A virtual press conference from Sound & Video Contractor

Addressing today’s economic environment!

With industry (Tradeshow and Event Services) revenues down thirty (30%) to fifty (50%) percent, real unemployment closer to twenty (20%) percent (BLS rate (10%) PLUS short-term and long-term “discouraged workers?), and GDP down four (4%) percent, it’s extremely important to consider how one’s organization is going to adjust and overcome these issues.

Unfortunately, the talk of coming out of the recession is still just an emotional response. Capital investment and lending (aka GROWTH) have come to a near standstill. Instead companies (aka clients) are still contracting; shrinking sales, layoffs, budget cuts, etc. New product development (and “introduction?) has also slowed dramatically (lack of capital investment) or is being “stretched? over longer periods with fewer products coming to market. Sales and marketing budgets are also being trimmed. The emotional influence driving these actions/decisions is FEAR.

What does this really mean?

Most business decisions are based on a risk/reward analysis, whether researched and analyzed by the finance department or just in one’s head. With the overall forecast being pretty gloomy, or the reward side of the equation somewhat dim, it shouldn’t be surprising that the risk side of the equation may respond in fear based decisions.

Alright, enough with the psycho-babble; in English this means that companies (aka clients/customers) may chose to stretch their sales and marketing costs across smaller, more frequent “investments?; in other words, spread their risk. Whether or not it produces the desired ROI isn’t weighed into the equation as much.

Some considerations:
1. Event (tradeshow) expenses usually appear as a single entry on the consolidated income statements, or the statements the decision markers review.
2. These entries appear very LARGE in comparison to other sales and marketing expenses (aka percent of expense).
3. Versus other forms of sales and marketing, the cost per “touch? or “reach? is fairly high (aka ROI).
4. We (the industry) understand the closure rates (sales & ROI) can be very high with the products and services we provide.
5. But, unfortunately this isn’t connecting well with the gloomy economic outlook or fear.
6. In other words, the value exchange HAS been affected.

With regards to “taking care of your own? events, the current political environment does not look kindly on these events. Organizations (clients) realize there is significantly greater risk associated with these types of events.

Social events follow the same trend; economic concerns affect one’s personal environment, maybe even a greater impact. Also, please be careful not to interpret “noise? (aka interest) with actual business.

Solutions:
1. Understand and respond to the shrinking; don’t act like it doesn’t exist. In other words, rethink your business model and adjust to the current economic environment.
2. Discover or rediscover your place in the marketplace (“niche?) and sell-out to that position – be the “go-to? solution. Because you had this position in the past doesn’t mean it still exists. Unfortunately, some “niches? are just going away.
3. Rethink / re-identify your CUSTOMER on a cost basis.
4. Address your SUPPLY CHAIN (internal and external) – your product offering.
5. Breakdown your business into parts, tighten expenses on a segment (of the business) basis, and maximize productivity.
6. Think outside the box.

In this environment, we have to work smarter not just harder.

Bo Klune
Klune & Company, LLC
404.803.9892
bo@klunecompany.com
www.klunecompany.com

Digg Syndication Del.icio.us Syndication Google Syndication MyYahoo Syndication Reddit Syndication

Related Topics: News

Christie Displays Broad Advanced Technology Solutions for Government Sector at GTEC 2014
Pexip Infinity Expands Remote Education Capabilities of Texas Education Telecommunications Network
Triad Speakers Introduces R-Series – it’s Most Cost-Effective In-Ceiling Line to Date
FSR Demonstrates Ever-Expanding Leadership Role In Education Market With Launch of Dedicated Website
Estonia Public Broadcasting Achieves “Best Sound Ever” with HARMAN Studer’s Vista 5 M3 Digital Console
Martin Audio OmniLine Solves Problems For St. Andrews Cathedral
D-Tools and SpringDeck Form Strategic Partnership
Extron Now Shipping DisplayPort to HDMI Scaler with Audio De-Embedding
Deluxe Toronto Demonstrates Commitment to World-Class Quality, Outfits New Facility with HARMAN’s JBL M2 Master Reference Monitors, Crown Amplifiers and BSS Audio Processing
Meet Smarter: Kramer introduces the VIA Family of Collaboration Products

About

Stay up to date on the latest technology news. Select press representatives post company news several times a day. Check back often to get the latest news on product releases, mergers and acquisitions, and product applications. To be included in this virtual press conference, please contact The Wire.

Calendar

January 2010
M T W T F S S
« Dec   Feb »
 123
45678910
11121314151617
18192021222324
25262728293031

Your Account

Subscribe

Subscribe to RSS Feed

Subscribe to MyYahoo News Feed

Subscribe to Bloglines

Google Syndication