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By Chris Valentine, 05/24/2010 10:58 am

The average McDonalds in the U.S. brings in $7.9 million in revenue.  Compared to the overall sample of revenue numbers from restaurants, this may be in the upper quartiles for revenue, but not unprecedented.  And what do we know about McDonalds? You can go into a McDonalds in Boston and be almost positive that there is someone in LA having a McDonalds experience very similar to yours. Their supply chain mandates an almost uniform selection of goods which they can then turn over to their customers at minimal cost.

By comparison, a local owner of an independent restaurant has a very flexible supply chain as his volume relative to the supplier market is small. In fact, he can get quite creative when it comes to his menu and offerings.  He can provide low calorie and green offerings; he can change his menu weekly, even daily to appeal to his customers’ changing tastes. He can do all of this and offer a price point, while not a McDonalds’ level, is very competitive within the casual dining segment.

Now, if the independent restaurant owner begins to expand, opening new locations, etc., the demands on his supply chain become very stringent.  Bottlenecks, quality, price consistency all become paramount as he strives to meet his overhead and the desires of his growing customer base.

Now within the world of GSC’s the large players will have you believe the depth and value of their owned equipment (the majority of their supply chain), is necessary to produce your events.  However, it is quite the opposite. The depth of their supply chain is not needed for YOUR event; it is needed due to the 400, 700 or 4,000 other events they produce within a year.  In fact, if that were the case, the largest players in the industry should have substantially lower pricing (much as McDonalds drives their supply chain) as their depth of offerings are limited, but broad – evidence that inefficiencies within the chain have existed throughout the years without being removed or improved.

We live in a marketing environment. It is the responsibility of the GSC to represent a client’s brand, offering products that speak for the brand in a unique way that’s tailored to the client. Currently these offerings are based upon a warehouse of furnishings or even graphics and signage that has been reused client after client, show after show, without any individualization at all.

You want to hire T3 not because of a rental inventory; we can give you a list of 100 vendors that will all have the same equipment.  You are hiring us because we understand the logistical demands and dynamics that it takes to service a show.  Between the three of us we have almost half a century of experience with exhibitors, unions, design, facilities, corporate marketing, financial/budget and the real challenges that are placed on your event.  And we know how to bring it together the way you want it. That cannot be bought like a 6’ table and an aluminum post.

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By Chris Valentine, 05/04/2010 2:53 pm

Over the last few months some industry associations have decided to move their annual tradeshows from Chicago to other North American locations. Given the current economic environment, this has become a major issue in the local Chicago media, as well as a hot topic of discussion among those of us involved in the tradeshow and event industry.

Why certain associations have chosen to leave Chicago is secondary to the perception across the industry that participation is too costly, whether in Chicago or any other venue.  I think those of us involved in the industry would agree that the way events and tradeshows are priced needs to be revisited. When a customer speaks, perception is reality and the market has spoken and spoken very loudly.

In our humble opinion, General Service Contractors are an important part of the solution. We need to work with everyone involved (exhibitors, show owners, associations, labor, unions, convention centers, third party providers, etc.) to understand their concerns and requirements and create innovative, new pricing solutions as soon as possible. We have to provide transparency to our customers within the context of the environment in which we operate.  This is not a new issue; we referenced a 1971 Chicago Tribune article {cited below} in a prior blog post in which this same topic was being discussed.  As an involved, invested participant in this industry, we need to create value-based pricing and product offerings that enhance any event, whether in Chicago or any other North American city.

{“Analyzing the Trade Show Industry” written by Thomas Powers appeared in the July 18^th edition of the Chicago Tribune}

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By Chris Valentine, 10/12/2009 3:53 am

This article, by Thomas Powers of the Chicago Tribune, questions the value of tradeshows relative to their cost. Within the piece, William Bucher, exhibits manager for Kiekhaefer Mercury Corp, surveyed 210 exhibitors at the National Food Processors show and found that 58% considered not exhibiting the following year, while 25% had already decided to drop out of subsequent events because of costs.

Sound familiar? Ironically this article was written on July 18….1971!

Since then, the options for marketing dollars have expanded exponentially and here we are 38 years later hearing the same comments. So we ask you, the customers, are tradeshow general service contractors doing enough to not only sustain, but grow the tradeshow and event industry? If not, what improvements or changes would like to see happen?