Thread: The Vendors Letter to Axpona

Open letter to Joel Davis of JD Events

Dear Joel,

Hi-Fi Shows have long been an important and familiar part of the audio landscape, as important to manufacturers and magazines as they are to consumers. But the shadow of the Covid-19 pandemic has clearly altered that landscape out of all recognition.

Large segments of the US (and World) population are enduring limitations on travel and social interaction. Governments and city administrations are banning audiences from sports and cultural events, with many major festivals and conferences that were scheduled between now and the end of the year already choosing to cancel. Public willingness to travel or attend live events is dramatically reduced, and the health risks of doing so are well documented.

Unfortunately the conclusion is as inescapable as it is serious. With no widespread testing or vaccine in sight, there will be no quick return to normal. According to economics experts the economy is nowhere near re-opening, and we are all looking down the gun barrel of a recession.

The postponement of Axpona from April to August this year partially recognizes this reality, but we do not believe it truly reflects the gravity of the situation faced by your exhibitors. Any suggestion that the industry want and broadly support the idea of a show in August is also wide of the mark.

Far from supporting your exhibitors, clinging to the prospect of holding Axpona in August is actually making their situation worse. Facing the almost total loss of at least three-months’ revenue, the resultant drain on available cash and the additional costs of re-starting supply and production, many companies are facing a critical cash-flow crisis.

Even once business re-starts, consumer confidence is likely to be cripplingly low, directly impacting revenue for the rest of the year. The risks of social interaction and communication, as well as the substantial additional costs, make attending any show in an effort to stimulate sales a very real threat to both exhibitor and business health.

Visitors (and please remember that many audiophiles are in the most vulnerable demographic groups) will have similar health concerns, especially as regards the risks of travelling to and attending such an event, with the small rooms and crowded nature. Press will be similarly inhibited, and the prospects of a positive visitor experience, decent levels of attendance, or coverage are clearly minimal.

The whole world is facing a health and economic crisis – and the audio industry is no different. Supporting the industry that Axpona serves means helping hard-pressed companies by cancelling the show and releasing the money they paid in advance for an event that will not now happen.

Under the circumstances we feel that it is no longer reasonable or responsible for JD Events to try to use the promise of a postponed Axpona show to withhold exhibitors’ (in many cases desperately needed) funds, and we urge you to follow the lead of other events and announce the cancellation of the show immediately.

Even if you do not cancel, the fact that you simply cannot deliver the show as originally sold (in terms of attendance or coverage) means that all exhibitors should be offered the option of withdrawal and an immediate refund.

We are confident that this would be as widely welcomed as it would be appreciated, a genuinely positive step towards preserving your exhibitors and the possibility of next year’s event.

Yours Sincerely,
Jolanta Conti, Basis Audio
Elliot Goldman, Bending Wave USA
Florian Cossy, CH Precision
Irv Gross, Constellation Audio
Don Better, Don Better Audio
Scot Markwell, Elite AV Distribution
Sandy Gross, GoldenEar
Alvin Lloyd, Grand Prix Audio
Jeff Rowland, Jeff Rowland Group
Peter Mackay, Magico
EveAnna Manley, Manley Labs
Leland Leard, Music Hall
Paul McGowan, PS Audio
Jean-Pascal Panchard, Stenheim
Charlie Schnyder, Stereo Haven
Bill Low, The Quest Group (dba AudioQuest and GoldenEar)
Todd Sutherland, Vivid Audio
Luke Manley and Bea Lam, VTL
Lily Luo, XLO International
David Komatz, Dick Diamond and Kerry St James, YG Acoustics



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Eveanna Manley made it quite clear in her AXPONA interview she wasn't coming, The video is on AXPONA FB page, she didn't mix words.

The XFL called off the season and filed bankruptcy, most sports have not made anything definite, just makes sense to cancel AXPONA since just in August and Chicago is a Hotpoint for Illinois.

That’s quite a list. I’m actually surprised the list is not longer.

I briefly considered attending after Munich was cancelled. But I quickly decided that AXPONA in August nor RMAF in the fall would make sense in 2020.

Maybe next year!

This is an incredibly difficult situation. I hope all parties can work it out.


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I wonder how many purchasing decisions are made based on a show demo. I have attended some in the past, but never purchased anything based on what I heard there. All my purchases were based on magazine reviews, and comments on audio forums. So far that has worked quite well.

