September/October 1990

Service Contractors

Making the right choices

Jim Faltinek and the staff at the National Sporting Goods Associationspent over a year selecting a general service contractor. As President ofthe NSGA, Faltinek recognizes the critical role contractors play in achievingeverything from the right "look," to a successful bottom line.

After first determining and prioritizing their own needs, the NSGA developeda "Contractor Evaluation Plan" which included a detailed bid specificationform, contractor critiques of their current show, formal presentations andonsite visits to other shows and contractor warehouses.

Although not every show manager has the time to develop such comprehensiveevaluation plans, the principle is nonetheless valid. Determining your needs,and matching your priorities to the capabilities and limitations of yourcontractor, will not only assure a well-run show with a minimum of surprises,but it will also pave the way for a working relationship in which both partieswill be satisfied.

Compatibility
Companies, like people, have personalities. For many show managers, thecompatibility between them and their contractor is a top priority. "Manyfirms will be able to handle a show's needs, but the chemistry between theirstaff and mine is a very personal thing," says Nancy King, Partnerof EMC2, a show management company in McLean, VA. "If the chemistrybetween us doesn't work, everything's a disaster."

Considering the amount of time they spend together, and the stress whichis put on the relationship by last-minute details and problems, most showmanagers evaluate compatibility in areas such as problem-solving skills,attitude, communication methods and personality styles. "Every companyhas a personality or attitude that separates it from the pack," explainsDan Mitchell, Vice President of Exhibit Aids in Boston. "It's likebuying a house. You want something that fits your needs, but also your personality."

To assess these intangibles, try to get a feel for the company and itsstructure. Is it low-key and conservative, or innovative and aggressive?Compare these styles with that of your show and your exhibitors. A high-techcomputer show with state-of-the-art exhibits will probably not mesh wellwith a "buttoned-down" contractor. Similarly, a conservative showmanager may not work well with a contractor that's whimsical and wild. ForFaltinek, the attitude must be enthusiastic. "I want my contractorto move into the show as if it's the only show they do," he says.

Carefully watching the contractor during the bidding process will reveala great deal about the company's "style. " Have they respondedto your stated needs, or simply provided a "canned" presentation?Have they cooperated and communicated well with your staff? Although somecompanies have a much different attitude after you've signed the contract,most contractors' proposals will reflect the general demeanor of the company.

After evaluating the type of company you want, the next step is to recognizethe type of person with which you work best. The account executive assignedto your show is like another staff member, and should have a compatiblepersonality. "It's like hiring an employee. Anytime I've made a mistake,it's because I haven't paid attention to my gut feelings," King admits.

Many show managers will check references on individual account executives.They talk with their peers to find out how people feel about that individual.Other show managers will be able to point out strengths and weaknesses they'venoticed in that person. How long has the account executive been workingin that position? With what size and types of shows is he or she most familiar?

It's not uncommon to see a show manager tour the convention facilitywith a prospective account executive. This will provide information on thatperson's knowledge of the hall, and familiarity with the convention servicerepresentatives: "If the account executive has a good relationshipwith the city and facility personnel, you know they'll all work togetherto accommodate your special needs," says Bill Jones, Senior ExecutiveVice President of Greyhound Exposition Services.

Your account executive is a lifeline between you and your exhibitors,and often other suppliers. But what happens when the account executive issick or out of town? You don't want to put your show on the line with justone person. Find out what kind of support team is available, and assesstheir level of competency as well.

Experience
Just as you need to ascertain the level of experience in your account executive,so too should the experience of the company be judged. Experience denotesstability and consistent performance. The longer a company has been in business,the more opportunities they've had to learn from their problems and successes.For many show managers, an established firm also provides a sense of security-- they will probably still be in business to handle a show contract twoyears from now.

