Outsourcing Show Services

Adding experts to your management team

By Rayna Skolnik

The word isn't even in some of the newest dictionaries. Yet how many show managers can go through a full workday without talking -- or at least thinking -- about outsourcing? It is one of the most widespread business trends in recent years.

In fact, show managers have always outsourced. After all, "outsourcing" is just a trendy term for subcontracting. "Most organizations do one or two major shows a year. It's not practical to carry a specialized staff on a year-round basis when you need to gear up only before, during and after the show," says Wayne Atwood, President of The Atwood Group, Overland Park, KS, which publishes show dailies and directories and also handles registration, sponsorship sales, telemarketing and convention photography. Because of the industry's long-standing tradition of subcontracting, "Trade shows were ahead of the curve," says Atwood. "We're now seeing an increasing trend toward outsourcing, not just in the trade show or professional meeting context, but also in every aspect of the public or private sector."

Because of the attention currently being focused on outsourcing throughout the business arena, show managers may be re-evaluating their needs and wondering if there are areas in which the outsource option is right for them. Shrinking staffs and tighter budgets certainly set one to thinking about getting outside help on an as-needed basis. Although those are valid reasons, they are not the only ones. Outsourced services can provide the expertise that makes a show more competitive. And outsourcing can relieve show staff members of tasks they either can't or don't want to do.

"Expertise is the primary reason we outsource," says Wayne Stetson, Vice President, Convention and Meetings Division for the National Association of Home Builders, Washington, DC. "Sometimes staff people are too close to the situation. You need fresh ideas from the outside." For the last 15 years, Stetson has outsourced attendance promotion, marketing and advertising to William J. Kircher & Associates Inc., a Washington, DC, advertising agency that specializes in working with show management. "This particular company has an expertise and a success record with other shows comparable to ours,"Stetson says. "Last year, we did a lot of new things with them, and the results were phenomenal."

According to Jeff Mundson, Vice President of Marketing Services for Marketing Resource Associates, "Association executives come to us if they are looking to re-position their show or meeting, perhaps because attendance is lacking, and they don't have the expertise or resources they need. We would create a marketing communication recommendation for them -- we set the strategy to achieve their objectives." Mundson's firm was formerly the marketing support arm of Andrews-Bartlett and operated under the name A-B Communications, handling attendance promotion and exhibit marketing, including advertising and public relations. Now an independent company based in Twinsburg, OH, it has added telemarketing and booth sales capabilities and has formed an affiliation with Conferon, a company that negotiates hotel rates for associations.

Changing technology is another element in the outsource decision. "Registration is something everyone can do," says John Laughlin, President of Galaxy Expocard Registration and Data Management, Frederick, MD. "It's one of the easier things for small- and medium-sized shows to do. But what is changing is that exhibitors are asking for technology that associations can't do any more -- for example, technology to track educational sessions."

Outsourcing often is a wise move for associations, says Steven Hacker, President of the International Association for Exposition Management. "There is a need on the part of many associations to compete more professionally with for-profit organizations," he explains. "Tapping into an independent tends to accomplish that. Because of the rigidity of association structures, when you outsource, decisions are made more efficiently and quickly." He adds, "Many associations don't have an inherent marketing bias. They are built on member service, rather than marketing skills." Thus outsourcing permits the association staff to continue to focus on what they do best -- provide member services -- while suppliers handle various aspects of the exposition and conference.

As persuasive as those arguments are, outsourcing isn't always the way to go. It's an individual decision that every show manager must make based upon needs, abilities, budgets -- and personal preferences.

What can you outsource?

Starting with the most comprehensive approach, an association might choose to have a full-service show management company handle the entire exposition and conference. "Associations are facing the same challenges as corporations," says Mike Smoyer, Executive Director, Association Show Management Division, for National Trade Productions, Alexandria, VA. "We find that many association managers are considering outsourcing their shows. I've been in charge of new business at NTP for 10 or 12 months," says Smoyer, "and we've already bid on four of the Tradeshow 200 shows." NTP, which recently sold its proprietary government shows to Reed Exhibition Companies, is now focusing on its interactive marketing services.

In other instances, an organization might look to a show management company to provide the experience it lacks. "We knew there was a market for a show for the wireless industry, but we had never done a show before," says John French, Publisher of Microwaves & RF magazine, Hasbrouck Heights, NJ. Consequently, French hired Marketing Resource Associates to manage the new Wireless Symposium and Exhibition. "You go outside in the beginning, when you don't know anything," says French. "If the show doesn't grow, your exposure is minimal." Fortunately, however, French's show has grown. "It was profitable the first year, and quadrupled the second year," he says.

