A Tough Rowe Joins the Show

Question: It seems like you are leading Nth Degree to take on a different role than simple installation and dismantle contractor. Is this the same approach as the one taken by, say, a George P. Johnson, which started as an exhibit builder and has gotten more and more into marketing and consulting?

Answer: I think that's fair to say, but I&D is still the bulk of our revenue, 80 percent.

Q: What has provoked this change of strategy?

A: When I first got into this business and I asked people why they go to a show, they said, "Because I always have," or "Because my competitors are there." Is that a really good reason?

Shows change. Whoever's doing the planning should start with business objectives, return on the shows they go to, new shows or a new business direction that would dictate going to other shows, because their audience or objective has changed. That's why we've added these new services, like ROI analysis, show selection consulting and private event management.

Q: How has the response been?

A: Very slow the first six months. Everybody wanted to talk about it, but nobody wanted to pay for it. Having sold strategy-type work all my life, I realize that's always an issue. But the last seven or eight months, it's really picked up.

Q: As someone who's fairly new to the tradeshow industry, what's your take on it?

A: I see an old boys/old girls network in this industry, more so than in most others. Instead of what I would consider rational business decisions being made by cost benefit or capability, you hear, "I've always worked with Joe. He's never let me down."

At the same time, the mantra amongst value chain consultants — or whatever you want to call them — is fewer vendors are better. That means more negotiating leverage, better working relationships so there's added value, and lower cost to the company.

Because few vendors have done a lot of the services in this business, there's this industry norm for somebody to take the work and sub out 50 things, and say, "By the way, I'm going to buy it for a buck and charge you about 20."

Q: But what about the expertise they offer and the overhead they must pay?

A: There is some value to that. Maybe it's worth 2, 3 percent. It isn't worth 20.

Q: So, you turn down free money?

A: Well, yes. At the end of the day, clients get angry when they figure out you've been gouging them. And they're starting to figure that out. Some of them never paid attention. They just told Joe what to do, and paid the bill. It's like a pyramid scheme that's been built up, to some extent. I did some math, and I think there's 20-to-40-percent savings to get the same service, if the models I've done work.

Q: How do you rethink the outdated service and billing model without toppling the existing system?

A: I don't have a magic answer, other than my view is that if you're going to change the model, you have to tell them what their other options are, show them the benefits of it, and let the market sort out whether it's valid or not.

Q: As the head of an I&D company, what has it been like to deal with the major contractors?

A: Frustrating. I think they see show managers, not exhibitors, as their customers.

Q: You sound pretty pessimistic about the industry.

A: Well, the macroeconomic situation is causing people to rethink what they do. I think that it's going to linger for at least 12 more months. The thing that's positive about a struggle like this is, if you come out of it healthy enough to survive, you're a much better company.

Q: Now that the dust has settled from last year's brouhaha over Charlie Greco's plan to use an exclusive I&D provider for IDG World Expo shows — followed by his decision to use you as preferred provider — in retrospect, did you know what you were getting into?

A: We knew exactly what was going on, and we understood what was at stake. It was a play to get another monopoly, and that's why we had to fight that battle. We did, and we were successful. I think we stemmed the tide of something that wouldn't have been good for exhibitors.

Q: What would you say to those who thought your battle was not to help exhibitors, but was motivated by your company's own self-interest?

A: I bore the brunt of the wrath, I took the risk. I was the only one who said we won't provide supervision only. Here's what it means to your exhibitors.

Isn't that the way this economy works? You take risks, you get rewards. I'm in business to keep my employees' career opportunities and to make money for my investors, and I'm not going to apologize for that. We could have bid on the exclusive contract and been better off.

Q: How is business for Nth Degree these days?

A: It's soft, I'm not going to deny that. I've never been happy with revenues, and I won't say I'm happy here, but I feel like the pieces I started identifying 15 months ago are in place now, and we're seeing momentum building in areas that are new for Nth Degree.

Q: Do you expect to be at Nth Degree for a while?

A: I hope so. You don't always control your own destiny. Will I be in it 30 years? Probably not, just because I love learning about different businesses. But I think this is an interesting industry with a lot of opportunity to grow and become more sophisticated. That's exciting to me.