"They can't do it without us, and we can't do it without them." That's a sentiment often echoed by show managers about their service contractors. And while this pays tribute to the need each party has for the other, it says little about how well the relationships are working. Are show managers getting what they need from their contractors? Do decorators truly understand the pressures placed on show producers? Are exhibitors receiving the level of service they deserve?

To answer these questions, EXPO invited a group of show managers to participate in an interview during the National Association of Exposition Managers' Summer Meeting in Denver. A similar interview, conducted last year with service contractors, indicated that the contractors feel they are misunderstood by show management. Actually, it's quite the opposite.

Reflecting the maturation of the exposition industry itself, today's show managers are sophisticated, savvy business people with a shrewd understanding of their service contractors' operations. They respect the decorators' profit centers, understand the constraints under which they often operate and recognize the pressures placed on them by exhibitors.

In exchange, show managers expect more than ever. Customer service has become their highest priority, and they will not allow their exhibitors to be taken for granted. Competition is fierce in the industry today, and each show manager is determined to come out on top. They're demanding good service at a fair price. And they will accept nothing less.

Taking part in the interview, and representing shows of all types and sizes, were:

Wayne Crawford, Vice President and Show Manager, Professional Exposition Management Company, Des Plaines, IL.
Richard Dobson, Senior Vice President of Conventions & Exhibitions, National Association of Broadcasters, Washington, DC.
Gary Huffaker, Senior Director of Conventions & Expositions, California Restaurant Association, Los Angeles, CA.
Joan Zimmerman, President, Southern Shows, Charlotte, NC.
Robert Zimmerman, Chief Executive Officer, Southern Shows, Charlotte, NC.
Audrey Zook, Conference Exhibit/Display Coordinator, Medical Group Management Association, Englewood, CO.

What chief concerns do show managers have today about their service contractors?

Huffaker: The account representatives seem to be taking on too many shows. We feel a little bit like a stepchild when we're one of 30 shows the rep is handling. We need more attention than we're getting.

Crawford: Service contractors need to understand how important it is that they provide good service to our exhibitors. From our perspective, that's just as important as providing good service to show management -- if not more so.

Dobson: I think service contractors need to make sure they understand our philosophy, our priorities and our requirements. And, admittedly, we are half the problem if we don't articulate these things. If top management understands what is most important to us, it will be filtered down through the company to the lowest levels.

Huffaker: Another issue we need to address is subcontractors. I think it's time show managers stopped accepting whatever subcontractors the decorator wants to bring in. If we're going to control the quality of service at our shows, we should be as involved in selecting subcontractors as we are when selecting general contractors.

Dobson: Who really is the general contractor? I don't think the decorator is. I think I am. I hire the decorating contractor and I hire most of the subs. I think it's the show manager's responsibility to be the general contractor. We've got to take control of our shows. We're the ones who will lose our jobs if the show isn't a good one.

Crawford: Service contractors need to understand that, from our perspective, shows have gotten so competitive that the exhibitor is a customer who can no longer be taken for granted. Very few shows are the only game in town anymore. We can't take that attitude as show management, and we can't tolerate any of our contractors taking that attitude either.

Dobson: The issue is customer service. In the United States, we've watched as various industries have been surpassed by their counterparts in other countries. And now we make these wonderful claims about how we've found our niche as a service society, and a service economy. Well I'll go on record here as saying we're screwing that up too. I think the concept of customer service has been lost. The difference now between a good show manager and a mediocre show manager is the level of customer service. I mean, this ain't brain surgery. Getting freight in and out the door is not what differentiates us any longer -- it's who can do that while still maintaining a strong base of support for both exhibitors and attendees.

Crawford: Pricing enters into the customer service debate as well. How much service is a contractor going to provide if he's being beaten to a pulp by a show manager who doesn't understand his profit centers? You don't want to squeeze your contractors to the point where they can't make any money. I would rather approach a contractor and say, "Look, we're making money on the show, we feel that you should make some fair amount of profit too. Let's find out what it takes to do that, and still provide good service at a fair price to the exhibitors."

Joan Zimmerman: Don't you think that the service contractors you work with are really at the mercy of the labor pool? That, as much as anything, determines the level of service that you're going to get.

Dobson: When I hire a contractor, I don't want excuses. I'm buying a package. I'm buying not only their management, but also their labor. And I think that different contractors in different cities have varying levels of control over labor. Some simply do a better job than others.

Huffaker: When we talk about pricing, again, I think the subcontractors must be considered. If a show manager has a multi-year contract with a decorator, and the show goes to a city where they sub the work to a local contractor, you really have to watch the pricing -- not only for yourself, but for your exhibitors as well. We need to make sure they're not adding an extra five or 10 percent because they're having to sub it.

Dobson: All the prices should be known up-front. The bid process should eliminate any such surprises. Now, how those revenues are split -- that we may never know.

