1. Enhancing Stakeholder Value Enables Show Growth
Endorsed by:
Advocacy Committee
Our Objective for this presentation is to
Educate you(show organizer) on your exhibitors experience at your show
Educate you on how the exhibitors are actually getting charged at your show vs. what you may think is published in your show kit
Association or Show Organizer Needs
Solutions and Recommendations

2. Meeting Objectives
Exhibitor Need
ROI-Show Service Cost Justification
Lack of audited attendee data
Association or Show Organizer Need
Sell out space
Sponsorship dollars
Minimize cost to operate show
Solutions/Recommendations
Progressive General Service Contracting Models
Case Studies of Existing Shows

3. Society Ecosystem
General Service Contractor (GSC)
Charges exhibitors to make up for discounts to society (electrical, rigging, material handling,
etc.)
Exhibitors
Decrease space, logistical costs go up to cover discounts $
Society Revenue
Membership
Registration $’s
Exhibit Space
Industry Sponsorships
GSC Discounts on meeting logistics
Exhibitors are competing for funds vs. other marketing channels
Often Exhibitors commit to booth size before costs are known
Exhibitors are being challenged to do more with less
Procurement is asking vendors to cut costs
Rate of increase – can not continue
Associations/Organizers negotiate Exhibitor costs (>60% of Exhibitors’ convention budget)
Societies
Request more from exhibitors in sponsorships, and raise sponsorship rates for tech suites, etc.

4. Association /Show Data Dramatic increase over 10 year period-1999-2009
Definition of Drayage/Material Handling: Short distance movement of goods or materials within a storage area, involving loading, unloading, palletizing, de-palletizing, etc.
Very important to explain this slide: These are the average rates for Drayage (Material Handling), ST labor, OT labor and DT labor taken out of the TS week annual survey and then compared to the union actual cost increases over same time frame and the CPI over same time frame.
Sources:
Retail Rates and 2009 TS Week Survey Reports
Los Angeles, Chicago, and Las Vegas
Labor Costs – Union Contracts

5. Association/Show Data
Add the drayage bar from slide 12 so it could be percent increase
* Source: 2009 and 2013 TS Week Reports for general labor cost and drayage per CWT crated direct to show.
* Source: Local Union Contract
* GC averages from San Francisco, Los Angeles, Chicago and Las Vegas. These costs are for all contractors whether GC or EAC.

6. Why all the additions to drayage?
259%

7. Convention Cost Breakdown
Actual Data from large Healthcare Company
This as compared to the industry averages that CEIR posted in August of 2012: 36% Exhibit Space, 17% show services which include drayage and labor, 14% is travel and entertainment, exhibit design 11% and shipping is 10%.
Over 30% of costs unknown at time of booth space contract
Show Organizer negotiate 67% of costs (exhibit space, labor, & drayage)
*Other Exhibit Related Includes: Customer Education, Direct Mails, T & E, Promotional Items, etc.

8. GSCs Business Model Shift
Now in the design, build and rent business
Tie in exclusive services – to corporate clients
Shifting costs to exhibitors who do not use them for non exclusive services; result is uneven application of exclusive service charges.
Discounts/Rebates given to win the entire corporate program
Results:
Reduced competition
Negatively impacting the industry
Associations unaware of the discounts given
No benefit to association
Exhibitors now need help from the show organizer to control and manage these runaway costs on exclusive services
They are willing to invest more in sponsoship and space if the costs are justified

9. Solutions Game Changers – Material Handling
Pay for material Handling on time & materials basis – incorporate into exhibit fee: Auto Industry
Bring exclusive services (drayage) in-house: PMMI
Eliminate all surcharges (overtime and special handling) – incorporate blended rate: AHA, APSC, AAPC, AFCOM
Charge per trip or based upon time & materials vs. weight: Several Corporate Events
Add David Audrain’s show into the equation

10. Solutions More Game Changers
Stop cost shifting - pay full price for services, just as exhibitors do (vested interest)
Incorporate costs for discounted items (aisle carpet, signs, etc.) in exhibit space fee rather than into drayage fees
Share costs for discounted items amongst all GSCs & EACs
Bring general contracting in-house - control rates and service levels
Freedom of choice - eliminate exclusives; bring in competition
Needs to be transparency in pricing
Need to eliminate 0 balance invoice from General to Show Organizer-will be surprised at how low this cost is in comparison to the increases in exclusive service cost by the general contractor.

11. Thank you!
Ultimately we are proposing that the Exhibitor is willing to spend more on sponsorship and space if they can justify the cost to senior management. Currently the costs are unjustified.