Marshall Yard:

Due to unexplainable reader demands, nay threats, we will be embarking on a journey of exploration and enlightenment in pertinence to carpet padding. No trade show blog would be complete without it.

Carpet padding has been called by some “the 3rd rail of trade shows.” If you search the blogosphere, you’ll find nary a tradeshow blog post or website dedicated solely to the subject of carpet padding. Why? Or, perhaps more conclusively, one should ask, WHY NOT?

Carpet padding is BY FAR the most integral factor in the design, fabrication, and implementation of an effective trade show exhibit. Some exhibitors have a marred track record of charging clients for unnecessary trade show items like: graphics, lighting, reception counters, demo-stations, the list goes on. We all know that this business has been characterized by this kind of behavior since its INCEPTION. What some don’t recognize, is that this is still commonplace in this industry. A client asked me JUST THIS MORNING whether he could add a table and four chairs to his exhibit booth. Disgusting.

If you are a client looking to custom design your booth, here are a few key questions to ask your trade show exhibit company:

1. What will visitors to my booth be standing on?

2. If a visitor refuses to wear appropriate footwear, how likely are they to stand in MY BOOTH, and not someone else’s?

3. Will the carpeting be obstructed by any unneccessary objects?

That should ensure that your trade show exhibit program gets off to a good start for 2009’s event.

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.

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?

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!

This week, the buzz around the office is all about the RSNA show (the Radialogical Society of North America’s annual meeting & expo). We have a multitude of outstanding clients at the RSNA’s. They range from Imaging on Call, who has a 20 ft. x 20 ft. custom rental booth, to the other extreme, Siemens, with a whopping 110 ft. x 220 ft. exhibit. Building a miniature “village” of different structures in a matter of a few days is fun to watch.

Word on the street (perception) is that trade shows will have fewer exhibitors in 2009, taking up less convention hall space, and with smaller exhibits, as the broader economy heads into recession. I think that’s true, by and large, but there are individual companies that are exceptions to this rule. Which side of the coin is your company on?

Tails:

Revenue is declining, profits are tighter (or in the red), and the marketing budget has a large “blip” that is “Trade Shows/Events.” In order to survive, your company decides to cut back everything, and the exposure and opportunity that a well executed trade show can offer gets thrown out with the “bathwater.” Hopefully these companies do not own their trade show exhibits - else they are wasting big marketing dollars that were invested when the economy was more favorable. In addition, there is a continuing expense of storing their exhibit property. This is a reality many companies are facing. Either scale down, or kill the program entirely.

Heads:

Your company has continued gobbling up market share, or may even be consuming competitors’ businesses via acquisition or attrition. I have a number of clients who are in this position: They are GROWING their tradeshow presence in order to undertake some major corporate agendie- Rebranding, launching new products (perhaps integrating their new acquisitions’ product line), or merely establishing their role as industry leaders. Sometimes they’re doing preventive work on potential misconceptions of who is struggling, and who is surviving, in the new economy. An effective trade show exhibit can allow a company to accomplish all of these goals in one space. A custom rental booth can be designed for each individual trade show, to ensure that the message that is conveyed is timely and precise for todays trade show audience, not last year’s.

Heads or tails, it seems like the company that rents their exhibit is better off. If you can’t afford to exhibit, you can cross off that expense for FY09. If you can afford to exhibit, you can do exactly what you want for 2009’s exhibition (e.g. - Siemens and Imaging On Call can build totally different designs for every show). It depends on what the reality is for your company, but at least you get to decide on how you’ll be perceived.

A new Costco opened near my house this past weekend. Imagine how surprised I was that humongous bags of rice are for sale in unlimited quantities. I remember hysterical stories about the famines we should expect due to big box stores rationing such food staples earlier in ‘08. Since popular opinion has it that the sky is falling, I should have piled as many bags as would fit in my sedan, and crawled into my nifty nuclear bunker. Instead I bought socks - shades of olive, green, and brown.

For the past year or so, writing about “marketing in a recession” was all the rage. Everyone agrees that we’re in a recession, except for the rule of thumb on recessions. The rule of thumb guy is still giving me a thumbs up. Not enthusiastically, but still… I don’t know if I trust that guy anymore.

So what are people writing about now? In the ever changing one-upmanship that is online news, the hip search term for your business article is now “marketing in a DEPRESSION.” To be more precise, marketers are strategizing over marketing in a “pre-depression” (this is the beginning of the beginning of a depression). Hopefully, when this depression sets in, your company will be a-ok, and all due to your wise marketing department decisions. Depression becomes a career-advancer, and your true character will shine through (due to your having read a “snarky” blog post about it…). You’ll be the new CEO once this whole mess blows over. Sure you will.

Marketing in a depression seems to be a tough burden to undertake. My guess is, your company either has enough cash reserves, or it doesn’t. If they have the reserves, your job will be intact, and your task of conveying the company’s message in a competitive, rapidly evolving marketplace will continue. The market changes, but the task remains constant. But guessing whether this is a recession or a depression is probably NOT a part of your job. It isn’t mine, I’m pretty sure. What are your real options?

Option A: You guess depression, you advocate that the marketing budget gets gutted, BUT the economy goes all “fast and loose” on us. Then you will play catch up during the coming expansion, as competitors gobbled up your market share. Option B: If you guess depression and it’s a depression, you might be vindicated, but you will essentially be doing what you’re always supposed to do: Making wise decisions with your marketing dollars. What the heck were you doing before this looming recession or depression? 

If you think it’s a prudent time to stock up on rice, while all the fools buy socks and wide-screens, that’s fine. But bursting into your boss’s office telling him or her about the expected course of the business cycle - is that really a good idea? Understanding how to market in a different business cycle is important, but being the first to yell fire is something you’d be well served to avoid.