1 Comment

The Long, Hot Summer…A Good Time to Regroup & Re-strategize

2010
07.15

  Certainly it’s been a hot one so far and as George & Ira Gershwin wrote…and Janis Joplin sang, “Summertime, and the livin’ is easy.”

It’s during these temperate times when many association members and clients are in vacation mode.  And while meetings, tradeshows and special events are less frequent than in the spring and fall, we as professional event producers and suppliers should take the time to regroup and re-strategize.

Regardless of the recent (supposedly) positive pointing economic indicators, unemployment continues to rise and business in almost every American based industry is down.  As Steven Hacker, CAE, President, International Association of Exhibitions and Events (IAEE) mentioned in his June 2010 Association Meetings magazine article, The State of the Exhibitions Industry: It’s Not Simple, “Once again, the experiences of 2008 and 2009 demonstrate that the exhibitions industry is a mirror image of the industries served by our events.”  Obviously, the same can be said for meetings, conventions, and special events, i.e., as business is slumping, participation in the majority of events is down.  Bottom line is companies just cannot afford to spend money to send people (or at least as many as they used to in the past) to events.

So while it may be difficult for association executives, meeting planners, trade show producers, special event coordinators, or supplier partners, to directly influence participation in our industry events (short of making participation fees and/or services free…which would drive us all out of business), there are lots of more positive things we can be doing during these challenging times that will help our businesses.

Strategic Planning

I’m sure many of you (especially association executives) have participated in some type of strategic planning process.  The process itself is fairly straight forward.  An outside facilitator (this is one of those business activities, like survey development and compilation, where it’s best to utilize outside expertise) works with the management team from an organization to prioritize a doable number of business initiatives. The concept being that an organization can’t do everything on its “wish list”, so it’s better to prioritize three to five initiatives and then figure out what resources, i.e., financial and personnel, will be needed to accomplish them.  Definitive timelines are also applied to the initiatives. 

Typically, strategic planning includes short range initiatives (one to three years), and also longer range goals (five to ten years).  However, in today’s economic quagmire, I would think that an organization would focus on shorter range initiatives.  And keep in mind, the strategic planning process isn’t just for trade associations or professional societies.  corporations (big or small) should definitely consider this process.  If you do decide to move forward with strategic planning, consider engaging an outside facilitator to maximize unbiased participation.  It will be money well spent and keep the ship pointed in the right direction.  Two strategic planning facilitators I recommend are;

Buz Buzogany, Buzogany Associates, www.buzoganyassociates.com

Harrison Coerver, Harrison Coerver & Associates, www.harrisoncoerver.com

Survey Members or Clients

I’ve received a number of surveys from the member organizations I belong to.  Recently, the Professional Convention Management Association (PCMA) sent me one having to do with ethics within the industry.  Also, the Association Forum of Chicagoland sent me a survey asking me what programs they might offer to benefit supplier members, like me. 

Surveys are an excellent way to accomplish two things.  First, you continue to stay in touch with your members or clients.  And secondly, you can obtain valuable feedback.  This is an excellent time to do both and the process is easy and inexpensive with on-line programs such as www.surveymonkey.com, www.zoomerang.com, etc.  A professional survey and research company I recommend is:

Linda Wing, Premier Research Solutions, www.premierresearchsolutions.com

Update Website & Develop/Reorganize Social Media Strategy

Many of us neglect to update our Web site content from time to time.  I don’t know if there’s a recommended schedule, and it doesn’t need to be a total overhaul, but certainly a refresh every quarter or so would be a good habit to get into.  As well, if your organization does not have a social media marketing strategy in place, you need to start developing one.  If you are already using social media to market your business, now might be a good time to evaluate how it’s working for you and adjust anything that needs adjusting.  I have an excellent resource to recommend for Web site development and social media strategy:

 Brian Basilico, B2b Interactive Marketing, Inc, www.b2b-im.com

Consider Outsourcing

This is also a good time to think about how your meeting and/or tradeshow staff is being utilized.  Are there strategic projects you would like them to start investigating, but they don’t have time?  Perhaps it might be a good idea to consider outsourcing certain event-related projects which could free up some of your staff’s time for more strategic initiatives.  Not to sound solicitous, but there are plenty of experienced folks out there (EXPOexpert included), and it’s a buyer’s market, so the price is right!

Keep Up Sales & Marketing Efforts

When times are slow and money is tight, it’s tempting for organizations to cut things like advertising, sales and other marketing initiatives.  However, I think that would be a huge mistake.

Consider the story of Procter & Gamble during the great depression of the 1930s.  While most companies were cutting advertising budgets, Procter & Gamble actually increased its advertising budget.   They realized that despite the economic mess, people still needed household products…like the soap they produced.  Through targeted advertising to women via radio shows based around their products (these eventually evolved into television soap operas), they not only increased their revenues, but improved their customer base and brand image.  Procter & Gamble understood the power of message management.

    Similarly, the meeting, tradeshow and special events industries must continue our message management with campaigns to encourage event participation.  Certainly there are some campaigns out there, i.e., IAEE and the Center for Exhibition Research (CEIR)—“Exhibitions Mean Business” and the Convention Industry Council’s (CIC) “FACE Time. It Matters” (www.facetimematters.org).  But more is needed and we as individual companies within our industry must do more and continue to keep advertising, selling not only our products and services, but the message that ”face-to-face marketing is the most cost-effective way for American industries to sell.

So, while we enjoy the long, hot summer and times are a little slower…regroup, re-strategize, and keep positive.  Thanks for reading and I welcome your thoughts and comments.

P.S.  Here’s a funny little video about “teamwork” I’d thought you’d enjoy!

           

Tags: , , , , , Category Consulting, Meeting Planning, Special Events, Tradeshow Management |

2 comments

Marketing Opportunities Outside the Exhibit Booth

2010
06.15

Business is kind of slow these days, so in addition to doing some volunteer work at my kids school, I’ve been keeping myself up to speed on what’s going on in the world of meetings, tradeshow and special events by reading as many of the industry magazines, web sites and blogs as possible.   Not only do I enjoy the reading, but it helps me pick up on interesting trends.  One particular trend which I think is worthwhile to write about has to do with event producers creating additional marketing opportunities (other than the traditional means of sponsorship and advertising) for supplier partners outside of the traditional exhibit booth.

