Rick Dobson knows how to make money. The National Association of Broadcasters' Senior Vice President of Conventions and Exhibitions has used sponsorships, co-op advertising, value-added programs, show merchandising, registration bag inserts and shuttle bus placards to increase revenues at his events. He's considered nearly every sales angle possible. Is there anything he won't peddle? "If it's not nailed down," says Dobson, "we'll sell it."

Even the industry's newest newcomers understand that there are only two ways toenhance your bottom line. Like Dobson, you can increase revenues, or, perhaps theharder task, you can decrease expenses. Ideally, you'd like to do both. Unfortunately, the concept is much easier to understand than implement.

The first step in improving your bottom line is to determine your show's currentfinancial condition. Profit margins vary throughout the industry, and are influenced by the show type, size, position and scope. "A one-third profit margin is now the standard for trade shows of our size," says Michael Hough, Principal of the A/E/C Systems show, a 125,000 square-foot computer and management show that attracts 25,000 attendees from the design and construction industries.

Even higher standards are applied to larger expositions. "I'd find 50 percentunacceptable for large shows," says Dobson. "I think you'd be looking for 60-plus. From the association side, we've become less dependent on dues and more dependent on non-dues revenues. Trade shows provide that funding, so the pressure to improve revenues is greater now than ever."

Increasing revenues
So how can you increase revenues? Don't look at a booth rate increase -- unless yours is very low because times are tight for exhibitors, too. Instead, find new revenue-generating ideas that innovatively serve your exhibitors and attendees. You need programs that provide value--added benefits for which people are more than willing to pay.

There are basically two methods for generating new revenue -- create new products and services, or implement new overall strategies. The latter includes large scale projects such as uncovering new audience segments and untapped exhibit categories. While both methods can prove profitable, it's important to remember that there must be a need for the new endeavor. Creating new products will only work as a revenue enhancer if someone buys what you're selling.

Finding new markets
"This year we've added an Engineering Document Management segment to our show -- which goes beyond our regular architect, engineer and contractor audience," says A/E/C Systems' Hough. "This year's show features EDM '93, with about 100 new booths. And we're already planning on about 300 next time."

As Hough demonstrates, finding new industry segments is one of the best methods for increasing revenues. Growing the show brings new exhibitors and new attendees into the picture. And although uncovering these new segments may take time and effort, the payoff can be very big.

Start by carefully observing what's already happening at your event. Are there four orfive new exhibitors representing a specialty in your industry? Is there a new type of buyer appearing more frequently on the show floor? Show surveys can also help. Askattendees what other types of products they'd like to see. Ask exhibitors who else shouldbe attending.

Paving the way for EDM '93, Hough and his team produced a direct mail piecespecifically targeted for the new exhibit prospects. They also sold EDM as anattendance enhancer for the established exhibitors. Adding an EDM conference to his educational programming also helped Hough draw more first time attendees.

Getting sponsor help
Tapping prominent exhibitors for sponsorships helps offset costs and attract newattendees, while everyone profits from the team effort. "For almost all our feature attractions and main events, we're looking at sponsorships," says Carol Bell, National Manager of Canada's National Marine Manufacturer's Association, producers of the Toronto International Boat Show. "It helps cash-wise, and tremendously increases general awareness in nontraditional audiences."

This year, for example, the boat show tied in with exhibiting manufacturers and the local media. Together, they beefed up the 340,000-square-foot event -- which includes a trade-only day followed by nine public days -- with a Superboating Sweepstakes that promoted the show through a five-boat giveaway. "Between the television, radio and newspaper coverage, we received more than $100,000 in media time and space," Bell says. "As a result, our attendance was up 16 percent."

Special display areas
Capturing the current interest in environmental issues, the Toronto International BoatShow is considering an Accessory Showcase for its next exposition. To be included,exhibitors' products would have to be environmentally-friendly, and either a new lineor an industry innovation. "It would help us in several ways," says Bell, "both withexhibitors, who have new products, and in terms of image and people's perception."

Bell estimates the display space, decoration, security and promotional costs at $5,000to $7,000. "For a promotion, it wouldn't be expensive, and it's one of those ideas thathelps keep a show fresh."

Consolidating exhibitors' products into a single display area also appeals to EpicEnterprises, a San Diego-based management firm operating six annual events. Amongthose is the Specialty Equipment Market Association -- Automotive Industry AssociationShow, a 500,000-square-foot event which features a "FirstTime Exhibitors Showcase."New exhibitors display a sample product in the area, along with a placard directingattendees to the company's booth.

