Exclusives Hurt the Overall Industry

Dear Editor:

Re: “Service Contracting: The Packaging Strategy” (Aug. 3, 2009)

As executive director of the Exhibit Designers & Producers Assn., I am compelled to respond to your recent article.

EDPA believes that the way tradeshows are being produced and executed currently in the United States is leading to a decrease in tradeshow participation and a diminishing role in the global economy.

The value of face-to-face marketing is well-established and being proven everyday through refined measurement tactics. However, the business model for convention center events appears to be broken. It is a well known fact that exhibiting anywhere else in the world (with the possible exception of Russia) requires a fraction of a typical U.S. budget for the same space.

“Exclusive” services contracts exclude competition by definition (for material handling, electrical, rigging, etc.) and eliminate the competitive bidding and competition that make the U.S. economy the envy of the world.

This practice has inflated show costs, often resulting in the imposition of significant surcharges or fees (special freight handling, marshalling yard fees, etc.); has a direct impact on reducing exhibitor participation; and, has an overall dampening effect on the growth of attendance at tradeshows.

Ultimately, the “packaging” practices that you reported in your recent article run counter to the goals and aspirations of the show organizer and general service contractor – and cause our ever-increasing convention center space to be further underutilized.

EDPA is concerned about the practice of general contractors' “packaging” services by discounting their exclusive material handling service with other elective services.

This practice is inequitable to the majority of exhibitors, excluding competition and driving up prices. In addition, this practice is perceived as anti-competitive to the “third-party” services providers, and, as such, we are opposed to it.

The EDPA encourages face-to-face open dialogue between all interested parties on this very important subject to help U.S. companies and events remain competitive on the greater world stage.

Jeff Provost

Executive Director

Exhibit Designers & Producers Assn.

Letters to the editor of Tradeshow Week always are welcome. Please send them to Editor-in-Chief Michael Hart (by mail) Tradeshow Week, 5900 Wilshire Blvd., Suite 3100, Los Angeles, Calif. 90036; (by e-mail) hartm@reedbusiness.com; or (by fax) (303) 265-5098.