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Tradeshow Industry In Trouble? Not According To CEIR Prez

Read this past week – A white paper by Douglas L. Ducate, CEM, CMP, president and CEO of the Center for Exhibition Industry Research (CEIR) questions whether the exhibition industry is a troubled one. The paper was penned on the heels of news accounts published in Chicago suggesting that the exhibition business is a troubled industry.

Expo laser

Ducate takes exception to what some suggest is a flawed business model. Rather, he believes that what some call a business model is truly a set of business practices related to pricing and customer treatment. The paper provides a brief history of exhibition centers and the reasons for exclusive contracts.

When it comes to business practices, Ducate suggests three fundamental principles of business that apply to most industries, including the exhibition business:

  • Preferred customers get preferred treatment.
  • A cost is incurred for entry to a market.
  • Supply, demand and competition determine price.

The paper addresses each of the above principles as they relate to the exhibition industry. Ducate provides rationale on why current business practices are not troubling and how they are common to all industries that rely on sales.

“It is no more reasonable to expect an organizer to explain their pricing model than it is to expect a publication to explain their advertising pricing model,” stated Ducate. “Advertising rates for electronic publications, in many cases, are the same or greater than they were for print publications and yet, clearly, the costs associated with producing and distributing that advertisement are considerably less for electronic publications than they were for print publications.”

The paper was written with a disclaimer noting that the opinions expressed in the white paper are solely those of the author and do not necessarily represent an official position by CEIR or any other organization.

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