September 2000
Operational Pitfalls
40 tips on avoiding costly errors and keeping operations running smoothly on site
By Michelle Bruno
In exhibition operations, hindsight is 20-20. Most operations managers wish they knew then(at the beginning of their careers) what they know now — how to overcome
common pitfalls that can cost money and alienate customers. From negotiatingwin-win vendor contracts to developing exhibitor kits that customers will read, learn from the experts on both sides of the issue, show managers andcontractors, how to recognize trouble spots and avoid problem situations beforethey arise.
Floor plans
Booths are sometimes added to afloor plan without any thought given to fire codes or blocking off aisles, exitdoors and fire extinguishers. Control of the floor plan and any changes made tothe original design, even if approved by the contractor and facility, mustremain solely with the operations manager.
Temporary booth space, such as intents or other structures, requires consideration of heating, ventilation andair conditioning requirements. Avoid placing booths in front of intake oroutflow valves, as the noise and airflow can be distracting.
Show expansion often prompts theuse of non-traditional space, such as adjacent ballrooms or arenas. Be aware ofthe need to generate traffic in these areas. Opening peripheral sites one-halfhour early, placing major attractions within them (food concessions, speakers),or giving away items of interest (T-shirts, autographed posters) in these areascan be good traffic generators.
Close gaps in the floor plan fromunsold exhibit space by offering it to adjacent exhibitors at the cost ofcarpeting or other out-of-pocket expenses to show management.
Contractors
The services provided by thegeneral service contractor represent the largest cost center of an operationsbudget. Negotiating a competitive service package is an operational imperative.When negotiating a contract, it’s important to provide the bidders with asmuch information about your show as possible. To accomplish this, maintain ahistory of the volume figures from previous year’s shows on items such astotal exhibitor freight, rental furniture, carpeting and booth labor.
Keeping vendor pricingcompetitive requires vigilance. Whether or not a vendor contract is subject torenegotiation, all contractors should be evaluated at regular intervals,generally every three years. Review pricing information and service packagesfrom competing companies and other shows as a way to benchmark the pricing andservices being offered by current vendors. As a matter of policy, set acceptablelevels for annual price increases in your contracts.
Use the show size to youradvantage. For established shows in major cities, multiple-year contracts withnational service contractors may offer organizers greater cost savings. Showproducers with smaller events in off-line locations may benefit more fromutilizing local general contractors.
The use of online interactiveexhibitor manuals makes show information more accessible and facilitatescommunication between all parties. Operations managers should try to movecontractors toward providing a means to request products and services online.
Registration
Ask registration contractors toprovide you with contingency plans for dealing with such emergencies as badgestock shortages, equipment failures, and insufficient personnel and/or equipment to handle surges in attendance.
View the registration logisticsthrough the eyes of the attendee. Walk the path that the attendee will walk,register as the attendee will register and access the exhibit halls in the sameways and in the same locations that attendees will. Doing so can point out shortcomings in the overall registration plan.
Labor
Labor is one of the mostdifficult costs to control and the subject of most exhibitor complaints. Meetdirectly with local unions to interpret and clarify labor rules, regulations andpricing. Obtain precise definitions on what tasks exhibitors are and are notallowed to perform themselves, which unions have jurisdiction over whichoperational tasks (drayage vs. rigging, for example), when (what days and afterwhat number of hours worked per day) the labor rates change from straight-timeto overtime and double-time rates.
For liability reasons, showmanagement should approve all Exhibitor Appointed Contractors (EACs) who will beon the show floor. Once approved, exhibitor manuals containing criticaldeadlines or targeted move-in dates should be distributed automatically to EACs.Temporary work badges and buttons should give EAC workers access to all areas ofthe exhibit hall so they can move freely through the building to servicemultiple clients. Show managers should inform EACs in a timely manner ifoutlined requirements have not been met (insurance certificates on file, EACfees being paid, etc.).
Minimize labor rates by beingcreative and proactive with the venue. Choose sites with dates that areavailable on days when straight-time labor rates are applicable. If possible,negotiate with show managers who are holding events immediately before orimmediately after yours about the possibility of sharing move-in or move-outdates. Try to coordinate some installation (cabling or equipment)
for your event during the rental period of the preceding event in exchange forcompensation.
When show move-in and move-outdates cover a weekend, ask the general contractor to provide you with one laborrate that factors in some exhibitors having to move-in during straight-time andothers having to move-in during overtime. Some exhibitors pay slightly more, butothers pay a lot less. The overall result is greater exhibitor satisfaction.
Shipping
Exhibitors can avoid highshipping and drayage costs with assistance from operations managers. Encourageexhibitors to ship to the general contractor’s warehouse in advance —especially if their targeted move-in date is on a weekend, which can involveovertime drayage rates. Advance shipping enables exhibitors to confirm thearrival of their freight at the show. Additionally, freight arriving at thewarehouse in a timely manner will usually be delivered to the booth during thecontractor’s move-in period at straight-time drayage rates.
