-install it on another’s machine.  Understandable, really it is! Then yet again, another’s position grew and moved on, and I need to un-register it, guess what? Now the sellers of the software want a fee for this, it wouldn’t re-register, I ran out of re-registers? What the heck is that? What is this all about, I do not understand this concept, we bought the software, we bought a license, clearly they have control and know when it is trying to be registered, not an issue. 

We needed it, and are willing to comply, with the one machine rule.  Willing to comply with we have you over a barrel now, pay us more. Not a chance, its principal.

Well, this is where true customer service comes in, after the conversation I had with this company, I decided to look elsewhere.  I found a company called ACTMate Corporation and decided to download the trial version.  It seemed to do what I needed but I couldn’t clearly see the end results being a trial version and it seemed to be missing something.  

With emails back and forth to the owner of the company, Mitch Stephens, he told me he would check into this.   He did, Mitch took the time to contact me and said it would be much easier to delve into the issue I had live.  Mitch spent quite a bit of time on the phone with me on the initial conversation and had to do some tweak’s to the program to help me out.  He did just that!   

When Mitch called me back after he “tweaked” the program, ON FAITH, he gave me an access code to get the full results of this program.  I say ON FAITH, because, this man knew me not from Adam or Eve, and was willing to put himself and his program to the test for someone who found him online.   Thank you Mitch, customer service at its best!

Going to a trade show should be a successful.
Why am I going to a trade show? (define your marketing strategy)

Introduce new or improved product
Gain new clients
Enhance client relationships
Position within your market or a new market
Tell your story
All of the above!

What will I need in my exhibit space? (address your functional and aesthetic needs)

High identification
Seating
Product display
Video / audio
Conferencing areas
Lighting
Demonstration areas

How much am I willing to spend? (determine your budget)
Exhibit Booth space
Renting or purchasing an exhibit graphics
Services (installing & dismantling, transportation, drayage, etc.)
Is my paperwork completed and communicated? (plan and prepare)
Deadlines (EAC forms, exhibit badges, registration, etc.)
Exhibit/Show Regulations
Employee training
Exhibit staffing

How can I assess my return on investment? (track your leads and sales)
Define goals for value management / tracking
Track lead response
Thank you / acknowledge (existing clients and new prospects)
Advertise and report internally – share your successes!

My company has instituted a new plan, providing care packages to our clients to use while their booth is being set up. Do you really think this is an added service?

Signed: Personal Touch

Dear Touchy,

I applaud your company in recognizing that GREAT customer service. Satisfaction is an indispensable part of your daily operation and is more than just a financial transaction. In this age of “e” business, most companies and clients have become accustomed to fulfilling orders and requests that are being closed via electronic means, which eliminates all aspects of the human touch. The “art” of personal touch” is a concept that has gone by the wayside.

After talking with you at length, I am very impressed with Catalyst Exhibits’  implementation of this care package. These kits include all the tools that might be needed by your client in case anything comes up on the show floor. This also shows how you are listening to your clients’ small talk and remembering to include some specialty items and treats that he/she may favor, and may have mentioned in casual conversation. I would encourage you to welcome input from others in your company that may have personal contact with the client as well.

Personalization is all about providing information that reflects what you know about a certain customer, and what you know is changing all the time. Recognizing that the set up of a trade show booth can be a long laborious task, this care package sends a positive message of “we know and we care” and provides a distinct message of exceptional customer service. I don’t think that any client can deny that being thought of, or having their needs responded to, is a welcoming feeling in today’s market. In this environment, personalization is critical to helping customers, keep them, and give them the best service in the trade show exhibit industry.