Contractor experience within the host city is also critical to efficientlogistical operations because every city is different. According to DaleVan Ort, President of Freeman Decorating Company, "In Las Vegas thereis just one union, in New York you have to work with six different unions.You just can't go into a city and not know how those unions work."In addition, each facility has unique characteristics and problems withwhich a contractor needs to be familiar. Ask your potential contractor whatpercentage of their shows they work in that city. Or, better yet, ask thefacility manager which contractor works most frequently in that hall.

Years of experience may mean nothing if the contractor has handled fewshows of your size and type. "Every show has a different set of needs,and how well they match with the service contractor's strengths should beconsidered," says Butch Bartlett, President of Andrews-Bartlett ExpositionServices. "A medical show, for instance, with an emphasis on heavyA/V requirements and large meeting rooms, is a lot different from an equipmentshow with special move-in problems." A contractor experienced in yourtype of show can save time and money. Ask for a client list to help determinea contractor's depth of industry experience.

Show size is also a factor considered by most show managers when selectingservice contractors. "If you have a smaller show that doesn't requireall of the services of a large contractor, you might get better attentionfrom a smaller, local contractor," suggests King. Ann Harris, a ConventionManager at Smith, Bucklin & Associates, an association management firmin Chicago, voices similar concerns. "You pay for extra design andservices, and there's not always the budget for it," she says. On theother hand, smaller contractors have limited manpower and equipment. A tightshow schedule, during, or just before your show's opening, may tax theirresources.

In order to make the "perfect match," contractors advise showmanagers to describe their basic needs early in the selection process. Elaboratedesign plans or special equipment required for move-in, can then be comparedto contractor capabilities and equipment availability.

The result of all this self-evaluation is often a very detailed bid specificationform. Smith, Bucklin uses a 40-page booklet to assess contractor servicesfor all their shows. Prospective contractors may be less than thrilled atthe line item mentality such bid specs can create, yet these documents willeliminate many unwelcome surprises. "They hate it," Harris confides,"but you'd be amazed at the differences I uncover by using it."

See it yourself
Touring a contractor's facility often provides show managers with a goodindication about the level of organization and efficiency they can expect.Visit all the departments and pay attention to the prevailing atmosphere.If chaos seems to reign throughout the building, for instance, you may bedealing with a disorganized operation. Show managers warn, however, notto take anything at face value. A chaotic warehouse may simply mean thatthe contractor has several shows in various stages.

Visiting the exhibitor service department is usually high on the prioritylist. These are the people who will deal with your exhibitors on a dailybasis. Are calls handled courteously? Do staff members take the time toanswer questions and calm nervous exhibitors? If you're running a largeshow, and you don't see a computer in this department, you might want toask how orders are tracked.

Equipment availability and quality are key concerns for every expositionmanager. "Everyone wants their carpet and furniture to be brand new,"says Van Ort. If aesthetics are important, check the condition of the rentalequipment. Is their carpet matted and worn? Do all of their red drapes match,or is it obvious that different dye lots were purchased? Are forklifts well-maintainedand in necessary quantities to ensure backups will be available if a breakdownoccurs?

Finally, compare the in-house services offered by your prospective contractors.Although the trend among contractors is to become full-service operations,the definition of "full-service" can vary widely from one companyto the next. Beyond the basics, many firms are now offering in-house audio-visual,complete graphics departments and registration assistance. "These departmentsare your support during a show. You want to be able to call from the showfloor and have them respond to your needs within a couple of hours, notdays," explains Van Ort. One-stop shopping is a benefit for those whoappreciate fewer contacts and associated paperwork. According to Harris,"I prefer services to be in-house because I feel the contractor hasbetter control over them."

Nothing beats a first-hand look at your contractor in action for checkingpromises against performance. "We wanted to see work they had doneon other shows," says Faltinek. "We visited as many shows as wecould in the facility we'll be using."

