In 2020 the exhibition industry has been devastated by COVID-19. Exhibitions are slowly starting to return, but live marketing budgets will be tighter than ever. Brands will be looking for a better deal, trying to get more for their money.
In an aim to find a ‘better’ solution many brands will send out more tenders to more designers, requesting a free pitch in order to secure their business.
Pitches cost design firms an average of 10K per pitch. In normal times good companies win approximately 40% of the pitches. During the Global Financial Crisis (GFC) I saw the win ratio drop to single digits.
The same thing happens to profits margins. In normal times the average profit margin is 35%. During the GFC I witnessed this fall to under 20%.
If the average job is worth about 40K at a margin of 20%, you are making 8K profit per project.
If your winning 1 in 10 projects and each project costs about $1500 to pitch (for smaller projects), you’re losing 7K on every stand you win.
Design firms like Expo Centric will feel this pressure.
Exhibition stands are more than a pretty picture. Good design comes from a partnership between designer and client, where communication and research are carried out to create a comprehensive brief prior to the designer starting a concept. The most remarkable results are achieved when clients and designers work in collaboration. It’s a win/win.
When a client sends out an email brief to 10+ companies asking for a ‘free pitch’ without allowing any direct interaction, this is commoditising the industry and under valuing what we do.