Posted by Springbok on 24/03/2012 05:10:10:Ketan,
throwing ideas but I am sure you are makeing a wise decision in this economic climate as I talk to old trader friends at shows and they complain about the cost of stand space but this is not the organisers fault but the hall management . My wife is a show manager for a club not related to ME in any way and had been useing Abbingdon town hall for many years new management, doubled costs reduced services, they pulled out moved up near Birmingham and reduced there old costs by over 30% Who is the looser.
And yes I am a loyal customer
Bob.
Hi Bob,
The cost of the stand space has not been the issue for us. In real terms, they have not really gone up. Also, most of the exhibitions bring in the numbers in terms of potential targeted customers. The problem is two fold. Most traders in our business have either grown at a reasonable or alarming rate, with very few going out of business. One of the reasons for this growth is the internet. There is a positive and an negative element to this. Bigger audiance, and customers having a wider choice. In turn, prices becoming more competitive, and profits reducing becasue of increasing material costs due to various factors.
As an example: Our financial year ends at the end of this month. A week ago, I checked my figures to find that we were up on sales by 13% over the previous financial year. Great! I thought. We had also reached a milestone figure, and it was celbration time for all at ARC and pizzas were ordered for all. Yesterday, I interrogated the figures a little more. On averaged, our product costs from China had increased by 20% to 30% over the past one and a half years, but our sales prices had only increased by between 8% to 15% for a limited range of products. Why? Fear of competition.
There was a time when we started, we were clearly advised by show organizers that they wanted to present a "balanced show", and if we in any way disturbed this balance, they would re-consider our position for the next year. In other words, they did not want us to upset another trader, so they wanted to limit the number of people selling the same thing, which "in pricipal" is a good thing. However, over the years, this position became diluted, instigated by us as well as other established traders, selling the same stuff, competing with each other for the same business with an ever reducing profit margin. In this instance, we are as much to blame for upsetting the balance, as are the show organizers who continue to bring in new traders – who sell the same stuff as we do – at the shows which they organize. The end winner is the customer – not the trader.
This is not a complaint, but an observation. If you ask other established traders, confidentially, they will tell you the same thing. If you speak with the exhibition organizationers, many of them will have amnesia about the balanced show principal when the subject of new trader entry is brought up , and this is a fact regardless of what they may say, or, they will state legal reasons for their decisions, even when you remind them of what they said six or eight months earlier. Regardless of what they say, they are "in business" in one way or another irrespective of who has organised the show, be it a club or business. All they need is one or two "headline" traders to commit to attending, and in their eyes, the rest will follow. At this time, "honest balanced principals" have left the building. Then again, this is business right?
So, being in business, we too have to make a business decision, which we have done. Again, this is not an attack on shows, nor is it an attack on new traders. We too were new traders once, and we have only grown thanks to the help and support of our customers. This is just our take on the current climate. Everyone has a mouth to feed, so every trader and show organizer has the right to make their own decision.
Ketan @ ARC.