Some general contractors alsooffer shipping services. By appointing them as the preferred or official carrierfor the show, the overall pricing for show management on other services, such asfurniture rental or carpeting, can often be reduced.
Encourage exhibitors to ask forquotes for international shipping and customs services in advance. The quotes should include both inbound and outbound transportation costs, dutiesand taxes.
Insurance
To reduce liability risks thatcan cause injuries, walk the floor each morning before the show opens. Potentialhazards to be on the alert for include: booths with protruding objects; booths rails that have beenpartially dismantled to allow attendees to pass through; any overhead that couldfall or be bumped into; electrical wires not properly taped down or covered; andcarpets inadequately taped or with bumps that can cause tripping.
If disaster should strike, callyour insurance company immediately. Make sure you’ve got 24-hour phone numbers(office, home, cell phone and pager) for the appropriate insurance contacts. They can help you resolve problems and advise about the kinds of expenses they will be able to pay. Get a claim number as soon as possible.
Rules & regulations
Communicate rules and regulationsto exhibitors on numerous occasions in different formats. In addition to placingthis information in the exhibitor manual, use exhibitor bulletins, newsletters,e-mail and fax broadcasts to advise exhibitors of rule changes, deadlines andways to save money on ordering services.
Publish only those rules andregulations you intend to enforce, and limit rules to those that specificallysuit your event. Rule templates often contain clauses that are unsuitable for aspecific event and should be excluded.
In the exhibitor manual, includea form requiring exhibitors to attest that they have reviewed and understand allrules and regulations. Even though they may not return the form, it drawsattention to the rules and regulations and highlights their importance.
Security
Theft, including theft of property and industrial espionage, is an unfortunate part of almost every show.Hire an outside security consultant to develop a security plan for your show andevaluate the policies, procedures and personnel of your security vendor.
During show hours, place a guardat every entrance and exit, if affordable. Don’t overlook fire doors, as localfire regulations may require them to remain unlocked. However, if this provestoo costly, station guards at every second location.
Require everyone to wear clearlyvisible badges. Consider color coding your badges to correspond to move-in, showhours, after hours and move-out. Require facility staff to wear facility photobadges, as well as show-issued badges.
Floor management
If, for budgetary reasons, aninadequate number of floor managers are available, “deputize” sales staff.Ask them to patrol exhibit areas in search of potential problems before theyarise.
Require that floor managers visitand make contact with a pre-determined number of exhibitors per day askingwhether they are in need of assistance.
Organize exhibitor committees anduse volunteers to patrol exhibit areas looking for trouble spots. Exhibitorsoften react favorably to comments and suggestions offered by peers rather thanshow management.
Facility contracts
Facility contracts often containclauses that are potentially inappropriate for some shows. Review facilitycontracts for the following questionable clauses:
A requirement for written approval from the facility in the event of a sublease of rented space to anotherparty (such as sales of exhibit space to an exhibitor). Show management shouldbe expressly permitted to sublease space to exhibitors.
Requirements that show managementbe responsible for all losses and indemnify and hold harmless the facility against any and all claims. Facilities should be held responsible for losses ordamage as the result of their own negligence.
Any claims to the rights for TVand radio broadcasts from the facility for an event. These rights should beretained by show management for use at its sole discretion.
Claims by the facility tocommissions from sales of books, novelties or other materials offered for saleby show management or exhibitors. Show management and exhibitors should have theright to consummate sales without having to compensate the facility.
A requirement that the facilitymust approve all show advertising in which their name is mentioned should either be omitted from the contract orat least negotiated to the satisfaction of the organizer.
On-site costs
Try to minimize scenariosinvolving labor to be charged on an hourly basis. For example, if you are payingfor aisle signage and/or labor to hang it, request that the signage be priced toinclude the labor charge.
Food concessionaires often require minimums or extra charges to remain open duringinstallation-and-dismantling periods. Operations managers often overlook thesehidden costs.
Trade-outs with publications forbooth space or literature distribution in common areas in exchange foradvertising consideration aren’t always a fair deal. Make sure that you haveconsidered all of the costs to show management associated with such trade-outs.Literature distribution, for example, can require labor to place and replenish stock throughout the show, as well as the provision of shelving or tables.
Items ordered by show personnelfrom the facility, decorators or other vendors (a table here and an exhibitor sign there) for exhibitors can add up.Operations managers should be the only ones allowed to order on-site services.
Disaster plans
Operations managers should haveemergency or disaster plans. The plans should address topics such as chain ofcommand and communications, locations where operations personnel should musterin case radio and telephone communication is eliminated, and contact proceduresfor local emergency services from police, fire department and paramedics.
Show managers should meet and
discuss contingency plans with the facility security manager. Check frequentlywith weather services, the convention and visitors bureau and other appropriateparties to anticipate emergencies, such as bad weather, labor strikes andpolitical protests.
Review disaster plans with showpersonnel during pre-conference meetings.
Michelle Bruno is a writer andWeb publisher based in Salt Lake City. She has worked in and written about theinternational events industry for 15 years. She can be reached at michelle@brunogroup.com.
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