Folio: Plus

Folio: The Magazine for Magazine Management, Jan, 2002 by Bob Moseley

Your trade show is a success: now what?

So you have a successful trade show. Great. Celebrate. But don't sit back and relax. Successful trade shows have gone out of business because their originators didn't constantly monitor what the market and their competitors were doing, says Don Pazour, president and CEO, Miller Freeman Inc. "Two things can happen to an aging show," he says. "One is that the market basically matures. The other one is that the market turns left and you keep going straight. One is natural and you just have to deal with it; the other is self-inflicted." To avoid missing that left turn you should always ask, "What's next?" says Pazour. He recommends looking for the next step in four different areas: (1) Cloning: "Cloning works in the early stages where there are no competitors and the pace of development is not as rapid," he says. "It doesn't work when what you have from the start is a truly national industry event. In this case, if you go regional or go to another time of year, it doesn't fly." (2) Spin-offs: "We had a software d evelopment show," says Pazour. "Web development is a subset of that. The show was successfully spun off because Internet development is different in that it extends further into the user community." (3) Follow the market: COMDEX started as a dealer show, he explains. Then the purchasing influence changed. More high-end resellers and IT people were coming in. But, he says, COMDEX did a good job of following the market: "The show went from a dealer show to the world's greatest technology show." (4) Co-locate. This is when you agree to have your show and a competitor's at the same place at the same time. It works if your markets are different enough, but you have similar buyers. Both parties gain traffic and visibility.

Good negotiating is counterintuitive

Three years ago, Wilma Jordan, CEO and president of The Jordan Edmiston Group, was representing an entrepreneur who wanted to sell his company to a large corporate buyer. However, her client was so brash that he kept turning off the buyer with curt comments. Some 15 phone calls went by with Jordan always trying to "stay connected." Finally, she called the buyer and said, "If you give me this one point, I'll make sure you never have to talk to the seller again." Everybody laughed and the buyer gave her half the point. Your instinct, says Jordan, is to back away from antagonistic situations. But, she says, "If you stay connected, you'll push through the tense moments and get to where you want to go, maybe even get a laugh." This is an example of good negotiating being counterintuitive, says Jordan, who has conducted over 50 transactions worth more than $1 billion over the last two years. Here are some others: (1) Aim for victory. "I win, you lose, may get you a win sometimes, but not often," she says. "What you want is a win-win." (2) Bargain hard. Not always, says Jordan." Think more about problem-solving--because that, ultimately, will help both sides get the deal done." (3) Focus on your position. "Everyone is a little self-centered. But look at the other side's interests. Help them achieve their goals, and the chances of success are higher." (4) Create pressure. Sometimes that works, but usually it's better to create an environment where agreement can happen.

Keep conference costs under control

Conferences are costly, but there are ways to cut corners without affecting quality. Michael Hough, author of The Profitable Trade Show, offers these tips: (1) Don't pay high speaker fees. High-profile speakers should be used only when they will definitely add pre-registered attendees. Instead, look for lesser known, up-and-coming individuals. (2) Don't pay actual expenses for your speakers. Instead, offer a lump sum and let them make their own travel arrangements. You define who is eligible, but those not eligible could include, for example, exhibitors, media, consultants and anyone else who has to be at the show. (3) Don't print abstracts or produce CDs. Instead, post the presentations and handouts on your Web site and encourage the attendees to download them. (You must supply a password to conference registrants.) (4) Provide only the basic audiovisual and staging for a keynote address that features a vendor--they pay the extra costs for gilding the lily.

Pricing tips for trade shows

You don't want to price your trade show out of business by charging sponsors and exhibitors either too much or too little. Michael Hough, author of The Profitable Trade Show offers three critical tips: (1) When quoting the fee for a sponsorship, clearly specify whether the price does or does not include production, installation and dismantle. Typically, a banner or a poster wrapped around a column would not include these expenses, while an entrance unit or aisle sign on the trade show floor would. A sponsor (exhibitor) would not be involved in taking down the banner/column wrap in a public area-this has to be done by the decorator. And the decorator needs to be paid for this service. Many neophyte show producers don't realize this. (2) If you offer a discount for early booth payment, word it this way: "Amount due: $2,800. Deduct $200 if paid by September 1." Do not say, "$2,600 if paid by September 1." In the latter case, the exhibitor will fixate on "$2,600," and that's all you will get, even if the check ar rives in January. (3) Offer a corporate passport rate for your conference that allows unlimited attendees from the same firm.