But association executives and independent show managers also have the option of outsourcing pieces of the pie. There are companies that will do attendance promotion, exhibitor promotion, advertising, public relations, show sponsorships, registration, travel and housing arrangements, show photography, floor management, special events and spouse tours, show directories and dailies. You can outsource -- or subcontract, or delegate -- almost any segment that makes sense for you.

You can even customize your outsourcing, choosing only what you want from an individual supplier's offerings. For example, the Kircher agency can provide research, copywriting, positioning, design, printing, mailing and public relations. "Some associations have no staff and farm out everything," says General Manager Bob James. "In other cases, they try to do some part of it. We might do the creative and they'll do the placement."

Doug Poindexter turned to an outside supplier to help increase the gate and sponsorship sales for America's Family Pet Show, sponsored by Western World Pet Supply Association, Arcadia, CA. "For the first four years of our show, we had some sponsors," says Poindexter, who is Show Manager. "We sent information to a number of companies we thought might have a tie to our industry. But we really didn't get any great results. We didn't have time to cultivate them, and we didn't know who we should contact."

Enter, Prichard Marketing Inc., which can provide a show manager with a single service, such as selling sponsorships, or organize the entire event, with the exception of booth sales. To sell sponsorships, "We deal with 3,500 corporations that spend money on events," says Janice Loveland, President of Prichard, based in Santa Monica, CA. "But they don't spend easily." Nevertheless, Prichard increased sponsorships for Poindexter's show to $155,000, from $70,000 the preceding year, says Loveland. She also notes that media impacts were increased to 140 million from 32 million -- using the existing budget.

Even a full-service show management company hired by an association might outsource part of the job. "We do as much as we can in-house," says Harry Schwartz, President of Epic Enterprises, San Diego. "But there are certain skills our staff doesn't have. And sometimes it's not cost-effective to staff up." Among the responsibilities Schwartz might outsource: directory ad sales, outbound telemarketing for attendance promotion, housing, floor management and graphic design.

Explaining some of his choices, Schwartz notes, "Telemarketing for attendance promotion is a two-week blitz. It doesn't pay to staff up." Instead, he contracted with On-Line Reservation Systems, of La Jolla, CA, which does direct mail and telemarketing promotion, preregistration, housing and travel. Right now, however, Schwartz is using On-Line strictly to telemarket and sign up any of the attendees captured.

As for the directory ads, he says, "Our sales staff spends the majority of their time on exhibit space sales. There is less and less time for them to focus on things like directories or shuttle bus ads." Because time pressure made it impossible for the in-house sales staff to put forth the necessary effort, Schwartz turned to Rob Hedeman of Trade Services & Systems in Miami. "Rob has specific expertise in selling directory ads," says Schwartz.

What shouldn't you outsource?
Full-service show management companies are in general agreement that the one service that should not be outsourced by itself is exhibit sales. "We have a menu of everything that can be done. The only one we don't break out is show sales," says Galen Poss, President of Precision Planning & Sales, Dallas, a subsidiary of Miller Freeman Inc. "We like to have more control over the product. Otherwise, other people are making the promises that we have to deliver on. If we make a commitment, we want to be sure it's upheld."

Poss wouldn't accept the responsibility for booth sales, and Schwartz says he wouldn't delegate it. "That's too key to what we do. If we don't sell, there's no show."

Meanwhile, NTP recently accepted the assignment to handle exhibit sales for an association, even though the company normally prefers to take on turnkey assignments. According to Smoyer, NTP sometimes will take on a single component of a show if there seems to be an opportunity for a long-term, expanded business relationship. The association in question no longer has a sales staff, says Smoyer. "They originally looked to us as consultants because of our track record of growing shows. They contracted for our sales capabilities to see if we could grow their show for them." Thus he hopes that this project will lead to a broader assignment. But he, too, sees a potential problem: "If simultaneous efforts are not made to increase the attendance, that show won't grow no matter how good the salespeople are."

Selecting suppliers
Once you've decided which services you want to outsource, putting together the initial list of suppliers should not be too difficult. They are eager to let you know they exist. Look for them in directories of organizations such as the IAEM or the Professional Convention Management Association. You'll also find them exhibiting at meetings of such associations. "We began marketing our services last December and had a tremendous response at the IAEM meeting in New Orleans," says Dave Bellon, Director of Marketing for On-Line Reservation Systems.

