RANT MODE Re: [BC] Convention Costs

[Mike McCarthy]

Hi Barry,

Let me say this, these silly ass outragous gouging costs for bottled 
water and food are really bad (even to me) and will ultimately kill 
the golden goose conventions bring. Same thing for other "services" 
which are convenience in nature to those willing to pay whatever.

One thing which many folks don't see/understand are the costs needed 
to sustain transient operations in a fixed location. With conventions 
openly active/operating only 10 days a month at best, fixed 
infrastructure is there all 30 days and <those> costs needs to be 
recouped. 

Internet access...

If there is a DS3 at $1000/mo, which then gets broken out to mux 
equipment (at say $12K. capital annually) So you have 26 T-1's 
amortized to about $500/year.  Divide the muxing and other hardware to 
around $1K/mo. and you have around $100/mo. per T-1 in outside costs 
and amortization (including nominal taxes.) So assume two shows/month 
and each is around $50 in fixed costs.  Double that for some profit 
and equipment maintenance. Then add $100 in hard labor to cross 
connect and test at the booth. Then add the costs needed to INSTALL 
the cables in the ducts...which is many thousands of dollars.  Then 
add the cost to sustain operation during the show and repair/replace 
things such as CSU's busted/broken/lost during the course of assembly 
or dismantlement. 

Then add on the "custom" nature of most exhibits and how they are 
treated/connected and you have a reasonable idea of why costs can get 
a bit high. I can see charging up to $500 to connect up a T-1 and for 
service during the show.  Several $$$ <a day> is to me outrageous.

As for W-Fi...that's another animal which doesn't have the final 
distribution costs hard-wired booths have, nor the fixed dedicated 
bandwidth affored by a dediciated T-1. So, charging exhibitors $$$/day 
for WiFi is rediculous.

I will agree that there are a LOT of areas which there could/should be 
some reduction in really silly work/house rules.  But most of them are 
the result of an incident with an exhibitor or attendee who got hurt 
or something else and needed cleaning up by management (either show or 
house).

MM


> At 12:43 PM 7/26/2005, Mike McCarthy wrote
> >Being my family is in that trade (two generations running 
contracting
> >operations like GES) and I spent 10 years doing trade shows at 
various
> >places including McCormick Place, I need to comment.
> 
>          Mike,
> 
>          I know you and I have discussed this
>          several times, at least privately, as
>          well as occasionally on the list.
> 
>          It does seem, does it not, a lot like
>          the iboc issue?  That is, there are
>          three or more forces at work here,
>          and they don't seem to connect
>          with each other.
> 
>          There are safety issues.
>          There are show issues.
>          There are political issues.
>          There are union issues.
> 
>          And, there are the difficulties
>          in dealing with the other components.
> 
>          Certainly, if everyone would act in
>          a responsible manner, much as in
>          life, a lot of rules (laws) could be
>          avoided.
> 
>          However .. and it is often not the
>          show managers' fault, the "entrenched"
>          interests can override common sense.
> 
>          The costs shown in the article quoted
>          earlier are silly. $55 for cola, or $77
>          for two dozen waters is just not
>          defensible, even with "service charges"
> 
>          Yes, it is likely the money goes to the
>          city or the convention center. And the
>          anger should not go at the show managers.
> 
>          But, the old proverb about killing the
>          goose that laid the golden egg sure
>          comes to mind. And Chicago has
>          paid, somewhat.  Las Vegas hasn't yet
>          met the karmic accountant.
> 
>          What was it? Hundreds of dollars a
>          day for internet access?  There is a
>          contract with the LVCC, ostensibly so
>          as to avoid conflicts, especially with
>          WiFi... but it really ends up being
>          nothing more than a rip to users.
> 
>          Mike, can you comment on how
>          a supplier would justify charging
>          hundreds of bucks a day for internet
>          lines that are "permanent" to the site?
> 
> 
>          The politicians, who view the conventions
>          as cash