Originally Posted by nicoff

Ideally, the promoter should listen and cancel the show.
Now, here is a what-if. If the promoter decides not to cancel the show, and the companies that signed that petition decide not to attend the show, nobody will attend... but would those exhibitors be willing to attend that show the following year after being stiffed this year? I would say no.
And maybe someone needs to move his show to fill that slot... hey Mike?!

It’s much more complicated than that. Their show literally couldn’t have come at a worse time given C19. They would have had to likely pay the hotel the final check back in January or early February. The hotel contracts in generally are NON-REFUNDABLE. They’ve spent untold thousands on marketing, signage, show programs, bags, etc., etc. All non-refundable.

On the flip side, the manufacturers would have paid their final deposit back in January or February too on their rooms. They too are out advertising dollars, money on their show rooms, sleeping rooms, maybe flights and more.

It’s really a sad situation and I can see the challenge for both sides.


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Originally Posted by Pearce Harrison

Nicely written letter.
Another attorney recently sent a letter to a show organizer reminding that party of something called ‘Force Majeur’ under the law...it was surprising how quickly that organizer cancelled that show...and refunded all of the monies.
Maybe this is what needs to happen in this circumstance as well.

force majeure is usually used as a defense NOT to refund and force majeure language is specifically spelled out in the contract between the hotel and organizer.

The contract between the hotel and organizer typically would list reasons for cancellation and force majeure examples would not constitute justification for a refund because it’s beyond the hotels control. That then becomes the issue.


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Interesting article. Since we don’t know the particulars of the contract, we can only speculate.

It would be nice if the hotel would allow a one year delay. That could help and provide an option to the organizers. That being said, based on the language in the letter, it appears that the exhibitors were seeking a proper immediate refund and outright cancellation.

Again, I feel bad for both parties. Nobody could have foreseen these awful events regarding C19.


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Originally Posted by Pearce Harrison

Mike, the letter wasn’t sent to the hotel in the example I gave.

I didn’t say it was. What I said was that the organizers have a contract on both sides. They can only reasonably refund the exhibitors if they themselves get a refund from the hotel. Both contracts likely include Force Majeure clauses. The question however remains, is it a force majeure situation? The hotel may say no refund due to circumstances beyond their control. The organizers in turn, may say the same to the exhibitors. And let’s keep in mind, the organizers are out tens of thousands on advertising, marketing, show guides, signage, badges, etc. This is where the situation gets tricky and remains VERY unfortunate.

Not being a lawyer, I don’t know the answer. However, it would seem that a world wide COVID-19 outbreak would be outside any normal contractual obligations.

I had a booking at a downtown Chicago property for September.
They promptly cancelled my booking and processed the refund last month.

I don't expect a hotel like The Renaissance to not work out something with Axpona organizers.
In my opinion Axpona needs to stop wasting time and get on with cancelling the show.
Any plans of holding a show in 2020 is completely delusional.

Kudos to the Munich High End society for being clear about their cancellation decision.



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Originally Posted by Nikhil

I had a booking at a downtown Chicago property for September.
They promptly cancelled my booking and processed the refund last month.

I don't expect a hotel like The Renaissance to not work out something with Axpona organizers.
In my opinion Axpona needs to stop wasting time and get on with cancelling the show.
Any plans of holding a show in 2020 is completely delusional.

Kudos to the Munich High End society for being clear about their cancellation decision.



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And hopefully the hotel refunds the organizers too.

Originally Posted by Mike

And hopefully the hotel refunds the organizers too.

The hotel is not going to do that unless there is a formal request from Axpona.
Unless they decide to close their premises due to C19 and then refund all bookings.

Axpona has to challenge and get them to the discussion table. The longer they delay the more they play into the contract terms. In hind sight they should have jumped on top of this a few weeks ago if not earlier but nobody knew how this was going to pan out. They do have leverage as a repeat customer with the business of future shows in the balance.



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Originally Posted by Nikhil

The hotel is not going to do that unless there is a formal request from Axpona.
Unless they decide to close their premises due to C19 and then refund all bookings.

But even if it's a non-refundable, Axpona has to challenge and get them to the discussion table.



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This was posted by someone on Facebook about the discussion. It’s a very valid point:

”While I agree that many of the manufacturers could really use the money they have invested in the show, the situation from the perspective of AXPONA may not be nearly as clear. They simply may not have the money as deposits likely have been paid out on their end. Furthermore, it isn't guaranteed that insurance policies will cover any loses should they cancel. You can easily see what happened with Mobile World Congress who's insurance deemed this pandemic as not being covered as proof of this point.”