Because the registration area makes the first impression on attendees,most show managers start their inspection in that area. Are the counterschipped? Are the graphics professional and easy to read? "I would lookat these public areas first to make sure they represent the 'look' I wantfor my show," advises Jim Caplin, Vice President of United ExpositionService Company. "Then I would go into the show and look at the aislesigns, and the condition of the carpet, furniture and drape. You want toget an overall impression of how the show looks."

Apart from aesthetics, the on-site check is a good opportunity to chatwith exhibitors about the level of service. Spending some time near theservice desk may also reveal the general attitude of both the exhibitorsand the contractor personnel.

The NSGA took their on-site evaluations one step further by invitingcontractors to visit their show and submit critiques. "Even more revealingthan their comments, were the photographs," says Faltinek. "Wewere so close to it that we didn't see some of the things that were clearin the photos."

Although visiting a show will always be important, most show managersagree that references are even more revealing. "Of course, nobody isgoing to give you the name of a show manager from a show that went bad,but you'd be surprised what people will tell you if you ask the right questions,"says Bartlett.

Find out specifically what they feel are the contractor's strengths andweaknesses. Ask about their show parameters to see if they are similar toyours. Find out how the contractor responded to special needs. Did theyhandle problems creatively, efficiently and quickly? What level of servicedid they provide exhibitors? Prepare your questions according to your ownset of priorities.

Just as important as asking the right questions, is asking the rightsources. Most show managers won't limit themselves to contractor-providedreferences. They talk to show managers in industry associations, their exhibitorsor exhibitor committee and even the local facility manager.

Traveling contractors
With competition among contractors increasing, many show managers are beingasked to sign multi-year contracts, and have the service contractor travelwith them from city to city. Certainly there are financial advantages tobe gained from this arrangement -- prices are usually fixed for the contract'sduration, and special projects can be amortized over the length of the contract-- but for most show managers it's the operational continuity that tipsthe scale in favor of having their contractors travel with them. "Knowinga client's needs is a big factor in maintaining a smooth show," saysExhibit Aids' Mitchell.

Larger shows in particular, may feel that this type of continuity isessential to their success. According to Bartlett, "The larger a showgets, the more a contractor has to anticipate needs and do things withoutbeing told. Simply because these shows tend to have more activities, wemust handle more of the work."

Show knowledge aside, Harris is typical of show managers who don't travelwith their contractors because of subcontracting concerns. All the servicesa contractor would normally provide in-house in their home-based cities,must now be subcontracted to local decorators. Some show managers feel thattheir exhibitors will suffer the burden of added costs and a lower levelof service. "There's something about a contractor coming into a townand saying 'I'm doing this show,' that sets up an adversarial relationship-- no matter what they tell you," she maintains.

For like-minded show managers, the choice is to pick a contractor withoffices in all of your chosen cities, or choose local contractors in thosecities where your regular contractor has no office.

Size limitations of local firms are usually offset by union and facilityknowledge that comes from close contact over a period of time. "Smaller,local contractors can give more individualized attention because they aretaking on fewer shows," says Mary Snook, President of Excel Expo inMontreal.

How well your contractor works with key players like the city's localunions and facility managers will directly affect the ease of your show'soperation. The selection process should include questions that will probethese areas. "Many times we will be asked what percentage of showswe do in a particular city. Show managers know that if we do the largestpercentage of shows in that city, then we are more familiar with facilityand union personnel," says Mitchell.

Ask the convention service representatives in your facility about theworking relationship between the contractors you are considering and localunions. 'Find out if the contractor negotiates the union contract directlywith the unions," suggests Caplin. "That way you know the contractoris working with that union on a regular basis. If one contractor has negotiatedwith the union business manager for 20 years, and another contractor hasn't,the relationships between the contractors and that union will be different."

Finances
"I see a trend in the industry toward shopping strictly for price,or what they can get from the contractor for free," says Caplin. "Everyonehas a budget, and that's fine, but other things should carry more weightbecause they have a bigger impact on show success." The danger in suchattitudes, say contractors, is that discounts for association services couldbe made up at the expense of exhibitors. "Although a certain contractormay offer aisle carpet at a lower rate, that's a small amount when comparedto a $2 increase per hundredweight for drayage, or a 25 percent van surcharge,"Caplin says. "A show manager needs to weigh pricing consequences onboth sides of the aisle."