If you haven’t read Bob Dallmeyer’s interview with Karen Malone in Trade Show Executive Magazine’s May 2010 issue, titled; Shaking Up Tradition, I would strongly encourage you to do so (http://tradeshowexecutive.com/RecentIssues.asp). Karen is the vice president of meeting service for the Healthcare Information and Management Systems Society (HIMSS) headquartered here in Chicago.  Karen and the team at HIMSS have been doing some great stuff in terms of creating new opportunities for supplier participation at HIMSS events.

HIMSS is one of those cutting edge groups who view virtual events as an additional marketing opportunity for their supplier partners, as well as a way to generate revenue for the association.   Although virtual events have been around for years (I think I saw a presentation on virtual trade shows about 15 years ago when I was at SmithBucklin), they seem to be gaining traction now.  Perhaps it is because the technology has improved so much, and undoubtedly it’s because of the way Gen X and Y communicate nowadays.  Whatever the reason, many event producers now generate virtual events.  The real “buzz” word seems to be “hybrid” virtual events, meaning that the virtual event is meant to complement and/or promote a face-to-face event…not replace or compete with it.   Typically hybrid virtual events take place prior to or after the face-to-face event.  Many hybrid virtual events occur while the face-to-face event is being held in order to capture attendees who cannot travel to the physical event. 

HIMSS has also created other marketing opportunities for their supplier partners outside of the booth during their live face-to-face events.  One of those opportunities is what HIMSS calls, “The Meeting Place,” where exhibitors rent fully furnished meeting rooms away from the show floor to meet with customers, hold focus groups, or sales meetings.   These rooms come complete with a receptionist and refreshments, and exhibitors can rent them by the hour, day or week.  This initiative has been highly successful for HIMSS and is well received by both the exhibitors and attendees. 

Additionally, HIMSS works with its exhibitors to create other “outside the booth” targeted opportunities such as hosted “Lunch and Learn” programs, “Breakfast Briefings”, and “User Forums.”  Exhibitors select who they want to invite and provide the content.   HIMSS is an excellent example of a group who understands and listens to their customers (exhibitors and attendees) in order to create win-win ideas to accommodate everyone’s needs.  And if this openness to change and new ideas has also helped enhance the association’s bottom line, all the better!

   Another interesting trend I have been reading about, which is somewhat complementary to creating supplier marketing opportunities outside the exhibit booth, is that suppliers want year-round access to potential customers (see April 2010 issue of EXPO Magazine, “What Exhibitors Really Want” http://expoweb.com/article/what-exhibitors-really-want). 

Many organizations already have a select number of year-round “strategic business relationships” with suppliers (alliance partners, etc.).   I think this brings to the forefront a need for event producers to redesign their current “sponsorship” or “partner” models, which in the majority of cases provide sponsors with access prior to, or during the event.  For organizations that haven’t capitalized on this “year-round access” concept, I believe there’s an opportunity (especially now) to expand the “out of booth” supplier opportunities (and revenue opportunities for the event producer) on a year-round basis.  These opportunities allow suppliers to connect with potential customers more frequently without commercializing the event producer and/or the event itself.

The bottom line is this.  If exhibitors (customers) are asking for additional marketing opportunities outside of the exhibit booth, and year-round access to potential customers, then event producers must put on their thinking caps and come up with creative ideas to accommodate them.  After all, a happy customer is (almost) always a repeat customer.

Thanks for reading and I welcome your thoughts and comments.

Tags: , Category Consulting, Meeting Planning, Special Events, Tradeshow Management |

4 comments

Let’s Restructure Material Handling Rates at Trade Shows

2010
05.24

While we all struggle to increase participation in meetings, tradeshow and special events, the issue of making exhibitor participation in trade shows more affordable has been making headlines…particularly here in Chicago.

   The biggest complaint I generally hear from exhibitors is the cost of material handling, also known as drayage.  It’s difficult for exhibitors to understand why it sometimes costs more to have their crates unloaded from a truck and moved to their booth, than it does to ship them across the country.  There is more to material handling service charges than simply unloading the freight from a truck and moving it into an exhibitors booth (also included are removing the empty crates from the booth once they are unpacked, storing them, returning them at the close of the show, and then loading them out onto trucks). However, I believe the current trade show material handling cost model is broken and outdated.

Presently, the material handling cost to exhibitors from general service contractors (GSC) is based on a dollar amount charged per hundred pounds, or per CWT (which stands for cart weight).  A CWT is a unit of weight measurement equal to exactly 100 pounds (a hundred weight), created and used by U.S. merchants since the late 1800s. Traditionally, this measurement is used by large common carriers in rating charges for freight.  It is also used by GSCs in the trade show industry.

I suppose it’s easy to understand why the GSC community initially adopted from the trucking business the CWT measurement for exhibit freight.  It was established and already in place, so GSCs (who came along long after trucking) found an easy unit of measure based on freight weight that they could bill from.  But is trucking freight across the country, and GSC material handling for trade shows an apples-to-apples comparison of services? 

I would argue they’re not.  However, GSCs have been using this billing model since exhibitions began, and exhibitor revenue from material handling constitutes approximately 75% of the GSCs profit on a trade show.  Knowing this, what can we do to restructure the costs and billing metric for material handling to make exhibitor participation more affordable?  I suggest that event producers and general service contractors give serious consideration to the following.

  • Change the general service contractor’s current metric of charging per hundred pounds (CWT.) for material handling to either a “per square foot”, or “time and materials” charge.
  • Change the general service contractor’s current business model so as not to rely on material handling for up to 75% of their profit margin. This would require industry acceptance by event producers and all GSCs, because if we ask general service contractors to lower material handling pricing, they will then need to charge the event producer for other items which have not traditionally been billed to event producers (or perhaps billed at a deeply discounted rate), such as show management decorating, furnishings, graphics, carpeting, custom booths, shipping, etc., and also bill for GSC employee planning time, travel expenses and/or charge the event producer a “management fee.”

