FLEXIBLE RECOVERY

Poised as we are to emerge from the worst recession most of us have ever seen, we must still face and overcome a few challenges. Some venues, contractors and organisers alike, have managed the recession by cutting rates and offering discounts. For them trying to get back up to ‘rate-card’ will be their challenge. For the rest of us, our challenge will be competing with them, holding our rate and building on these foundations. The issue is further compounded by exhibitors who now have adopted the habit of committing later and by a new realisation that whilst they had originally reduced their space requirement for budgetary reasons, find that they still had a good show with a smaller presence and therefore why would they now need to increase their space when a smaller stand still met their goals? These are just a few of the issues we need to address before we can push our businesses forward into the new era.

So the question is how to we better manage exhibitors who have been used to a ‘deal’, who have been taking smaller stands with little apparent consequence, in an environment where discounts exist and who are still reluctant to commit until just before doors open?

It’s quite interesting to see a parallel in industries outside of our own. Some brands had maintained their rates whilst others were on a discount mission. How do the discounters now justify increasing their rates and how do those who have maintained their rates still show competitiveness in their markets? The key appears to be flexibility. They either need to justify their rate or add value in order to counteract their competitors undermining their proposition. Some players in the motor car industry are now ‘upgrading’ the spec and engines when you pay ‘rate-card’. Airlines are offering companion deals and extra air miles. Hoteliers are offering complimentary breakfasts or theatre tickets. The pattern is clear – if you want your clients to adhere to rate card or indeed to commit earlier, you would do well to think of how you can add value and entice them.

There is a whole raft of potential ‘value items’ you can add to your offer in order to secure your margin protected early booking. These can range from hyperlinks and enhanced catalogue entries to speaking or sponsorship opportunities and banners, extra storage or early bird incentives. If you do not already have one, it would be worth your while brainstorming a list of possible extra value services and products you could offer on a case by case basis. It is important because not everyone will need this, and no two exhibitors will view their worth in a similar vein. The secret is to establish what you have that you can provide that costs very little to you to offer and yet is worth a great deal to your exhibitor. Things that cost you as much as they are worth to the exhibitor are not great offerings. As an example negotiating a road fund licence on your next car is pointless as that will cost the dealer as much as it is worth to you. Instead ask for your next service free, some extra mats, an upgrade to your stereo and finance or warranty offers as these will be available to the dealer at cost or at minimal cost and worth much more to you than the cost of the road fund licence. In this way, hyperlinks, logos, banners, speaking opportunities and so forth should be at the top of your list as these typically cost you much less than they are worth to the exhibitor. Get creative and get those bookings rolling in early!