Pressure from budget-conscious exhibitors is forcing contractors and show organizers to create innovative ways of working with one another to create savings for exhibitors. The result: New ways of doing business and charging for services are on the horizon.
By Linda Chandler
Show pricing models
Because of market pressures, some contractors are offering show managers new models to pay for their services. Here are a few popular models.
Calculated set fee — based on the square footage of the show, anticipated number of exhibitors, history of services used, costs for labor in the city where show is held, number of loading docks in facility, time to move in and out, etc., with built-in mark-up for contractor to cover costs and make a profit. The advantage: Show management knows up front what the fees will be, but show management could be left with covering some costs if the show underperforms. The contractor makes a profit either way.
Time and materials — the show manager and contractor agree on a specified fee or commission on top of actual costs. Show management sees all costs so there are no hidden charges (allowing management to see places where money could be saved), however, the actual cost won’t be known until after the event.
Percentage of revenues — the show manager and contractor agree to a predetermined division of gross or net revenues. This method requires transparent accounting on both sides, so both sides are encouraged to take cost-saving steps, however, there can be many uncertainties if the show isn’t established.
Exhibitor pricing models
Innovations are also taking place in the way show management and contractors charge exhibitors for services. Here are some popular methods.
Square footage of booth and pipe and drape are included in the booth price, everything else priced individually. The organizer has little service responsibility, but the disadvantage is exhibitors may feel nickled and dimed.
Package deals, including chairs, carpet, tables, signage, maybe even basic electricity. The advantage is show management can calculate package costs to achieve discounts and the exhibitor’s basic needs are met in one order.
All-inclusive, includes drayage, labor and all of the above. Show management sets standards and deadlines to get better deals. It’s up to exhibitors to abide by deadlines to save money.
Option packages based on square footage and individual wants/needs. Show management is perceived as flexible, and exhibitors get customization.
Other Resources
“IAEM Cost of Doing Business Study 2002,” $225 for IAEM members. Call (972) 458-8002. Examines the average expenditures to produce a show.
“99 Ways to Cut Costs,” by Susan Friedmann,http://www.tsea.org/page_287.php Includes several tips on how to save money when working with contractors.
“SISO Financial Statistics Survey,” $495 for SISO members, $995 to non-members. Offers a benchmark against other shows
Sources
Ellen Beckert, The Freeman Cos.,
(214) 670-9089
B.J. Enright, TradeshowLogistics,
(770) 590-1036
Marty Glynn, Metropolitan Exposition Services, (201) 798-5959
Chris Meyer, Las Vegas Convention & Visitors Authority, (702) 892-2855
Jill Eckhaus, AFCOM, (714) 997-7966
Linda Chandler, a freelance writer based in Dallas, has written for association publications for 15 years. She can be reached atlinda.chandler@earthlink.net.
Links
• Could your contractor save your show?
• Working with a contractor on last-minute show changes