While I realize that charging for material handling based on square footage or time and materials (as opposed to weight) are not new ideas, I thought it might be interesting to outline a couple of examples to stimulate some ideas and input. 

As you read on, please keep in mind that every show is different and there are a myriad of variables that can affect the general service contractor’s pricing, i.e., size of show, dates and location of show, type of show, etc.   As I was putting the following examples together, I was imagining a tradeshow of approx. (400) booths held in Washington, DC.  Let’s assume the show has approximately 250,000 lbs. of exhibitor freight, and if material handling rates were based on the traditional model of per CWT, the rate would be a flat (both warehouse and show site) $75 per hundred pounds.  The examples aren’t perfect, but hopefully they will help us all think about possible options for lowering the cost to exhibitors. 

Material handling pricing model based on square feet

A few footnotes regarding this model:

a)       The cost per square foot would be negotiable between the general service contractor and the event producer, i.e., lower or higher depending upon labor costs in a particular city, size of show, dates and location, length of contract between event producer and GSC, etc.

b)      To encourage exhibitors to purchase more exhibit space, the square footage pricing could be “tiered”, i.e., exhibitors with more space might receive a lower  per square foot material handling price

c)      The material handling costs can either be packaged into the event producer’s booth fee cost…or billed directly from the GSC to the exhibitor

Exhibitors with 100 square feet (10’x 10’ booth) – 300 square feet

  • Crated or palletized freight = base rate of $2.25 per square foot… (or $225 per 10’x10’ booth)
  • Loose boxes or cartons which need to be palletized for fork lift or brought in on flat carts = Add $1.00 per square foot to base rate
  • Load in or load out on overtime = Add $1.00 per square foot to base rate for each occurrence

 Exhibitors with 301 square feet – 600 square feet

  • Crated or palletized freight = base rate of $2.00 per square foot
  • Loose boxes or cartons which need to be palletized for fork lift or brought in on flat carts = Add $1.00 per square foot to base rate
  • Load in or load out on overtime = Add $1.00 per square foot to base rate for each occurrence

 Exhibitors with 600 square feet or more

  • Crated or palletized freight = base rate of $1.75 per square foot
  • Loose boxes or cartons which need to be palletized for fork lift or brought in on flat carts = Add $1.00 per square foot to base rate
  • Load in or load out on overtime = Add $1.00 per square foot to base rate for each occurrence

 Another model might be to have material handling costs billed to exhibitors on a “time and materials” basis. 

Material handling pricing model based on “time and materials”

a)      Time—assume the total cost of a worker to handle exhibitor freight is $85/hour.  This includes the cost the general service contractor must pay the worker per hour, including vacation and benefits.  Also included is the general contractor’s employee time to supervise the labor, payroll costs, and profit.  Assume for each 10’ x 10’ booth, it requires (1.5) workers for (1.5) hours to unload the exhibitor freight from a truck and move it into the exhibitors booth, removing the empty crates/boxes from the booth once they are unpacked and store them, and finally return the empty crates/boxes at the close of the show, and once they are packed, load them out onto a truck.  This example also includes costs for special handling, i.e., loose boxes, and miscellaneous non-forklift driving freight personnel, i.e., checker, etc.

The straight “time” cost per 10’ x 10’ booth would be $191.25

If on overtime, add 25% ($47.81) or…$239.06 per 10’ x 10’ booth

b)      Materials—assume that the general service contractor rents (some GSCs own this equipment, but let’s assume they are rented) three (3) forklifts per (100) booths. (400) booths = (9) forklifts.

Cost of forklift per week…approx. $500 x 9 = $4,500

Cost of delivery/pick-up…approx. $400

Cost of fuel/surcharge…approx. $75 x 9 = $675

       Sub total = $5,575

Plus…standard 30% contractor mark-up of materials  =$1,672.50

Total materials cost for (9) forklifts = $7,247.50 divided by 400 booths = $18.12 per 10’ x 10’ booth

Total cost for 10’ x 10’ booth on straight time based on “time and materials” :  $191.25 + $18.12 = $209.37

c)      The cost per hour would be negotiable between the general service contractor and the event producer, i.e., lower or higher depending upon labor costs in a particular city, size of show, dates and location, length of contract between event producer and GSC, etc.

d)     Because this model is based on actual time and materials utilized, I would not provide a discount to exhibitors who rent larger space.

e)      I do not see this model being packaged into the event producer’s booth fee cost, but rather billed directly from the GSC to the exhibitor

In order to make either one of these models more affordable for the exhibitor, the general service contractor base rate, e.g., cost per square foot, or cost per hour, must be structured low enough so that the total material handling cost to the exhibitor would be at least 50% lower than the anticipated material handling cost to exhibitors utilizing the existing CWT pricing model.  Otherwise we would just be swapping out “units of measure.”  And, as I previously outlined, in order for the base rate to come down, it must be accepted and encouraged industry wide.   Event producers have to be open to a model where GSCs charge for what have typically been complimentary show management items and for GSC personnel time and travel.

These are just my initial ideas to spark thoughts and conversation.  I realize that material handling is just one facet in the current trade show business model that needs to be addressed in order to make exhibitor participation in trade shows more affordable.  I hope that many of you out there feel the same way.  The current tradeshow model is outdated, overpriced and desperately needs to be revamped in order to attract customers (exhibitors) and flourish. 

Thanks for reading and I welcome your thoughts and comments.

Tags: , Category Consulting, Tradeshow Management |

1 Comment

Asking Attendees and Exhibitors for Input

2010
05.05

My current career path allows me to work with several client events (both corporate and association) and my assignments vary.  Sometimes I’m involved with the advance planning, other times I’m hired to only to work on-site, and sometimes I’m just brought in to handle “one time” projects such as writing an exhibitor prospectus, or researching the feasibility of starting a new event.  In virtually every one of these business ventures, I’ve been extremely lucky and grateful to work with a lot of very talented and nice people.

Having said that, I have to admit that something has been bothering me.  I am continually surprised that several of my clients (past and present) don’t keep up-to-date with obtaining customer feedback from their face-to-face marketing events.    Whether an annual meeting, trade show or corporate event, I have seen situations where extremely valuable customer information (which could have/should have been used by the event producer to help make strategic business decisions moving forward) was not gathered. 

