Las Vegas Suppliers: Facing a Different Reality

For decades, Las Vegas has been the land of opportunity, the place people without Harvard MBAs could locate, see a need, work hard and establish a successful business.

Talking to Las Vegas entrepreneurs serving the tradeshow industry, times are definitely tough. They agree, however, that ideas and energy are more important than ever in surviving the current economy and preparing for a future after the downturn.

Jaki Baskow has been in business in Las Vegas for 32 years. She recently gave up a building Baskow and Associates rented next door and consolidated staff in the building it owns. Baskow, whose company is an event, meeting and destination management company, personally books much of her company’s celebrity entertainment.

“We are quite flexible on pricing these days,” she said.

In addition, her company, working with Killingsworth Presentations, recently introduced what she called “the next best thing” to visiting a tradeshow in person, a live Internet broadcast from a tradeshow booth.

The live broadcast, highlighting new products, was aimed at buyers, vendors and company representatives who, due to cutbacks, were unable to attend.

“We still want people to attend tradeshows,” Baskow said, “but these days, you have to offer options.”

As to the future, she added her company will pursue bigger and more elaborate events when the economy improves. Having survived more than one downturn, Baskow’s best advice: “Never assume business will be business as usual.”

Celebrating 20 years in business, Somers Furniture, which services the tradeshow industry, looked to be thriving during Super Bowl weekend when 50 part-time workers in “semi after semi” delivered furniture to Las Vegas resorts for game parties.

“But that’s not the whole story,” said owner Debbi Somers. The company’s 17 full-time employees are in survival mode.

“From January through November of last year,” Somers explained, “in addition to our regular business, we made a point to visit our customers and talk to them about how they are handling the recession. I remember one woman just broke into tears as we talked because her company was about to file bankruptcy. Another had crates in the front lobby because they were getting ready to move out.”

To prepare for the future, Somers’ company is beefing up its marketing, with changes to its Web site and entering the world of social media, such as Facebook and LinkedIn. Looking to the future, Somers also uses the Internet to establish business outside of Las Vegas, especially with its line of custom-manufactured furniture.

Elite Media, the Las Vegas family-owned company known for its gigantic building wraps – which boldly announce the arrival of tradeshows in Sin City, among other things – and has as its slogan “Go Big,” has recently expanded into the print brokerage business.

Elite President Chad McCullough said business held steady in 2008 and the first part of this year, but he has doubts about the rest of the year. He noted that, in this economy, his company is forced to look closely at expenses and “take a look at pricing” for clients.

Still, although business is slowing down, Jen Grant, senior vice president of sales and marketing, said it is a good time to plan ahead.

“The desire to make a big statement, as with a building wrap, will outlast the bad times,” she said. “We have 33 building locations in Las Vegas now for wraps, and we’re using this time to seek additional sites, just to be ready.”

Alan Waxler, owner of the Alan Waxler Group of destination services companies, said today his company “must deal with the business we have, not the business we want.” His company’s fleet of luxury limousines and coaches has been trimmed with the sale of some of the older models, but the company continues to purchase new vehicles as needed.

The good news: Waxler’s company was told a couple of years ago that it would have to vacate the property it currently leases just west of the Strip. However, the economy has put the landowner’s development plans on hold, so, for the time being, Waxler is able to stay put.

“We believe there will always be a need for quality vehicles and impeccable service,” he said, “so we aren’t changing our business model.” Waxler added that the current economy “has made clear to many people the value of a job.”

With headquarters now in Las Vegas, Judy Venn & Associates, provider of models and talent for booth staffing, has seen long-time customers stick with her company, but, owner Judy Venn said, “instead of three models, they might just be ordering one.”

With 39 years of contacts and preferred status at many shows, Venn’s company still is honing its sales pitch by noting the cost-effectiveness of staffing a tradeshow booth from a local market, rather than bringing people from company headquarters. Venn said her company has a longer talent list now, more than ever waiting for the return of tradeshow spending.