Equally important in comparison pricing, is to weight each item accordingto its importance in your show budget. For example, decorating costs ata highly social show will have a significant impact on the budget. A contractor'sprice for these services will carry more weight than their offer of a discounton tables and chairs which make up a smaller percentage of the overall budget.

The nature of the contracting business, and the lead-time with whichcontracts are negotiated, makes checking a company's financial stabilitycritical to many show managers. In addition to reading a contractor's Dun& Bradstreet financial rating, Greyhound's Jones recommends obtaininga financial statement to evaluate cash flow and net worth. "Just becausesomebody is not rated high in D&B, does not mean they are less stable-- or vice versa," he cautions.

If you have any qualms about a company's stability, but are otherwiseimpressed, a performance or surety bond will usually protect your investment.

Proof of standard coverage for liability and workmen's compensation shouldalso be obtained before signing any contracts. Check the coverage limitsto assure yourself they are adequate.

The proposal
Many show managers feel that a contractor's proposal is a reliable indicatorof the type of company you'll be dealing with. Is it complete and well-organized?Does it include all of your outlined needs? The same guidelines hold truewhen the proposal form is one the show manager provides. "I'd liketo see the bid request form filled out more completely," says Van Ort."There are often areas of needs left subject to interpretation."

Some associations have developed lengthy bid specs to avoid such problems.Harris says their guidelines contain questions ranging from union ratesand warehouse capacities, to exhibitor work regulations and specific showexperience. The more detailed the specifications are, says Faltinek, thebetter. "Our specs are so good we can build a budget around them."

Negotiating
The key to getting what you need in the negotiating process is to understandthe value of your show, and how your contractor makes money. "The reasonwe want to do the show is because of the opportunity to provide our servicesto exhibitors," says Bartlett. Using this logic, a show with many exhibitswould be a more attractive piece of business, and should give the show managermore bargaining strength. 'with volume, our productivity is increased andwe can offer a lower price," explains Mitchell.

But booth numbers alone don't tell the whole story. Contractors alsolook at the package of services your exhibitors will receive. "A showthat provides all exhibitors with a package of tables and chairs in thecost of a booth will not have as much negotiating leverage because they'vetaken away a significant earning potential in rental revenues," saysBartlett. Likewise, a show that stimulates all in-house profit centers givesthe contractor more flexibility to accommodate special needs.

Other factors that increase bargaining power are multiple-year contracts,and the amount of business your show could generate for the contractor throughexposure. "I get a good deal on decoration partly because our banquetsare so lavish that people ask me who did it. I end up getting corporatemeeting business for the contractor," explains Harris. Faltinek saystheir heavy emphasis on the decorating side of the show creates a showcasethat other trade show organizers come to see. "That gives us leveragebecause the contractor knows it could bring in new clients," he says.

Even smaller shows with little bargaining power can negotiate bettercontracts if they understand where concessions are most feasible. Thereis more flexibility in property and stock items than in labor, for instance."We have to pay the men the going union rate, and that's a low marginarea," says Bartlett. "So anything that is labor intensive willhave lower margins for the contractor, and will therefore be less negotiable."

Finally, most service contractors say they can provide better service-- no matter what the budget -- if dollar limitations are known in advance."If someone comes to us and asks what we can do for $100,000, I'lldo more for him than the guy who's piecemealing me," relates Jones.

Contractor expertise
Many show managers miss valuable ideas by not including the general contractorin their planning process. "In most cases, I don't think the tradeassociations get their money's worth from their contractor because theydon't want to make it a team effort," admits Bartlett. Contractorsare on show sites constantly -- they talk to other show managers -- theyknow what's working and what's not. They can provide a wealth of ideas fromevent planning to design strategies. "In one case, a show manager whohad a freestyle skateboard demonstration that involved jumps of up to 20feet, had placed the area in a section of the hall with a ceiling heightof only 14 feet," Snook remembers. "If I had not asked what thefreestyle demonstration was, it could have been disastrous."