We all know that businesses in other industries (outside of the face-to-face event production arena) utilize market research, consultants, and obtain customer feedback via surveys, focus groups, telemarketing, etc.  So why do some event producers fail to communicate with their customers and gather business critical information?  Why don’t we ask our customers (because that’s what they are) what they need and want? 

  Is it because the event producers are too busy?  Is it that they get too tied up in managing event logistics, that they can’t see the forest through the trees?  Are they afraid talking to customers will add more work to their already full plates?  Some of these reasons may play a part, but I think the real culprit is “fear of change.”

Let’s face it; most people don’t like change.  We get into our day-to-day (or should I say, event-to-event) routines and it’s easy to say, “This is how we’ve always done it”, or “the board, committee or executive director would never approve that.”  However, in today’s high-speed, super technological environment, being open and able to change quickly based on customer wants and needs is a prerequisite for any successful business.  So, event producers beware:  Albert Einstein defines insanity as, “doing the same thing over and over again and expecting different results.”

We should be asking our customers (attendees and exhibitors) what they want and need…on an ongoing basis. What I mean by “ongoing” is before, during and after each event.  For example, I remember reading about an event producer who, prior to their event, created an interactive environment between registered attendees and speakers.   Registered attendees were able to supply questions to the speaker in advance of the event so the speaker could address the questions during the session.  And this interaction was “live” right up until the session.  What a great way to keep the session cutting edge and to provide the speaker with information so he or she could deliver the most pertinent up-to-date information in a session.

In terms of obtaining on-site feedback, many of you have probably read about the use of Twitter during educational sessions to provide live feedback between the audience, the speaker, the event producer…and even other interested people not attending the conference.  It’s here, it’s being done now and it’s a successful way to obtain feedback.

Another commonly used method for obtaining customer feedback on-site is to have small “by invitation” feedback lunches with attendees and/or exhibitors to talk about their impressions.  Most people are very receptive to these as long as they’re not too long and a skilled staff member or facilitator keeps things moving.  Also, it’s a nice way to say thank you to participants.

  There’s always the most traditional method for obtaining customer feedback: the survey.  Surveys can (and should) be done before, during and after every event.  I have found the best way to obtain a large response rate is to offer some type of personal incentive for completing a survey (a chance to win an iPad, a trip to some nice location, etc.). The free conference registration typically offered just doesn’t seem to cut it anymore.

What’s also great now is the variety of inexpensive survey tools on the internet, for example, Survey Monkey.  In addition to being cost-effective, these services have nice templates that can be emailed, and can handle some basic tabulation for you.  One important thing to keep in mind when developing survey questionnaires is to hire someone with market research experience.   Most event producers do not have the market research experience and knowledge to write non-leading, objective, unbiased survey questions.  So, budget some dollars and hire a market research professional to help.  It will be well worth your money if your questionnaire is more precise and to the point, and you will achieve definitive results.  Exhibit Surveys is a well-known market research company with a great reputation for solid work.  And there are other smaller firms, like Premier Research Solutions, founded and run by my long-time friend, Linda Wing with whom I worked at SmithBucklin.

The bottom line is this.  We all need to stay in better touch with our customers so that we don’t lose sight of why they are participating in our events.  The customer you never hear from after an event…and who never comes back…is the worst possible scenario.  But that doesn’t need to happen.  Reach out, stay in touch and ask the customers (attendees and exhibitors) what they want and need from your event in order for them be successful in their businesses.  And then…be sure to deliver it…and you and your event will be successful as well.

Tags: , , , , , Category Consulting, Meeting Planning, Special Events, Tradeshow Management |

1 Comment

Education is King & Get Involved in Your Industry Associations

2010
04.08

I was thinking about how tough it must be for those young people who are just finishing college.  Imagine how discouraging it must be as they attempt to enter the workplace, only to find minimal employment opportunities.   A recent article in the Chicago Tribune stated that the jobless rate for 16 to 24-year-olds is 18.5%.  Although my kids are now in elementary and high school, if they were in junior or senior year of college, I would tell them to stay in school and work towards a graduate degree.   I mean, what else would they do if they left school in today’s job market?  I suppose they could volunteer their time with some worthy cause, but then again there’s probably a good chance they’d sit around the house, eat, and bum money.

I think there’s an analogy for those of us in the meeting, tradeshow and special events industry.  Unemployment continues to rise, the job market is dismal, and growth in events is slow.   Why not make the best of it by using our time to educate ourselves about important issues within the industry, and participate in the activities our industry associations offer?

The industry associations I belong to, i.e., Association Forum of Chicagoland (The Forum), Professional Convention Management Association (PCMA), International Association for Exhibitions and Events (IAEE), and the Green Meeting Industry Council (GMIC), all offer education and other ways to get involved too.     

The cool thing about utilizing industry associations is that we can accomplish these two things, education and participation, for free…or at least at a reasonable cost.  For example, The Forum recently offered a very informative session, titled, “Pushing Your Vendors: How to Get Affordable Local, Organic Foods for Your Meetings and Events.”  It was free and was an excellent session.  They have another free upcoming session for members, “Protecting Your Organization from Fraud.”  Not only can you learn something at these sessions, but you can network and meet people.  Whether you’re a planner or supplier, meeting new people or reconnecting with those you already know from the industry is a must.

PCMA, IAEE and GMIC hold educational sessions every other month or so.  I’ve seen all types of good topics including; “Virtual Events: Fad or Fabulous?”, “Calculating the Return on Your Show Using the ROI Toolkit”, “Top Industry Leaders on the Future of Meetings – Where is our Industry Headed Today?”, “Creating Surveys to Maximize Effectiveness”, and the all too familiar and mysterious for some “Social Networking.”  Although half or full-day programs run a little more, the cost for breakfast or early evening association-produced sessions is usually very reasonable.  The presenters I’ve seen are very good, and the attendance is a nice split between planners and suppliers, which produces great networking.   

