The blogosphere provides some tasty solder fodder for the Marshall-Yard to report on…
A client that we’ve enjoyed working with over the years had some very gracious things to say via their company blog - the B2b Marcom Blog. Check out Rick Short’s blurb, which also includes a very good explanation of our rental capabilities. Check it out…
I’d say more, but it would spoil the ending.
Some advice worth heeding, and some you might find amusing… Your weekly “fix” of the frugal exhibitor:
Get your Exhibit Program out of a Rut!
Desperate sales people may DESTROY the success of your trade show booth: What to do to PROTECT it!
Anything you can do to please the union labor at a show - DO IT.
Online ads aren’t the only thing that marketers expect to increase over the next year. While an overwhelming 68.7% of marketers expect to increase their Online advertising, 37.6% also expect their Event marketing to increase, with 49.9% seeing no change in that figure. While that isn’t an overwhelming increase in Events, it does reflect an opposing trend to many other forms of marketing. Take a look here. Budgets for radio, broadcast, and outdoor marketing are down significantly, whereas Events, Direct Mail, and Telemarketing are modestly increased.
The trends of modest increases are paired with modest increases for marketing budget through the second half of 2009, and through 2010. Budgets were slashed across many different industries for the first half of 2009. This has greatly affected the trade show exhibit business, with exhibit houses lowering prices and responding with additional services. Even tradeshow organizers and convention halls have responded with stimulai of their own - reduced booth space pricing, and some early indications that services for things like I&D and drayage may be reduced from their inflated levels. Our “The Frugal Exhibitor” segment chronicals online sources keeping tabs on the ebb and flow of tradeshow values.
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…)
Consumer savings rates are up in 2009 - do you have any doubt that your company has the very same mindset? Here’s to a leaner budget, and a happier boss!
Stephanie is seeing dead people DISCOUNTS
Deals at Print Expo ‘09 for Drayage
Cut costs on Pre-Tradeshow marketing - boost booth attendance for less money!
Tips for the smaller display exhibitors - make the most of your space
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.