Zook: I can usually get all my prices up-front except for labor. Contractors always seem to reserve the right to change the labor prices if the union contracts are renegotiated.

Dobson: The contractor knows during the bidding process for your show whether or not the union contract will come up for renewal before your event. And even then, he knows the upper end of the percentage increase, and can plan accordingly. I've had contractors tell me, "We're anticipating an increase of so much, and we're setting your prices here. The prices won't go up, and they may go down. " At least that way I know the worst case scenario, and can communicate that with my exhibitors.

Robert Zimmerman: I think it's important when you're receiving bids from several service contractors, that they're all bidding on the same premise -- that you're comparing apples to apples.

Dobson: That's where the written RFP makes all the difference.

Zook: It would help if they would respond to the RFP in the manner in which you've suggested they should. Sometimes when I send out an RFP, I get back a standard proposal. That obviously shows me they didn't put much time in on my proposal. I have a category on my evaluation form called "responsiveness," and it's a big part of my selection process. It's a hard thing to judge, but it's going to be very important as you get closer to your show. Does he take a week to return calls? Does he give me what I ask for?

Joan Zimmerman: Contractors need to understand that we're quality conscious as much as rate conscious. The final decision is not always based on bottom line costs.

Robert Zimmerman: Another high priority for us when selecting a decorator is their knowledge, background and use of the facility we're planning to use. Have they done shows in that building before? Are they familiar with the people who work there and the intricacies of the building? In some instances, we've accepted a higher bid from a contractor because we know they've worked extensively in that facility.

What do you feel is the greatest misconception that service contractors have of show managers?

Zook: They think we make all the decisions. A decorator might call and ask me a question, and expect an answer right away. Well, I work for an association. I often have to check with other staff members or association members to get their input. It can take several days to get an answer for what the decorator thinks is a perfectly simple question.

Crawford: I think there continues to be a bit of a misconception with service contractors that we want to be wined and dined and entertained. I don't care about dinner -- I want good service.

Dobson: I think there may be a lack of appreciation for the pressures that association-run shows are under to decrease costs in order to increase non-dues revenue. There is incredible pressure on us. Sometimes decorators don't seem to appreciate how a dollar here and a dollar there can add up to a real problem.

Joan Zimmerman: I think if they have any misconception, it's that show management firms are more interested in protecting their costs than protecting the costs passed on to exhibitors. That's totally false. It's more important to us that our exhibitors get good prices.

Dobson: We're looking for balance. Any business person would gladly sacrifice in the short term for long-term gain. Picking up an extra one or two percent of the cost on the management side, to keep costs down on the exhibitor side, will translate into increased square footage next year. We don't want to trip over dollars to pick up pennies.

Are contractors doing a good job working with exhibitors -- from explaining procedures to processing orders?

Zook: The problem in working with exhibitors is that the person who fills out the paperwork is not always the person who comes to the show. It may not matter how well I've done my work, or how well the decorator has done his work -- if the company sends someone who has never even seen the file, it's almost as if we're starting from ground zero.

Dobson: It would be very easy for us to blame contractors for a certain lack of service. Often, it's really show management that's at fault. It's our show, and it's our responsibility to set the tone, and make our expectations known. I think that contractors, if given a very clear picture of what you expect, respond very well. I do, however, think problems can occur from a lack of internal communication on the decorator's part. You get a gung ho salesperson who touts his company as the best, and makes lots of promises. Then he never goes back to the office and says to the staff, "I made a commitment, and this is what we're going to have to do, and this is why it's important."

Joan Zimmerman: A lot of the hostility from the exhibitor arises because they haven't done their homework. After you've given them all the advance notice you can on the difference between advance prices and on-site prices, for instance, many of them wait to place orders onsite and then get angry at having to pay the higher rates.

Dobson: I think a good contractor will contact each and every exhibitor before the advance-price deadline to make sure they're aware of the discounts, aware of what they must get through the contractor and find out what their needs are and if there are any problems. It's good public relations -- it's customer service.

Crawford: I spoke to a contractor today about this very issue, and he said that although they'll make more revenue off floor orders, they would rather have all the orders in advance. It's easier on their inventory, and from a management standpoint. It also gives the exhibitor the impression that the contractor is delivering good service.

Huffaker: The exhibitor is the customer for both contractors and show management -- and we all have to realize that. This hasn't necessarily been the philosophy of the past. I think we're finding more contractors doing things like this telemarketing. And I think it's up to us to help them.

Crawford: I think another part of this is the attitude of the laborers and the service contractor's employees. An exhibitor may make a mistake, but if they get someone who will listen to them and try to work through it with them, as opposed to some surly person at the service desk, I think you'd get it resolved a lot quicker and the exhibitor would feel much better.

Zook: It would also help if the service desks were properly staffed with enough people.