Nothing against Webinars…which are great and allow remote access to education, but in our business…nothing is better than face-to-face interaction.  Some other things we all should be doing more of while things get back up to speed is getting more involved with our industry associations by volunteering for committee work, or involvement with an association’s special interest groups (SIGs).  I made a conscious decision at the end of last year to get more involved in the groups I belong to.  I joined the Chapter Relations Committee of my local chapter of PCMA.  I also have volunteered to join the Golf Tournament Planning Committee (maybe a little selfish indulgence here) of my local chapter of IAEE, and I’m serving on the board and membership committee of the local chapter of GMIC.   

You’re probably thinking…either this guy must not have any work, or he’s independently wealthy.  Well, let’s set the record straight that the latter is definitely not the case.  And, my “regular job” is doing fine, except like all of us I could always use a few more accounts. 

In terms of time commitment to get involved with your industry associations, done correctly, i.e., everyone does a little; committee, board or SIG participation in these groups does not have to be an overwhelming obligation.

Through these opportunities, we can give back to the industry and the associations by sharing our talents and connections.  We also reap the benefits of new friendships with other members, and gain exposure within the industry by participating.  What a win-win for everyone. 

Hopefully we’re on the road to economic recovery, but we can use the slower time wisely.  I suggest we take advantage of this time to get educated, participate, network and make good use of the membership dollars either you or your organization pays the industry associations for your membership.

Tags: , , , , Category Consulting, Meeting Planning, Special Events, Tradeshow Management |

No Comments

Greening Your Events

2010
03.17

  In the spirit of Saint Patrick’s day, I wanted to share some thoughts about why…even in an environment of budget cuts and job scarcity in our industry…we should work hard to continue to support and implement sustainable practices and the “greening” of meetings, tradeshows and special events.

The concept of environmental responsibility and sustainability have been around for some time now, but we have a long way to go in terms of 100% participation by the meetings/tradeshow and special events industry.  But with that said, there are lots of great sustainability initiatives going on, and I’m sure you’ve read numerous articles in the industry trade journals about what some association and corporate groups are doing.   But rather than rehash those, I’ll share with you some recent personal experiences. 

  While attending the PCMA Midwestern Chapter March Educational event at the Chicago Hilton, I noticed a couple of simple, yet important things related to sustainability in the meetings environment.  During the educational sessions, the hotel provided water stations with eco-friendly plastic like cups made out of some type of corn based product. 

Apparently, these cups can be thrown out and will disintegrate quickly in a land-fill…as opposed to regular plastic cups which I think take like 90+ years to disintegrate…if ever.    Additionally, the hotel had recycle bins throughout the public areas and in the meeting rooms.  These are small things, and there may have been more I overlooked, but obviously the Chicago Hilton is making an effort by implementing sustainable practices and being environmentally responsible with their group meeting business. 

And here’s the beauty of this example at the Chicago Hilton and why it’s is win-win for everyone.  As a meeting planner who decides or influences where meetings are Chicago booked, obviously I noticed the eco-friendly plastic like cups.  And, it made me feel good that the Chicago Hilton was using them.  If I noticed them, you can bet that many other planners in attendance at the PCMA meeting did too.  So, even though the eco-friendly plastic like cups may cost the hotel a little more money than regular plastic cups, the Chicago Hilton, by branding itself as practicing sustainability and being environmentally responsible (which a lot of people care about and think highly of these days), may in fact influence me or other planners in our decision to select them versus another hotel to place a meeting.  And, as affirmed by the age old adage, “people buy from people they like.”  So, not only is what the Chicago Hilton is doing great for the environment, but it’s also smart business. 

I also recently attended a session sponsored by the Association Forum of Chicagoland, “Pushing Your Vendors: How to Get Affordable, Local, Organic Foods for Your Meetings and Events.”  The presenter was Greg Christian from gregchristianconsulting.com.   Recognized as “Chicago’s Conscious Caterer™,” Greg is a professional chef, caterer and entrepreneur, author (he has a new book, Food and Forgiveness) and a pioneer in the foodservice industry’s zero-impact movement.   His message is very moving and inspiring.   Because of a variety of reasons, including unsustainable farming practices, and creating a tremendous amount of waste, Greg feels that the food service industry has been a destructive force and has been using up a lot of the earth’s non-renewable resources at an alarming rate. 

Greg believes that the meeting, tradeshow and special event industry (especially because over 5 billion dollars is spent annually on catering) can have a tremendous positive impact on the environment by selecting foodservice providers that use seasonal, and locally grown organic foods.  And, that if event producers begin this requirement process early on, i.e., at the request for proposal (RFP) stage, with suppliers (hotels, convention center, caterers, etc), the requirements and process will be easier to implement.  And most importantly, the positive impact event planners and suppliers can make on our community, and our environment.   

Additionally, Greg has been instrumental in working with the Accepted Practices Exchange (APEX), an initiative of the Convention Liaison Council (CIC), to write policy and procedure focused on bringing together best practices and standards related to food and beverage for green meeting and events, including sample RFPs.  For more information about APEX, visit http://conventionindustry.org/apex/inprogress.htm

Here’s a  video of Greg talking about his journey and message.

        

And last, but certainly not least, I recently received an invitation to join and participate in a relatively new (6 year old) membership-based professional organization, the Green Meeting Industry Council (GMIC).   As described on their web site, www.greenmeetings.info, “The Green Meeting Industry Council (GMIC) is the premier global community solely dedicated to sustainability in the meetings and events industry, not only through education but also by spearheading research, policy and standards.”

GMIC’s membership dues are very reasonable ($185 per year for individual membership, and varying levels of participation for supporting business memberships) and a good friend of mine, Barbara Connell with the American Society for Gastrointestinal Endoscopy (ASGE), is going to be heading up the Chicago chapter as president.   

Following are the organization’s mission and vision statements, and a short video from the organization’s founders.  If you’re interested in getting involved and doing more in terms of implementing sustainable practices and “Greening your Event”, it might be a really good idea for you to join GMIC. 

       
 

GMIC Mission:
The Council seeks to transform the global meetings industry through sustainable practices which incorporate environmental considerations throughout all stages of a meeting in order to minimize the negative impact on the environment. The Council will promote environmentally responsible strategies through the collaborative efforts of meeting industry stakeholders, balancing economic, environmental, and community objectives. Your support is an integral component of our success.

