Exhibition Stall Fabrication in India – Is it going through a ‘PRICE WAR’?
Exhibition Stall Fabrication – Facing Price War!
In an ever-changing and dynamic market of Exhibitions, companies use a wide array of tactics to lure customers from competitors. More often then not, Price is the weapon of choice used by Exhibition Stall Builders to close deals. Price, as a weapon, can cause an open Price War, even in a perfectly competitive market. Price wars can create economically devastating and psychologically disturbing situations that take an extraordinary toll on an individual, a company, and industry profitability.
WHAT CAUSES THIS PRICE WAR?
Working in diverse industries like Metal, Telecom, Power & Transmission, Agri Products, and Exhibitions for the past 20+ years has given me the opportunity of witnessing the cyclic ups & downs of each industry closely. Price wars, especially during an economic slowdown, have been omnipresent in each industry. There are certain stark differences between Exhibition Industry and other industries. Following are the aspects unique to the Exhibition Industry:
Low or No Entry Barrier:
A mobile phone is all it takes to start a fresh business in the Exhibition Industry. Shocking but true, ‘Your’ employee sitting in ‘Your’ office may be running a side business, poaching your clients in the evening, probably, by using the Mobile provided by you. Such FLY-BY-NIGHT players spoil the market by approaching the clients directly and offering prices that are beyond comprehension. They do so with impunity because they have no overheads to take care of.
Lack of Authenticity of the Stall Builder:
In order to contact a prospective customer, any Stall Builder company or marketer primarily uses the following means:
1. Last Year’s Exhibitor Directory, sourced from Exhibition Organiser
2. Visiting Card exchanged during previous exhibitions
3. Data sourced from data selling agencies.
Each Exhibitor, on average, gets around 100 calls and a similar number of emails, from numerous Stall Builders. It is difficult for the exhibitor to assess the authenticity of the caller and gets lured by the low pricing quoted by the new entrants and FLY-BY-NIGHT operators.
Customer’s lack of understanding:
Oversimplification of difficult tasks and execution in the mind of the Exhibitor is also a prime cause of low price expectations. The exhibitor is also not able to match the number of days of use at the site and the amount demanded by the Stall Builder. Some of the Exhibitors equate the Stall Builder’s work to that of a carpenter and thus calculates the cost accordingly, which comes quite low.
The world is not all Black and White, and you can still bring back your client from the DARK SIDE of Low Pricing and its pitfalls, so to say. If you implement a few easy steps in your course of negotiations you will be able to steer clear from the eye of the storm, called PRICE WAR.
Will share the ways and means to steer away from unnecessary PRICE WAR in the next article. A Glimpse into the next article:
This article has been penned by Mr. Ankur Sarin.