"We try to keep visible in the community, in IAEM," says James at the Kircher agency. "We send out a quarterly newsletter, we advertise and we cold call." Despite all that activity, however, "Most people come to us by reference from another show manager," he says.

Asking other show managers for recommendations is an important step when building your list, and it is critical when you are ready to make a choice. When Poindexter was considering hiring Prichard Marketing, he contacted some of the firm's clients. "We asked if they had come through with what they had put on the table," he says. "We asked, 'Is this a company you'd do business with again?'"

Similarly, Stetson says he originally checked with Kircher's clients. "We took a look at their success rate with our sister associations," he says. "We wanted to hire an extension of us, our own attendance-promotion arm."

According to Jon Ryan, Vice President of Sales for convention photographer Oscar & Associates, Chicago, show managers need to compare the range of services, quality of work, price, and especially follow-up support, to be sure that suppliers can meet their needs. When selecting a photographer, he says, "Fifty percent of it is clicking the camera, and the rest is sales support. I hear about photographers that are just an answering machine," he continues. "But this is an office with a full staff, not somebody's answering machine. We turn our contact sheets around without rush charges in less than four days, and I know that not all our competitors do that. That's our marketing edge."

Laughlin at Galaxy cautions show managers to be thorough when requesting references. "The difference between us and every other registration company is that we do everything," he maintains. "Other companies contract out pieces, and the show manager often doesn't know who's supplying the pieces." Asked how the show manager can guard against being misled, Laughlin replies, "Ask for a reference for every single service. For example, we do automated job placement. If other companies say they do that, ask for names of clients."

Site visits should also be part of the selection process. Schwartz notes that he made three trips to On-Line's telemarketing facility in Park City, Utah, which Bellon says has 40 operators and the ability to increase to 100. "I saw the operation and I talked with the supervisors," says Schwartz. "I didn't just talk to Dave." When Travel Planners, a New York City company, wanted to handle travel and housing for Schwartz, he traveled to New York City to see the operation. "You can't get a feel for it 'til you see it," Schwartz insists. "And we won't jump into anything, because what they do is a reflection of what we do."

Reputable suppliers encourage personal visits. Atwood suggests that show managers considering outsourcing should, in addition to checking references and requesting samples, "Talk face to face with our people, realize that they have empathy, that they understand. The credibility comes in," he says, "when prospective clients realize that you as a prospective supplier are sensitive to their needs."

Expect the supplier to check you out as well, to determine if the relationship will be harmonious and successful. Says Atwood, "We need to know about the prospective client's needs, priorities, the channels of communication and the approval process."

Loveland remarks, "We probably scrutinize shows more than they scrutinize us. I have a full staff of marketing experts -- it's expensive to run this company -- and I don't want someone working on a project that won't sell."

What will it cost?
Outside suppliers may charge a flat fee, a commission or a combination. Loveland used a combination for America's Family Pet Show. "For this event, we charged a fee in the beginning, to organize everything, plus a percentage of each sponsorship we sell and a percentage of the increased gate over last year," she says. She notes that a stipulation in the contract protects show management: "We were so sure we could make more money that we guaranteed if we did not increase the revenue by the amount of the up-front fee, we'd return the fee."

Bellon at On-Line Systems says that if he handles travel or housing, he receives a commission from the airline or the hotel, just as a travel agent would. Thus there is no cost to show management for those services. If he does registration, there is a per-registrant fee.

"Some agencies may charge a commission," says Mundson at Marketing Resource Associates. "We charge a fee based on our time. And all costs are billed net -- we don't mark them up."

Although show managers often expect outsourcing to cut their costs, that should not be the only measure of effectiveness. "Sometimes you don't reduce your expenses, but you do increase your profits," says Poss. "For example, you might have a show with 200 booths, a bottom line of X, and costs of one-half X. If your costs remain the same, but you bring in 300 booths, you may not have reduced your costs, but you're in much better shape." If you're spending the same amount, but getting more for your money, the value is clear.