GMIC Vision:
According to the Green Meeting Industry Council , a green meeting incorporates environmental considerations throughout all stages of the meeting in order to minimize the negative impact on the environment.

In conclusion, if you’re not doing so already, there’s lots of easy ways to start implementing sustainable practices in your meetings, tradeshows, and special events.  For example, event organizers can utilize eco-friendly name badge holders, and reducing printed promotional and on-site materials.  Additionally, organizers can request that their supplier partners utilize things like sustainable carpet at trade shows, recyclable trash liners, and that food service suppliers use water stations with the aforementioned eco-friendly plastic like cups, recycle, and compost.

It’s all good and helps the planet too. Take care and I welcome your thoughts, comments and ideas.

Tags: , , , , , Category Consulting, Meeting Planning, Special Events, Tradeshow Management |

6 comments

Using a “Flip Video” at meetings, tradeshows, and special events

2010
02.22

Although there are several manufacturers of digital mini-camcorders including; Sony, Canon, Veho, Coby, Kodak, etc., and they’ve have been on the market for a few years now, there seems to a renewed interest in them…especially with a brand called, “Flip Video.”  And lucky me…this past Christmas my wife and kids gave me one and it’s quite a cool little gadget. 

For those unfamiliar with a Flip Video, it’s about the size of a small digital camera, feels lighter in weight, and has up to 120 minutes of recording time.  There are two different sizes, i.e., the Ultra and an even smaller pocket-sized version called the Mino.  For an additional cost, both versions offer high definition models and the Mino has a less expensive model with 60 minutes of recording.  I have the regular Ultra and the lens is great and the picture is very crisp.  All of the Flip Videos are easy to operate and the controls are basic, i.e., on/off, record, play, zoom-in/zoom-out…that’s it.  They are powered by either two standard AA batteries, or built in rechargeable batteries.  They all have a flip out USB arm, which makes connecting to your computer very easy. 

Also included are cables to connect to your TV, and built-in software called, FlipShare, which enables you to edit videos, add music, put multiple clips together, capture still shots and upload videos to FaceBook, MySpace, YouTube and other video sharing sites.  You can also share and email videos with family or colleagues.  For more information on models and specs, go to www.theflip.com.  Oh, and by the way, although this blog may sound like it, for the record I swear I’m not a Flip Video sales rep.  I just happen to think they’re really sharp.

So, how can we use a Flip Video at an event?  I think there are several purposes.  First off, they’re pretty inexpensive, so for larger meetings or trade shows, event producers may want to consider purchasing three or four Flip Videos and having staff members “cruise” the event and interview both attendees and exhibitors with some prepared questions and gather testimonials.  I could even see giving some number of these to select exhibitors to use during a trade show, and then collect them after the event.  Kind of like the bride and groom leaving disposal cameras on the tables at a wedding reception, and collecting them afterwards to gather some great candid pictures of the friends and family. 

With the exception of some shy individuals, most people are happy to chat and share their thoughts.  These comments can then be edited into a promotional clip about your event, and put on your web site, or sent out as a link to a YouTube video in a promotional email to prospective attendees and exhibitors of your next event.  

If you don’t mind forgoing the snappy bells and whistles, then Flip Video beats the heck out of hiring an expensive video production company.   And quite frankly, I think many viewers (especially the younger crowd) like the more realistic, YouTubeish look.   And to my audio visual friends, please don’t take this post the wrong way.  There certainly is a place for professionally produced video at events.  I’m just trying to present another option for those who may not have the budget for professional video production. 

Flip Video can also be used by event producers to document signage and other on-site management activities.  For example, because the Flip Video can be attached to a tripod, staff, board or committee meetings could be recorded and emailed to participants.  For those association staff folks out there, perhaps this could replace taking and typing meeting minutes?  But, you’ll want to double check with your attorney on that.  Also, Flip Videos could be an inexpensive way to produce training videos in the workplace.

Following is a Flip Video compilation I put together on FlipShare and uploaded to YouTube featuring IAEE’s recent Wiffleball Tournament at McCormick Place.  It was a fund raising event for the chapter’s charity, The Gift of Carl Foundation.  I added John Fogerty’s song, Centerfield, from my iTunes library to be played softly in the background.  

               

As you can see, the Flip Video is a pretty nifty little device.   I would encourage you to pick one up and have some fun with it.  I think you will find that there are lots of opportunities to capture information and experiences at your events, and in your home and family life too.  Take care and I welcome your thoughts, comments and ideas.

Tags: , Category Meeting Planning, Special Events, Tradeshow Management |

4 comments

Revitalizing participation in events by reducing pricing and eliminating cost-shifting

2010
02.01

By Jack Thompson, CMP, CEM, EXPOexpert, inc.

Until the middle class gets back to work and has money to spend…regardless of whether economic soothsayers tell us the recession is ending…business is still sucking wind.  This situation has brought further various problems into the spotlight, problems which have been issues in the meeting, tradeshow, and special event industry for some time.   However, as my friend, Bob Dallmeyer, recently stated during a presentation at the Midwestern Chapter of IAEE, the resurfacing of these issues is good because it gives us an opportunity to see if something beneficial can come from healthy dialogue.

Help with pricing!

We have seen the retail market respond to the economy by implementing dramatic discounts and price reductions.  This is really smart.  After all, if they didn’t cut costs, very few people would be able to afford their goods and they could price themselves out of business. 

  With the exception of the hotel community, which seems to be lowering room rates, it seems to me that many event producers and suppliers do not fully understand the gravity of the current economic situation and its effect on attendee and exhibitor participation in their events.  Some event producers and suppliers are holding pricing at current levels (perhaps at the previous years’ pricing), but it seems that few are actually reducing prices, and many are actually increasing customer costs.  

I’m sure that some of you will disagree with me, because you think discounting or reducing customer pricing leads to a perception of decreasing the value of the product.  However, in the current business climate I don’t think we have a choice but to reduce pricing (without sacrificing service) to encourage attendee and exhibitor participation and business growth.  Specifically;

  • Facilities should reduce rental fees to event producers, as well as other costs governed/managed by the facilities, such as electrical, plumbing, telecommunications, etc.
  • Other event related suppliers, i.e., general service contractors, audio visual, catering, etc., should reduce pricing to event producers, attendees and exhibitors
  • Event producers should reduce attendee registration fees, exhibit space fees, and sponsorship costs

This might seem like taking a few steps back to move forward, but I believe that’s exactly what we must do at this point to stimulate participation.  Event budgets must be adjusted accordingly.  This means not only reducing expenses, but adjusting revenue expectations in order to revitalize attendee and exhibitor participation in the most direct way possible, i.e., make it more affordable for people to take part.

