Cost, volume and price are the most important factors for trade shows, according to JWC's Jochen Witt.
Witt demonstrated how slight alterations in the fixed price of an exhibition can affect profit dramatically.
"We are quite fixed in our thinking, and need to look at other industries for inspiration. Price is the most important profit driver as price goes directly to the bottom line. Finding the right price is complex but extremely rewarding,"
Witt added that increasing price means little for exhibitor spend, but the effect on the organiser's pocket is substantial.
Competition should not be the decisive factor in pricing, he continued. "There's a lot of names for pricing strategies, but pricing must be sustainable long term, allow profitable growth and provide customer satisfaction."
Witt dismissed the benefits touted for certain pricing strategies, including 'early bird discounts', which he argued are mainly unless. "Sales people feel in their comfort zone giving these discounts. However, it's money thrown out of the window. Exhibitors mostly choose to book early to ensure a good space in the hall."
Witt also dismissed values attributed to stand placement. "Different sized companies choose predictable sizes. It's key to measure the value of your service to your exhibitors and their willingness to pay."
He added: "The value of the exhibition is driven by the number and quality of visitors arriving at booths. Value drivers differ from show to show. Sometimes, for example, exhibitors will pay a premium for more build up time on their stand. Finding out exactly what they find valuable is key."
Witt concluded that discovering your show's 'inflection point' - where its value perception drops suddenly - is crucial.