"This has proved highly successful," says Lewis Barnes, Epic's Sales Vice President."It's caused a substantial decline in exhibitor drop-offs from year to year. It givespeople a chance to see the newest products, and we've made sure first-timers feel asthough they're part of the show."

Competitions
Competitions are a popular special event at many shows - and a money-maker at some.During the Epic-owned International Silk Flower and Accessories Exhibition in LasVegas, exhibitors submit floral arrangements for a juried competition. Judging is doneblind, then winners' names and booth numbers are posted with their entries. "That areabecomes quite fascinating and enchanting," Barnes says. "The contest helps to enhance the show with visual beauty."

A new competition will also be unveiled at the A/E/C show this year. Design andconstruction exhibitors who use 3-D video for building walkthrough simulations wereinvited to enter tapes of their work. Show organizers will compile the entries into a 30-minute presentation to be shown continuously in the exposition hall. About 25 exhibitorsentered the competition for a $50 fee. "It costs us $2,000 just to edit the tape, andprobably another $2,000 to show it," explains Hough. "But it's an investment. We'll sellthis as a benefit of attending the show, and have a sign nearby soliciting entries for next time. Maybe next year we'll have more interest and realize increased revenue from it."

Merchandising
Show merchandising has become big business, with attendees buying everything fromsweatshirts to educational books and videos. "We have two or three stores per show, andour largest is probably 3,000 square feet," says NAB's Dobson, whose association ringsup more than $250,000 in gross sales during the show's four days. "The margin iscertainly less than 50 percent, but it adds to the bottom line."

The stores are so successful that they're included wherever the association holds atelevision, radio or multi-media show -- including such sites as Tokyo, Singapore andBarcelona. The shops rely on a "very comfortable" retail environment offering productssuch as logo pen-and-pencil sets and microphone flags bearing station call letters. Dobsonsays a special "convention line" of clothing often sells out early becoming a statussymbol for attendees and exhibitors.

At the Toronto International Boat Show, attendees anticipate visiting the 30,000-square-foot "Mariner's Marketplace" as part of their admission. In two separate retailareas, shoppers buy everything from boat fenders to the latest electronic navigationequipment. "People look for the stores, so we put them in areas that are less desirable toexhibitors," says Bell. "It's been a good way to move crowds from place to place."

Innovative promotions
Recognizing that active buyers often come to shows through exhibitor invitations,Dobson has devised a program to reward exhibitors for promoting the show throughtheir ads.

Exhibitors advertise in any publication they choose, and the association supplies camera-ready art, information and anything else needed to convey theshow's message. The association then awards points, based on ad size and frequency, "like an airline mileage program," Dobson explains. Exhibitors exchange accumulated points for such things as show-directory or show-daily advertising, and registration inserts.

"We launched the campaign late for this year's show, so we don't have a dollar figure onthe exhibitors' interest," Dobson says. "But the response has been great. A lot ofexhibitors have said they're extremely pleased with the innovative approach.

Publishing
Besides encouraging exhibitor advertising in other publications, many show managershave launched their own advertising-based publications. Among them is Pat Parsons,Executive Director of the Flexible Pavements Council of West Virginia and Show Managerfor The West Virginia Equipment, Technology, Design Exposition. "Our program bookdeveloped into a 64-page magazine with 114 advertisers and four-color covers thisyear," exclaims Parsons. "The response has just been phenomenal."

The ETD Expo magazine includes articles on the show, its sponsors and industry topics. Afour page insert with the show schedule, exhibitor map and index is produced after themain publication goes to press, enabling organizers to make last-minute changes andadditions as booth sales close. Parsons, who edits the publication, says advertising salestotaled $25,000 this year, up an impressive 33 percent from last year. "It costs usquite a bit to put out the magazine," he says, "but we make more money with it eachyear."

After the show, Parsons sends any remaining magazines to advertisers, exhibitors and "honor exhibitors" non-exhibiting firms that pay $100 to be listed in the publication. "We sell 80 to 100 'honor' spots each year, for another $8,000 to $10,000," Parsons says. "Every year, one or two honor exhibitors convert to regular status, so we see growth there as well."

A/E/C Systems also employs a magazine format for its show directory, tailoring oneissue of its bi-monthly industry publication for that purpose. While regular issues run48 and 54 pages, the expo edition easily expands to 64 pages, complete with $100,000in advertising revenues. "This issue makes money for us, but the others don't," saysHough. "We're in it to make money, but also to support the industry and keep membersup to date on our show."