Bodies in the beds

Here’s a quick story to convey the importance of obtaining increased event participation versus revenue.  Several careers ago I was working in sales for the Hyatt Regency Chicago (HRC).  The director of sales and marketing was an older gentleman named, Tony d’Eca.  Tony was a super nice guy (as well as quite a character) who had many successful years in hotel sales and marketing before coming to HRC, including opening several of the mega hotels for Hyatt, Hilton and Sheraton around the country.  Tony was a great teacher and one of the most profound things he taught me was in terms of the “critical mass” needed for business to grow. 

  HRC was already a mega hotel (2,000+rooms), and had just added a new tower of guest rooms with lots of additional meeting space.  Although the Hyatt corporate office was clamoring for the sales teams across the country to increase the average group sleeping room rates, Tony’s philosophy was, “bodies in the beds make up for a multitude of sins.”  What he meant was that if the sales team worked first to increase the occupancy of hotel (as opposed to trying to get the highest possible group sleeping room rate), the hotel would became more popular and full of activity.  Then, once the “buzz” about HRC was in place, the sales team could gradually work to increase the group sleeping room rates with fewer objections from prospective customers.

The philosophy and approach were beneficial to everyone involved.  First, event producers were able to get great deals for placing their groups at the hotel.  Secondly, the hotel was busy and all the employees were working.  And finally, by increasing occupancy first…and then gradually increasing the average group room rates, the sales team was able to meet the corporate office revenue projections. 

This story is a perfect example of the basic marketing concept of supply and demand.  When demand is high (when the event or hotel is perceived as the place to be), and supply is low (once the hotel is busy, or the event is well attended) then pricing can be increased…but not before this basic marketing principle is met.   Hopefully we can learn a lesson from this story to apply in today’s marketplace.  If we don’t put the “bodies in the beds”, or people in the aisles, it will be extremely detrimental to the face-to-face marketing/event industry in both the short term and the long run.

Stop the freebies aka cost-shifting

  “Cost-shifting” is one of those dirty little terms that many don’t understand, and those that do understand it, don’t want to discuss it.  The term means the transferring of costs from one place, or person, to another.  Cost-shifting is a major culprit contributing to rising costs in the face-to-face event marketing business.  The two simplest analogies are; a) there’s no such thing as a free lunch, and b) every time someone else gets involved in a negotiation or a production process, the price goes up.

As most of you know, event producers typically negotiate two sets of pricing with suppliers.  First is the event producer’s pricing, commonly called “show management” items, such as staff hotel rooms, space rental, signage, etc.  Secondly, but as importantly, event producers negotiate pricing with suppliers on behalf of their attendees and/or exhibitors for items such as hotel room rates, furnishings, material handling, etc.  Every time hotel sleeping rooms, signage, tradeshow furnishings, and numerous other items are “negotiated” as “complimentary”, there is a real cost to them that somebody has to pay.  Unfortunately, many times the costs get shifted to the wrong party.  So where exactly are the costs shifting from, and to whom?  

Costs are shifting from event producers as they “negotiate” these items, and I’ve done this too.  Although it may appear that the costs are shifting to and being “absorbed” by suppliers, don’t fool yourself.  The vast majority of the time this is not happening.  The costs are actually shifting through the suppliers on to… you got it…the ultimate customer, the attendees and exhibitors.  And a super no-no occurs when an event producer negotiates “complimentary” or discounted items for themselves, and to obtain them, knowingly accepts higher pricing for their attendees and/or exhibitors.  Although it should be said that many times this travesty happens unknowingly due to the event producer’s lack of experience.

Specific examples of cost-shifting (under the guise of negotiating) in the meeting, tradeshow and event industry are;

  • Event producers and suppliers agreeing to and making use of commissionable sleeping rates versus net, non-commissionable rates to pay for supplier services, or other concessions such as complimentary sleeping room allotments, i.e., 1 per 50, complimentary meeting space, etc.
  • Event producers and suppliers agreeing to and making use of “complimentary “ show management items at their tradeshows such as, entrance units, furnishings, signage, shipping, material handling, etc.
  • Event producers and suppliers agreeing to and making use of the sharing of the revenues obtained by suppliers from exhibitors at the event producer’s tradeshows. This type of arrangement is usually contingent upon the supplier(s) hired to work on the show or at a facility, and may involve the event producer, the general service contractor, the catering company, the audio visual provider, etc. 
  • Facilities retaining exclusive in-house suppliers wherein an agreement calls for supplier to share revenue with the facility, leading to higher pricing for attendees and exhibitors.

These are just a few of the most common examples of “cost-shifting.”  I’m sure there are others that are more clever and less transparent.   It seems to me that an obvious one way to reduce attendee and exhibitor pricing, and increase their participation in our events, is to stop the practice of cost-shifting. 

Would this mean the end of negotiation as we know it?  Of course it wouldn’t.  Event producers will need to talk with several suppliers to determine what the best deal is for both themselves and their attendees and exhibitors.  However, it would be good to take the “freebies” or “comps” out of the negotiation process, because they’re not really freebies.   Putting an end to cost-shifting would help put the costs back to where they should be, or maybe get them away from where they shouldn’t be… with our attendees and exhibitors.

  In order to stop the practice of cost-shifting, event producers, suppliers and facilities need to openly address this problem.  As stated earlier, like a dirty little secret, or a dysfunctional family member, it is ignored and accepted for what it is. And, like the corruption we see today in all levels of government, perhaps cost-shifting within the meeting, tradeshow and event industry is too ingrained a practice to reverse without some type of legislative or legal action.  However, if it is allowed to go on “business as usual”, it’s hard to imagine that reduced prices to encourage participation of attendees and exhibitors will occur anytime soon.