Contractors are also happy to give financial advice at no charge. "Acontractor with experience and a good relationship with his client, willtell the show manager, 'Hey, you don't need to spend $80,000 on that, itcan be done for $50,000'," says Jones. It may be easier for the experiencedcontractor to spot extravagances. "One show we did had an enormouspress room," says Van Ort. "The order came in for over 50 desks,when there were only four key media people attending the show. I recommendedjust four desks, and regular skirted tables to accommodate the rest."

The teamwork approach, with both parties working toward a common goal,will not only help you arrive at the best contractor for the job, but willalso provide the ability and creative talent to make a good show even better."We have found that the most successful relationships we have are withshow managers who make it our job to produce an exciting show within a particularbudget," says Bartlett. "That type of relationship benefits everyone!"


Sidebar: A service alternative

With competition between shows increasing constantly, exhibitor satisfactionis a top priority in selecting a general service contractor. Expositionmanagers want contractors who understand exhibitor needs and will work tomake show participation as easy as possible.

It was this philosophy that guided the creation of a new type of contractingcompany called Nationwide Convention Systems, Inc. President and co-founderRay Pekowski says that unlike traditional service contractors, NCS subcontractsand manages all show suppliers. "We are a true general contractor fromthe standpoint that we handle everything from billing the show, to providingall service needs for exhibitors. We call it one-stop shopping," Pekowskiexplains.The concept offers show organizers the opportunity to coordinate allthe peripheral show services through just one person.Exhibitors take advantageof the same streamlined approach, and receive only one bill at the end ofthe show containing line item details for each service ordered.

The innovative system starts when a show is booked, and a project teamis assembled -- led by project managers who work exclusively on one show.The show organizer and project manager decide on the services needed, andthe number of exhibitors expected to attend. Then the show floor is splitinto regions so that each group of 80 exhibitors is assigned a CustomerService Representative. Each CSR works with just one group of exhibitors-- beginning three months in advance, until the show is over.

One aspect which makes this service unique is the active role the CSRtakes in ensuring exhibitors get what they need. "The CSR will actuallycall the exhibitor if they see that an important order has not come in,"says Kathy Clinton, Exhibit Manager at Autodisc, Inc. Clinton has attendedseveral NCS shows and finds the difference in service significant. "Theconvenience factor is greater than at any other show I've been to,"she says.

Standardized order forms are provided by NCS which contain one set ofterms and conditions, and all price structures and deadlines. And, exhibitorsonly have one person to call for assistance and ordering -- whether it'selectricity, photography or florist services.

The biggest difference in exhibitor service, however, comes on the showfloor. Instead of standing in varied lines, exhibitors simply look for thename of their CSR on the header of the service booth, and get all theirneeds taken care of in one trip. NCS also provides floor managers calledFloor Service Representatives who roam an assigned region helping out withlast minute problems. "That's important to me as a show manager, becauseI want the show up and running on time," says Pete Principe, ConventionManager for Ace Hardware National Trade Shows.

Underscoring their desire to make life easier for exhibitors, NCS experimentswith other new services such as "express check-out," which allowsexhibitors to drop off their signed invoice at the end of a show withoutwaiting in line. "I've been to plenty of shows where I didn't wantto come back because of logistical nightmares," Clinton relates. "Butwith the Nationwide shows I get service on all levels."

The Nationwide system of service relies heavily on a trust relationship,with the show manager and project manager sharing equally in responsibilityfor show success. "We could have hired a service contractor that isin the business of managing assets -- pipe and drape, furniture, etc. --but we felt that NCS was taking the most progressive approach in the industryby instead managing show construction," says Principe.


 

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