July/August 2008
Marketwatch: Contractor Budgets

Show organizers’ 2008 decorating budgets increase more than 4 percent



Show organizers spend an average of 18 percent of their total show expenditures on official services contractor services, according to the 175 show organizers who responded to an online survey conducted by EXPO Magazine and Exhibit Surveys Inc. in June. Organizers indicate this expense increased by an average of 4.2 percent in 2008 compared with 2007, and their exhibitors paid an average increase of 4.9 percent for show services during the same period.

For-profit show organizers reported spending an average of 19.3 percent of their 2008 total show expenditures on official services contractor services — an increase of 4.1 percent compared with 2007, while associations reported spending an average of 16.8 percent, representing an increase of 3.8 percent over last year. The survey found that organizers producing consumer shows reported spending an average of 21.9 percent of their total show expenditures on official services contractor services — a 5.2 percent increase compared with last year, while trade show organizers reported spending an average of 17 percent or a 4.5 percent increase over 2007.

When it comes to selecting an official services contractor, show organizers report overall that the three most critical factors are customer service (54 percent), exhibitor pricing (43 percent) and show management pricing (41 percent). The least important factors are the extent of exhibitor services available, the relationship the organizer has with the salesperson/company and show experience.





Verbatim Responses
What is your biggest challenge in working with official services contractors?
• Communication
• Meeting deadlines
• Changes in management
• Accessibility
• Consistency from market to market in quality, service, equipment and personnel
• Exhibitor drayage charges
• Customer service at the hands-on level
• Exhibitor satisfaction in relation to labor unions
• Containing costs and level of service
• Employee turnover — never having the same crew from one year to the next
• Consistency with the staff and union workers
• Keeping costs reasonable for exhibitors, particularly small companies
• Labor rates and markup
• Making certain that they keep our exhibitors happy
• Lack of creativity
• Failure to be thorough and proactive
• Cost control
• Getting good subcontractors
• Pricing of services far exceeds the value
• Trying to control rates to ensure ROI for all parties
• Union rules
• Making sure that prices are fair for show management and exhibitors
• Maintaining and managing the relationship while insisting on higher value delivered
• Getting nickeled and dimed


Kara Horner is Managing Editor of EXPO. She can be reached at 913-344-1345 or e-mail: khorner@red7media.com.

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