It seems that the task of increasing participation in meetings, tradeshows, and special events is dependent on three things.  While we don’t seem to have much control over getting the middle class back to work, as meeting, tradeshow and special event industry professionals, we absolutely do have control over lowering pricing and stopping cost-shifting. 

Here’s a little video, that although does not specially address cost-shifting per say, adds a humerous perspective to the customer/supplier relationship.  You’ll need to decide if any of the character’s portrayed remind you of any of the parties identified in this blog, e.g., event producers, suppliers, or facilities.

I hope these thoughts will stimulate some discussion and action to help encourage participation in meetings, tradeshows and special events.  What do you think?  Your comments, ideas and suggestions are extremely welcome, so thanks for reading and please comment.

Tags: , , Category Consulting, Meeting Planning, Special Events, Tradeshow Management |

5 comments

How to involve Gen Y in conferences, tradeshows, and special events

2010
01.18

By Jack Thompson, CMP, CEM, EXPOexpert, inc.

 As a parent of a teenager, I’ve been thinking a lot lately about how kids today communicate.  What a different world it  is.  We had the annual 26 volume World Book Encyclopedia, they have the world-wide web, 24 x 7x 365.

How can a baby boomer like me (between the ages of 46-64), or a Gen Xer (between the ages of 30-45), get the attention of Gen Y…and maybe get them to come to one of our events?

Certainly there are advantages to us for them to participate, specifically;

  • Inexpensive Labor
  • Increased Attendance at Events  & Perpetuity of Industry/Profession
  • Potential for Sponsorship Opportunities/Revenue
  • Advancement of Marketing and Communication Methods and Tools

Inexpensive Labor

Many conference and tradeshow professionals utilize students studying from the hospitality/travel/meetings industry to assist in advance or on-site with their events.  Another resource is to utilize students studying within the industry/profession of the events.  For example, the Modern Language Association (MLA) utilizes language, literature and humanities students from local colleges and universities to assist them on-site at their annual convention.  This is a very cost-effective way to obtain temporary help, and if you’re not doing something like this now, you may want to explore your options.  After all, if you need temporary help in advance or on-site, what better group of people to hire than those already interested in either the hospitality/travel/meetings industry, or the industry/profession your event is focused on?

Increased Attendance at Events & Perpetuity of Industry/Profession

Many conference and tradeshow producers already offer a deeply discounted registration fee for students.  For example, two of the professional groups I belong to, the Professional Convention Management Association (PCMA) and the International Association for Exhibitions and Events (IAEE), offer a student registration fee at their annual meetings.  At PCMA’s 2010 annual meeting, the planner member registration fee was $625, whereas the student member registration fee was $205.  And, at IAEE’s 2009 EXPO! EXPO!, the organizer member registration fee was $ 599, whereas the student member registration fee was $275.   This encourages students (at least local students) to attend and increases overall attendance and face-to-face interaction at the event.  If your association or organization is not offering discounted (or in some cases complimentary) student registration fees, I would strongly suggest you consider doing so.  It’s a win-win for everyone involved.

As well, and perhaps this is obvious, but encouraging the participation of the younger generations in various industry/professional events helps to continue the development of that industry into the future.   For example, as reported by EXPO Magazine in September 2009, the producers of Lightfair International (LFI) created an outreach program to attract more students to its annual architectual and commercial lighting tradeshow and conference and inform them about career opportunities in the lighting industry.  Approximately 400 college students attended LFI 2009 at special discounted student  pricing.   And, LFI isn’t alone in engaging Gen Y.  Another example outlined in the December 2009 issue of Trade Show Executive Magazine, is the Association for Equipment Manufacturers (AEM), who created a “construction challenge” geared towards high school students to introduce them to a variety of careers within the construction industry.   Over 2,500 students participated in the challenge, and finalists attended and competed at the CONEXPO-CON/AGG show.

Potential for Sponsorship Opportunities/Revenue

I think it’s pretty easy to envision an excellent opportunity for suppliers to gain recognition and image enhancement by sponsoring registration fees (and perhaps even travel expenses) for students within their industry/profession to attend industry conferences or tradeshows.   This type of sponsorship has been described as “cause marketing”, and the value proposition is the “feel good” factor.  That is, sponsors are recognized by the attendees for supporting a good cause…and helping cash strapped students become involved with their industry before actually entering the job market.

Advancement of Marketing and Communication Methods and Tools

There’s been quite a bit written about how Gen X & Y communicate and what are the best ways to reach them.  Smart phones, texting, Linkedin, Facebook, Twitter, etc., are here to stay.  Event organizers must embrace and learn how to best utilize these tools…or fall behind.   As we continue to encourage the involvement and participation of the younger generations in our events, like it or not, we will have no choice (and this is probably a good thing) but to update our marketing and communication tools and methodologies.

 

Clearly, the upside to more participation by Gen Y in meetings, tradeshows and special events is great, and the downside seems, well…nonexistent.

What do you think?  Your comments, ideas, and suggestions are extremely welcomed.  So thanks for reading and please comment below.

Gen Y Student Resources

For hospitality/travel/meetings industry students, some possible resources may be;

Chicago

DePaul University-School of Hospitality Leadership

Roosevelt University-School of Hospitality & Tourism Management

Kendall College

Indiana

Purdue University-Hospitality & Tourism Management

Michigan

Michigan State University-The School of Hospitality Business

Wisconsin

University of Wisconsin-Stout-Department of Hospitality and Tourism

New York Area

Cornell University-School of Hotel Administration

Washington, DC

George Washington University-School of Business, Tourism & Hospitality Management

Las Vegas

University of Nevada Las Vegas-Harrah Hotel College

Texas

University of Houston-Conrad N. Hilton College of Hotel and Restaurant Management

Delaware

University of Delaware-Department of Hotel, Restaurant and Institutional Management

Orlando

University of Central Florida-Rosen College of Hospitality Management

Providence RI, Miami, FL, Charlotte, NC & Denver, CO

Johnson & Wales University

To find students within a specific industry/profession (similar to what MLA does at their annual convention), contact appropriate departments within local colleges or universities in the location of your event.

Tags: , , Category Consulting, Meeting Planning, Special Events, Tradeshow Management |