Creative advertising
Show managers have developed other promotional products as revenue sources, some assimple as placards, ad panels or banners aboard show shuttle buses. "We've sold thebuses at many shows," says Paul Mackler, CEO of Conference Management Corporation, aConnecticut based firm organizing 35 shows in 26 industries. "In larger shows, onesponsor could probably cover all the transportation, but we haven't done it that way. Welet more exhibitors in on the deal." Charges vary for such programs, depending on thetype of advertising, shuttle schedules and who handles production.

Mackler also finds postcard decks a popular exhibitor promotion. Often sent to attendeesbefore shows, cards can be tied to the event, act as a direct response vehicle, invite thereceiver to the exhibitor's booth or be used as a contest entry. "We always try toencourage exhibitors to be visible before the show," Mackler says.

"It comes back to more than goodwill. The more mileage you get from good exposure, themore recognition you'll receive -- which should translate into greater sales."

Again, costs depend on how aggressively you market the promotional product. The entireamount can be passed along to the exhibitor, or you can subsidize part of the cost andcharge a simple advertising fee. "There's really no formula," says Mackler. "You have tolook at the show and the industry, then decide on the best course."

Focusing on education
An increasing number of show managers view their conferences and seminars as a strongrevenue source. In 1989, for example, the American Meat Institute's annual showcharged a $25 registration fee with no educational programming. In 1990, Virginia-based Convention Management Group Inc. suggested adding an educational component tothe AMI show, and increasing the cost to $125.

"The registration revenue grew by 95 percent because we added something of value,"explains Haidee Calore, CMGs Sales and Marketing Vice President. "When you dosomething like that you usually have a drop in attendance. Instead, we had a solid 28-percent increase because of this and other improvements."

KoAnn Vikoren, Group Show Director at San Francisco-based Miller-Freeman Inc., alsofound educational programs to be a revenue boost in her Business Software Solutions andSoftware Development shows. Taking what was traditionally a three-day conference,Vikoren added another two days, for a week's worth of workshops. "We're selling thefive-day format to about 60 percent of the attendee base, and averaging about $1,000apiece," she says. "We started the expanded program because we wanted a high revenuesource, but it's also a better way to serve our audience."

Something for nothing
Giving attendees and exhibitors something extra doesn't necessarily have to pay offimmediately to be considered a money-maker. Exposition Manager Alec Dickey often putsthis principle into practice with the 400 exhibitors who attend the HelicopterAssociation International's annual show. "Whenever we set up the floor, we always havedead space or low traffic areas, and we're very generous in giving exhibitors that extraroom," Dickey says. "Almost invariably, they buy a larger space the next year."

Dickey uses the same technique to encourage attendance. He gives generous free passallowances to exhibitors, followed by deep discounts on additional tickets. "It's reallypaid off in the number of people exhibitors bring to the show," he says. "Usually, the exhibitors start off the next year by ordering more tickets."

Decreasing expenses
As any experienced show manager will tell you, decreasing expenses is more difficultthan increasing revenues. Presumably, you've already negotiated for the best services atthe best rates. But sometimes, a little can mean a lot. Here are some cost-cutting ideasyou can try:

Clean your mailing list. "The best list is your own list," says Hough. If you regularly maintain and qualify names, you can decrease the cost of contacting unproductive leads -- and eliminate the need for rented lists. By narrowly-targeting his prospects last year, Hough cut the mailing of his 32-page brochure from 225,000 to 75,000 "And we still increased revenues by one-third."

Produce your own materials. Helicopter Association International annually saves at least one-third of its costs by writing, designing and producing all promotionalmaterials in-house. "We're cheap as mud around here," says Dickey, "but we do 28print jobs a year. We save a lot doing it in-house."

Cut postage expenses. Move up production schedules to allow more mailing time and fewer first-class rates. Convention Management Group saved by sending all American Meat Institute show mailings third class.

Consider a mailing house. "Our mailing house allows us to give them a disk of our list," Calore says. "Mailing is their business. They're usually aware of ways to save that we're not."

Re-evaluate print quality. Does your industry warrant a four color show program, or could you wrap a four-color cover around black and white pages? A/E/C saved $5,000 by photocopying its exhibitor manual instead of printing it. "To go from spending $12,000 to $7,000 made a lot of sense," Hough says.

