OPINION |
|||
|
and ask whether they would like to meet buyers who are interested in their product lines but did not visit their stand . Then , set up contact with those potential buyers . This could never be done economically by humans dredging through hundreds and thousands of pieces of data at show after show . It can only be done via AIpowered systems , which are programmed to find exactly these sorts of links and preferences . This is not about the ageold ticking boxes on visitor cards .
Our historic systems exist because they make money But let ’ s get back to why we historically do what we do . Why do we fill in floor plans ? And why do we , by and large , have set rates for square metres ? ( There are several exceptions which have dynamic pricing based on location – but it has yet to convince the industry .) And why do most companies operate their subscription systems – otherwise known as ‘ rebooking ’? The underlying reason is simply that this model can be very profitable and can run without an excessive number of staff . A large , successful , wellrun show with a turnover of say £ 7m can operate with perhaps a director , six sales staff , two marketing staff and the equivalent of one ops person over 12 months . Yes , there is a backroom overhead – finance , HR , buildings management – which is necessary for the company
|
to operate . But the operating margin is likely to be north of 50 %.
Our model is the Netflix model Our model is in many ways the Netflix or easyJet model . It works because there is no need to debate pricing with each customer . It works because a wellrun show will rebook at least 80 % of its revenue for next year at this year ’ s show and not have to start with an empty floor plan . It works because we can talk with visitors via a variety of electronic means and transmit to them a comprehensive set of instructions and information - including getting them to print their badges ( thus saving registration staff ). We operate a system , which can work very well because we have everyone in the same place at the same time for three or four days . It would be perfectly possible to have a different model . One where we talked far more to most , if not every , exhibitor about what we could do for them and worked to provide those needs – and charge more as a result . But the financial downside is obvious .
We would need far , far more competent and able staff . This is not to say that such a model – with far greater staffing levels – would not be more profitable than our current model . I simply don ’ t know , and unless someone tries it with some larger events over several years it is simply guesswork .
|
What we have today is a methodology which ( fortuitously rather than cleverly ) happens to generate high margins because labour costs are low compared with the potential revenues once a show reaches a certain size . There are two models here which could compete with each other . The model which involves approaching most exhibitors and discussing what they need and what else the organiser can offer has the consequence of higher staffing levels . If we take a 500-exhibitor show with 10 staff , how many more would we need to make the model work ? US and German shows can have 2,000 exhibitors . The potential cash consequence of not tying up 80 % of them in advance on site is difficult to calculate . As much as we might believe our exhibitors love us , ‘ out of sight is out of mind ’ has traditionally been a good mantra .
It is foolish to think established truths cannot be challenged However , just because this model seems to work so well for most of us , it does not mean it cannot be changed – and perhaps dramatically . I could give many examples but the one I like is Hertz . For at least 40 years it had a basic model . The customer would book a specific car at a specific time and the car would be made available for her / him
|
– usually at an airport . This model didn ’ t change . There was much inefficiency and 20 % of customers didn ’ t turn up , leaving the car sitting on the lot . Then an alternative model occurred to someone . The customer could broadly define a category ( SUV , small saloon etc ) and when they arrived at the Hertz lot they could go to that “ section ” ( Gold Card , Premier , Small ) and just pick whichever car they preferred from that row . Very few customers cared about the exact model , it transpired . And Hertz could simply replenish the “ SUV section ” or the “ Gold Card ” section as soon as it became short of available cars . As a result , the amount of man-hours spent dealing with a customer whose exact car hadn ’ t been prepared largely disappeared .
If you ’ ve an idea , please bring it to CloserStill or Nineteen We mustn ’ t assume that we cannot materially change , improve , vary and innovate the trade show business . It took Hertz 40 years to make its change . We got to our current model by chance – believe me , no one worked it out . And thus there is no reason to assume that this is the only , or the best , model . Like things , new ideas come along and will usurp the old certainties . I don ’ t doubt that someone has an idea which could have just as big an impact on exhibitions . If you do , bring it to CloserStill or Nineteen first , please .
|
34 — Autumn |