Posted by
Barry Siskind
Community Manager
At AFIDA’s conference in Ecuador, April 6-9, 2010, I listened to Luis Alberto Petit. One of his many interesting discussions focused on the issue of pricing. He advocated the use of flexible pricing for exhibit space. For example, if the organizer does not deliver the audience it promises then there could be a price adjustment. Or, if the audience falls by 10% of the promised figures there could be a 5% deduction, 20% and there is a 10% discount, 30% and the discount is 20%, 50% and the discount is 40%.
While Petit calculates based on the volume of visitors there might be other measurements such as quality of visitors, traffic intensity and so on.
If we are to attract and retain quality exhibitors then perhaps we need to open a discussion around various pricing strategies in the industry.
Don’t miss Jochen Witt’s presentation at the UFI Open Seminar in Budapest on June 21-23.
His presentation is titled “Innovative pricing strategies in the trade fair industry.” http://www.ufilive/budapest2010.
I don’t think such quantity related discounts would make a difference in the long run. Except possibly for the organizer’s budget!
Indeed quantity does not mean quality…
In most cases, the real key indicator is the number of contacts / leads / contracts, etc signed thanks to the event. But how to measure this? certainly not scientifically, but by talking to your exhibitors, both those who sign for the next session… and those who don’t!
This is one of the most interesting subjects coming up at recent industry conferences. Another twist: the growing use of virtual events allows organisers to offer a “pay per lead” model analogous to the way in which Google charges its advertisers. How long before those virtual exhibitors start to ask for pay per lead pricing in real, physical exhibitions?
During the European Seminar in 2008 Peter Hazelzet provided an interesting case study of reversed discounts at Sial. Making discounts few weeks before the exhibitions (especially if a lot of space has not been allocated)could lead early bookers to complain. why don’t we consider the opportunity of announcing sqm price increases before the exhition? this could immediately boost sqm sales (at the old price) and generate higher revenues (at the new price)
Interesting point Giovanna. To some extent, it seems to me that these things will depend on the strength of the show. If an organiser can be confident that a well-established fair will be sold out (or close to), then they can choose strategies like this which push customers towards earlier booking. It’s much harder for newer events which are still being built up. Perhaps for those, some of the variable space pricing schemes are more fruitful for maximising yields.