Ensuring success
Outsourcing is delegation, of course, and delegation makes most people nervous. They're afraid that out of sight means out of control, that no one else could possibly do it as well as their own organization, that they're going to be overcharged for a second-rate job. Careful selection of the supplier is the first step in preventing such disasters. But once a supplier has been chosen, the show manager has two key responsibilities. First, he or she must provide all the information the supplier needs in order to represent the show accurately and meet the goals that have been set. And, secondly, the show manager must monitor the process to be sure that everything is being done correctly and on schedule.

When Poindexter began working with Prichard, "They needed a fairly good scope of what the show is about," he says. "We gave them videos and programs from past shows. Then, as exhibitors began to come in, we gave them weekly or biweekly updates so they could see things that would be a good public relations hook."

At the National Association of Home Builders, association executives encourage communication between their staff members and the association's ad agency, to ensure that the agency is headed in the right direction. "We ask the agency people to sit down with our different departments to find out what the issues are in our industry," says Stetson. "We run about 200 educational programs," he continues. "So we also ask them to meet with the staff directors of the educational programs to learn what the topics are. Through those interviews with the staff, and their own market research, they identify what goes into brochure No. 1, No. 2, and so on. And the bullets in the brochures highlight the important issues."

Schwartz says that the guidance he provides for suppliers varies depending on their level of sophistication. "For attendance telemarketing, we provide a word-for-word script with the message that we want to convey." It's not necessary to do as much for the directory ad salesperson, he says. "Hedeman is a seasoned salesperson. We provide him with the basic information."

Contracts specify what the supplier must produce and what fees have been agreed upon. But the smart show manager will also build in limits to help him or her maintain control. "Jeff [Mundson] sits down with me and we decide on the general parameters," says French at the Wireless Symposium and Exhibition. "He has some latitude, but outside those boundaries, he comes to me to make the decision."

The agreement also should clearly state the checkpoints -- how often the supplier is expected to provide the show manager with a status report, and what percentage or segment of the project should be completed by each checkpoint. Poindexter says that Prichard presented reports at regularly scheduled meetings, sometimes monthly and sometimes every other month. But the pace picks up as show time approaches. When Poindexter spoke with EXPO, it was less than a week before his show date. "I doubt there was a day in the last three months that we haven't spoken," he says.

"So many details are involved. You always want to make sure you have some kind of control or checks and balances. That's true whether you use an outside company or delegate to a subordinate. You can't just give it up and walk away and hope it's going to get done. You have to follow up on all those details."

Schwartz, who has experience in both roles in the outsourcing relationship, admits that it is possible for show managers to lose control when they outsource, but that it need not -- in fact, should not -- happen. "If an association took the attitude, 'We hired Epic to run our show, and we'll wash our hands of it,' of course they'd lose control," he says. It's up to the show manager to develop the relationship and to exercise the appropriate amount of control. To illustrate what is appropriate, Schwartz says, "I'd never call Bellon (at On-Line Registration) as often as I'd expect an association to call me. We're on the phone with an association 10 or 12 times a day."

Stetson, who has worked with Kircher for 15 years, says, "We look at them as part of the staff, part of the family." Nevertheless, he has not relinquished his own responsibility. "We just don't give them free reign," he says. "We check and double-check very carefully."

The monitoring and the status reports are more manageable today, thanks to recent rapid advances in communications technology. "Part of the reason that outsourcing has become more viable," says Atwood, "is that facsimile, E-mail, overnight mail service and cellular technology make dealing with a supplier or a client far easier."

It's not always easy, however. Ross Mermilstein, Director of Meetings for the National Sheriffs' Association, once had his exhibitor prospectus done by Marketing Resource Associates, and has only the highest praise for the firm's work. "That prospectus is a big selling tool," says Mermilstein. "That was the first time the association had done anything on a real professional basis."

But the problem, he says, was, "Faxing a lot back and forth. I'm overnighting it to him, and he to me. Here, someone just walks down a flight of steps. I find it more convenient."

Cost was also a factor. The association now has its own computer and has hired one person to handle the prospectus, the flyer for registration and housing, and the association magazine. "Our experience is that desktop (publishing) is cheaper," says Mermilstein. "We've got somebody on staff, so I'm not paying for a person to do the prospectus."

Still, he acknowledges that that could change. "We're in a growth mode. I don't know that our one person could handle more volume. If she gets swamped, I'll have to go back outside."

Poss urges show managers who do decide to outsource to forge a long-term relationship. "I know people who change their partners every year. I'm not sure that's in the best long-term interest of your show," he observes. "Once you begin outsourcing, you are creating a team."