Furnishing Costs Are Declining in Many Categories

Suppliers say labor is the biggest driver of annual price increases

By Margo McCall -- Tradeshow Week, 9/27/2004

The cost of computers and Internet access may be declining for the rest of the populace, but not for tradeshow exhibitors.

In fact, computer rentals saw the largest price increases according to the Tradeshow Week Annual Survey of Furniture and Accessory Rates. The average three-day cost of renting a Power Mac increased to $669.51, up nearly $300 from the cost indicated in the 2003 survey. The three-day cost of renting personal computers and video carts was also nearly $300 higher than the previous year's survey indicated.

Jim Clark, national tradeshow manager for Natl. MicroRentals, said computer rental costs overall are on the decline.

Today's exhibitors tend to fall into two groups: those that want a simple PC and monitor, and those interested in spending a lot of money on computers and plasma screens, according to Clark.

The cost of an ISDN line for Internet access, which is typically controlled by venues, increased to $646.27, up from $591.73 in the 2003 survey.

But not every item got pricier for exhibitors. According to the survey, prices in the United States declined for 13 of the 28 goods and services listed, including chairs, carpet, carpet installation, lighting outlets and laser printers. That compares with price decreases in eight categories the year before.

In Canada, prices increased in 20 categories in this year's survey, on par with 2003 results. The price declines were recorded for chairs, premium carpet, photos, signs and color monitors.

Jeff Quade, GES executive vice president of sales and marketing, said his company has become more aware of industry pricing on discretionary items.

"We're trying to really analyze where our pricing falls in relation to others and make sure we are price-competitive. We understand that exhibitors have a choice," he said.

Michael Cox, vice president of sales and marketing for George E. Fern Co., said his sense is that price increases are more moderate than in years past, when there was a higher tolerance for large increases. In addition, some companies might be purposely trying to keep prices low to win customers.

"I think that there are some contractors that are chasing market share in anticipation that, when the market rises, they may be able to raise their prices. That's one theory," he said.

Quade said labor costs are generally the biggest price driver. He added that the survey doesn't take into account factors such as whether a show is held at a hotel or a convention center, the length of move-in and move-out, any overtime costs incurred and the volume of business a client does with the general service contractor.