Dobson: Someday we're going to get to the point where good service is the rule rather than the exception. And once we turn that corner, exhibitors will arrive at the service desk expecting good treatment, instead of expecting bad treatment. I think a lot of the bad treatment they get, however, is because they're so hostile when they walk up, that the people at the service desk become defensive.

Robert Zimmerman: A lot of times exhibitors are hostile because they've arrived to find their booths aren't ready -- whether this has been caused by a lack of communication from show management, or a deficiency on the decorator's part. They've arrived on schedule to find their carpet isn't down; and they can't do anything until the carpet is laid.

Zook: We actually allow our decorator more time than he needs to set-up because I know there are going to be exhibitors requesting extra time. If the decorator has everything in place, the exhibitor feels like his special needs have been met.

Robert Zimmerman: I think you make a good point. In many cases, show managers are not allowing sufficient move-in time for the decorators. People force their contractors to do in one day what should take at least two.

Dobson: Shows are getting stuck between having tremendous move-in requirements and having facilities booking business tighter all the time. We've got an eleven-day move-in, and we've got quite a few exhibitors who need the full eleven days. It's almost as if the decorator and exhibitor are arriving at the same time.

Crawford: Do you find that halls are pressuring you to give up some of your move-in days so they can cram in another show?

Dobson: Not a year goes by that I don't get a call from the bureau asking if they can squeeze a day here or there. It's not too bad yet, but I have a feeling it's going to become a greater issue as time goes on.

Robert Zimmerman: Especially in private halls. Not only do they want you to take less time, they want to charge you more for the time you do take.

Do you believe that contractors are trying to address the high cost of trade shows, for both exhibitors and show managers?

Crawford: I see movement in this direction, but I think one area that continues to remain unaddressed is the various surcharges they have for van lines or uncrated materials. If you've got a machinery show, for example, no matter how the exhibitor brings in his equipment, he's going to get hit with some kind of surcharge. It's not a fair system.

Zook: It's very difficult for an exhibitor to calculate in advance how much it's going to cost him to participate in your show. By the time you fill out all the forms you have a fairly good idea, but there's always going to be something more.

Crawford: A smart exhibitor will always build in some percentage for contingency, but it would be great if we could get to the day when he could look at his kit and know exactly what the show will cost him.

Dobson: I think what they're doing with surcharges is taking something that generally applies, and saying, "This is a rule. Rather than deal with the exceptions, we'll just make it a rule; and 70 percent will fall nicely into this category, and we'll argue with the other 30 percent."

One of the most controversial issues in the industry today centers around exclusive contractors. Where do you stand?

Huffaker: If an exclusive goes beyond what it's reasonable to expect -- such as catering -- I don't think we should take our shows there. We should have the opportunity to choose who we will do business with. I strenuously object to the idea of being told who I will or will not do business with.

Dobson: The real issue is how facilities generate revenues. It's unfair for us to talk about the pressures on us to generate revenues, while at the same time denying the facilities the same right. Although in the past they've been budgeted as loss leaders, they're now being told to pay their own way because municipalities just don't have the resources to offset these losses anymore. And I think they're perfectly within their right to seek an offset to this deficit. The problem is that no facility wants to be the first to announce a rate increase, because this is how they compete with each other. So they're developing these clever pricing schemes where you've got the basic square footage charge on top of all sorts of ancillary charges. I think that facilities should charge by the square foot because that's what we all understand -- and if instead of 80 cents a foot, they need $1 a foot -- charge it.

Zook: But charge it up-front. Tell us what it's going to be so that we don't have all these surprise expenses.

Dobson: I don't think they're trying to deceive us. I think what's happening is that they feel they have to keep their square footage rates the same. There's not a facility out there that isn't looking for new revenue sources. What we're saying is, "You deserve the additional revenues. We will not deny you those revenues. Just don't cut off our ability to hire the best service at the best price for our customers."

Joan Zimmerman: Exclusives will invariably lead back to a lack of service.

Dobson: It guarantees lack of service. I don't think exclusives are a thing of the future anyway. It's not going to take too many show managers saying, "I'm not going to hold my show there," before we see the end of this whole issue.

What issues are on the horizon that concern you?

Huffaker: I wonder how long it's going to be before we see the European style of show management take hold here -- where the owner of the building is actually the show producer. At that point, exclusive contractors will be the least of our worries.

Dobson: There has already been some talk about that at McCormick Place. If it comes about, it will be interesting to see how municipalities will deal with the question of putting in facilities with taxpayer money and cutting off private enterprise in the process.

Robert Zimmerman: It's already happening. The Raleigh Civic Center in North Carolina created a corporation to produce shows. I wouldn't have a problem with the idea if it was a private facility, but both the center and the corporation are owned by the city. We produce three events in Raleigh, but we refuse to use the facility for that reason.

Dobson: Then I would suspect that this industry is about to have some very interesting test cases for the courts.