Corporate Exhibitors: Sky (Might Be) Falling

Show managers, take good note: The number of exhibiting companies unhappy with the results they get from your shows, unfortunately, is skyrocketing.

According to the 2008 Tradeshow Week survey of corporate exhibitors, 32 percent of companies found the results from tradeshows to be worse this year, compared with 9 percent in 2007. And the reasons why are being repeated throughout many of the industry's sectors – the weakened economy and falling attendance.

“Everyone's running around saying, 'the sky is falling,' ... and I think that's how we perceive things in a recession,” said Margit Weisgal, president and CEO of the Trade Show Exhibitors Assn. “But, it's industry specific, it's not across the board, and that's what I am seeing.”

Industry specific or not, with prices high, a lot of exhibitors aren't growing their booths, and only 10 percent of the survey's 53 respondents said their exhibit space would increase, while 31 percent plan to decrease space. In 2007, those planning to increase was more than double that, at 24 percent, while only 18 percent expected to decrease exhibit space.

“It has to do with the level of business (and) the ... size of the orders that the customers are placing,” said Ron Schoof, president and owner of Plano, Texas-based Schoof & Associates, a consulting company. “It is definitely off this year versus the past, but that's kind of expected under the (economic) circumstances.”

Over and over again, in their write-in answers, survey respondents blamed the economy in some form or another for why they chose to shrink their space – be it budget reductions, lack of attendees or increased costs for drayage, labor and freight sale.

“I think there are things that are too expensive for what they are,” said Robin Gathman, convention and meetings coordinator for Planmeca USA, a dental equipment manufacturing company that exhibits at 85 tradeshows a year. “I know it's the little things, like the garbage cans at $15 to $20 to rent.”

When it comes to what tradeshow costs exhibitors felt exceeded their ROI, respondents didn't change much in 2008, keeping drayage, 65 percent, and exhibit space, 46 percent, in the top two spots – not much difference from 2007's 55 percent and 39 percent, respectively.

As for the overall most inflated tradeshow cost? Again, 2008 answers were on par with 2007, with 54 percent blaming drayage and 19 percent, exhibit space.

So, what can the exhibitors do to remedy the situation?

“The only thing we can do is do it ourselves, and ... a lot of times we can't do it ourselves. It's like if you bring a vacuum cleaner to New York, they'll put dirt in your booth,” Gathman said. “Those are the little things that if we didn't have to pay for some of that stuff and we could do those things ourselves, I think we'd also feel better about it. ... I mean, they sound so miniscule, but when I do 85 shows a year, if I had to add up all those extra charges, I could save so much more money, (and) I wouldn't have a problem paying for the drayage.”

According to Weisgal, another way exhibitors can help themselves is through education – educating themselves not only on how to better exhibit at tradeshows, but also on their buyers.

“How many (exhibitors) have been to ... an exhibitor education session to see what more they can do?” she said.

And as for show attendees, Weisgal added, if exhibitors know who their target audience is, what they look like and how they respond and act, then they will get their sales and grow their businesses.

It isn't all dependent on the exhibitors though. Show management will have to step-up and do their part, since 59 percent of respondents said the high costs of exhibit space, drayage and other show necessities have stopped them from exhibiting at some tradeshows, up from 43 percent last year. Out of those who said they stopped exhibiting, respondents gave an average of 7.8 shows pulled from their schedules, with a high of 36.

There are ways show management can help, Weisgal said, one of which is The Perfect Partnership program through TSEA.

“We are partnering with show organizers right now, too, and it doesn't cost them anything, but we help them educate their exhibitors,” she added. “We are the perfect partners for the exhibitors and the show organizers.”

The complaints don't end there, either. In 2008, according to the survey, 32 percent of respondents said their company's attitude toward tradeshows as a marketing medium was negative, compared with 19 percent in 2007. And those companies that view the medium as positive dropped from 40 percent in 2007 to 28 percent this year.

“It's something that you're obliged to be there but doesn't bring anything in. ... I'm not getting what I'm looking for (at the tradeshows),” said Ron White, director of sales and marketing for Montreal-based BMH Systems.

But, despite the weakened economy and higher costs in nearly every area, the number of tradeshows in which respondents planned to exhibit during 2008 jumped to an average of 36 percent, from 25 percent in 2007, with a high of 350 shows. Why is this?

“This is not the first recession tradeshows have been through,” Weisgal said. The returns from tradeshows, such as people seeing the company name or learning what the company can do for them, she added, often outweighs the investment, which keeps exhibitors coming back for more.

Gathman agreed: “It's like in a lot of industries. Without the tradeshows, you would not have the accessibility to some of the leads you need.”

According to White, who exhibits at about two tradeshows each year, there is more to it than just that. He said it is important for companies to continue exhibiting in order to quiet the competition. “If you're not at the show, (the competition) will use it and say, 'ah, he's in trouble,' because you're not exhibiting,” White added. “It's more or less like you have to be there, and you have to portray the name to make sure that at least it's visible so people will know that you're still in business. But it doesn't bring anything else concrete – like a solid lead.”

This may be true for some in 2008, but, Schoof said, from what he has seen, many exhibitors – both his clients and business associates – are choosing to exhibit at fewer tradeshows in 2009.

“Both my major clients are reviewing right now with me the shows that they shouldn't be participating in (during) 2009,” he added.

Sixty-three percent of respondents said that travel, lodging and entertainment increased by more than 5 percent in 2008, compared with 2007.