Use a print broker. Like mailing houses, print brokers can save you money with their industry knowledge. They can place your small-run mailer with a modest press, or find the huge web for your 100,000-circulation magazine. "Our print broker shops all over the country to find us the best rates," says Calore.

Consider binding options. Hough saved $1 apiece by going from a three-ring binder to a less expensive cover for the show's educational booklet. A/E/C attendees found the new workbooks better looking and easier to use.

Reuse signs. Parsons saw many of the same exhibitors returning to his ETD Expo year after year, and decided he could save their booth signs. Now, exhibitors turn in and reuse about 85 percent of placards on an annual basis. "At $7 a piece, we can save $1,000 to $1,500 a year," Parsons says. Velcro tabs allow for booth number changes.

Save badge holders. An ETD Expo post-show survey included a suggestion to recycle the event's 5,000 plastic badge holders. "Next year we'll set up a recycling bin at the door to collect them," Parsons says. "We'll save money, but it's worth even more because it shows our environmental concern."

Shop early. On-site orders can be like buying groceries at a quickstop shop: You pay heavily for the convenience. Take your time -- and get better prices -- by shopping inadvance. Staff members should justify all on-site charges not associated with legitimate emergencies.

Minimize meal hosting. "We were spending almost as much as we were taking in at conferences by serving meals," says Dobson. "Consider sponsors, or avoid meal times." Shut down shuttles. Transportation is vital when people are on the move. During slow periods, however, many show managers find ridership levels so low it would be cheaper to pay cab fares than operate shuttle buses. Consider sponsorships, as well.

Negotiate with suppliers. Your suppliers are a great source of cost cutting ideas. Sit down and review your old invoices with them. Ask them where you could save money. If you handle more than one show, try contracting services for several at once and realize a lower cost for each. This works as well with local printers as it does with your service contractor.

While searching for ways to enhance your bottom line, Hough relates one final thought --always look at the big picture. "Don't count the paper clips. A lot of people focus on thepennies while the dollars slip by."

This year in Las Vegas, for example, the National Office Machine Dealers Association, theNational Office Products Association and the Local Area Network Dealers will rollthemselves into one 800,000-square-foot show that should bring each group moremoney at less cost than they've ever realized before. "Traditionally, we each do our ownshows," says NOMDA Convention Services Manager Milli Teasley. "But this opens a newbase for us, and gives us all a real boost."

NOMDA will share half the space with LANDA, while NOPA exhibitors occupy theremaining space. Fixed costs such as on-site registration, transportation, opening nightparties and other events will be shared -- decreasing expenses for all.

Assuming the exposition goes as planned, all three parties should profit. Last year, bycomparison, NOMDA's own show included 250,000 net square feet of space. This year,for what Teasley estimates are half the costs in many areas, the group will benefit bymore than triple the floor space and double the attendees.

LANDA, too, will realize returns. Instead of focusing on setting up exhibition halls,hotels and transportation, association volunteers can concentrate on the attendees. "Forour efforts, we'll get a lot more than we normally would," says Assistant Director CindyFroehlich. "In some ways, it's better for us than doing our own show."

The combined exposition also serves exhibitors and attendees many of whom wouldnormally attend two separate events, explains Meg Ellacott, NOPA's Exhibit Manager."This reduces time and money spent travelling, setting up and participating in what willbe a much larger show," she says. "It makes perfect sense."

Sidebar:  Finding profits in programming

Old thinking." That's how Lee Knight explains flat-rate educational program fees. "It'sthe way show managers have always done it, and they haven't considered the revenuesthey could make by changing," says the Editor and Publisher of Exhibitor Magazine,sponsor of the Exhibitor Show.

Since starting the show six years ago, Knight has charged separately for each seminar.Go to 14, pay for 14 -- at this year's pre-show rate of $95 apiece. "It's a customer-driven plan that makes it easier for them instead of easier for us," Knight says. "It's thedecade of the customer, and you have to give them what they need."

As a revenue source, Knight's seminars are big business. But he also puts a lot into them.The program includes full, on-the-spot refunds if an attendee isn't happy with aseminar. Attendee badges are encoded with seminar numbers to allow admission into meeting rooms and track continuing education credits. Exhaustive speaker training workshops are held six months before the show. "We look at it as having a speaker faculty," explains Knight. "We even have a speakers' dinner the last night of the show for the 60 to 70 presenters."

In addition to the increased revenues, Knight says the program has a positivepsychological effect. "It positions us as the leading conference for exhibit professionals."