Having negotiated contracts with a big hotel corporate for events, they won’t give an inch. I could write a book on the minutia which lead to strong discussions with the hotel and in many cases, they wouldn’t give an inch - especially where it cost them a nickel.

I absolutely feel bad for the exhibitors. I know they could use the money. Absolutely, 100%. But I’ve run the numbers in my head and I bet Axpona has invested $100,000-$200,000 in marketing, brochures, signage, labor, legal, accounting, etc. that they will never recoup and they are probably looking at $250,000-$500,000 in room costs (their cost from the hotel). Refunding the exhibitors would then also include any profits as well.

It’s important to look at everything from both sides. And we haven’t even begun to look at the massive hotel corporate which is undoubtedly really hurting from C19 as well.

As I said earlier, it’s just a bad situation for everyone and I hope they can all work it out. I know these exhibitors could really use the money.

I just checked The Renaissance Schaumberg Convention Center Hotel website.
Their cancellation policy is right there on the top.

https://marriott-re-2019ncovc.com/

They are allowing changes or full cancellations without charge.




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Originally Posted by Nikhil

I just checked The Renaissance Scahumberg Convention Center Hotel website and their cancellation policy is right there on the top.

https://marriott-re-2019ncovc.com/

They are allowing changes or full cancellations without charge.




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Like I said, the devil is in the details. Did you see this on the link you posted:

“Please note that this policy does not apply to travel associated with a Group booking. For guests with Group reservations (e.g., for meetings, events or conferences), please review the booking rate rules and contact the group organizer for more information.”

Hotels treat events/conferences totally different than Joe Q Public booking a room for the weekend with the family. For events/conferences, they will ONLY RELY on the contract. Trust me, every time we would bring something up, the first words out of their mouths were “well, in the contract, it states...”

I knew that last post was a mistake as it would not apply for a show booking.
Perhaps it would be better to delete it.


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Originally Posted by Nikhil

I knew that last post was a mistake as it would not apply for a show booking.
Perhaps it would be better to delete it.


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No, it’s ok. This is all a discussion. No right or wrong, only a difficult situation for all parties involved.

i've been in an Auto Dealer group for 25 years that meets at resort hotels 3 times a year for meetings. we had cancelled our March Florida meeting and were able to get out of the contract by pushing it forward 2 years to the next open date. we have now cancelled our planned July meeting too, in Napa, but are not able to get out of that contract even offering to push it forward to an open date in 2 more years. contracts are contracts and every hotel approaches this differently. we may end up getting some relief, but maybe not.

there are two sides to every equation. commitments come with risk.

Originally Posted by Mike Lavigne

i've been in an Auto Dealer group for 25 years that meets at resort hotels 3 times a year for meetings. we had cancelled our March Florida meeting and were able to get out of the contract by pushing it forward 2 years to the next open date. we have now cancelled our planned July meeting too, in Napa, but are not able to get out of that contract even offering to push it forward to an open date in 2 more years. contracts are contracts and every hotel approaches this differently. we may end up getting some relief, but maybe not.

there are two sides to every equation. commitments come with risk.

And no refunds was still the result in your situation.

Originally Posted by Mike

And no refunds was still the result in your situation.

individuals were able to cancel rooms. but the group is having to underwrite the food and room guarantees in the contract; an upper-5 figure expense split among all the dealer members. there are long term consequences to the hotel for their decision; the company who the group retains to oversee the organization has dozens of dealer groups and it's a significant book of lucrative long term business for these resorts. so playing hardball is likely a result of lack of ability to do otherwise by the resort, not a choice they would choose to make typically. they will pay in future business. OTOH the whole idea of these resort meetings might be re-thought by our group going forward. we have been doing Zoom meetings weekly and i could see that becoming normal.

after 27 years of this 3 times a year i never need to do one again; personally. i'm ready for some social distancing.

If you pay attention to what is going on in the rooms there are definitely people buying at the show. One year KEF sold a bunch of LS50's they brought, I saw a Legacy rep finalizing a deal on a set of speakers and I heard a comparison of the 4367 to the Salons that told me my preference was the 4367, just my taste. A few example. Information is very helpful, I spoke to several streamer companies, which helped me to eventually make the right decision.

I'm not in the business and most of the time not looking to buy but I still attend and enjoy the experience. But I'm an audio nut. You also get to hear brands not in your area, exposed to new gear, meet reps and designers, I find audio shows very worth while.

[ QUOTE=BlueFox;300340]I wonder how many purchasing decisions are made based on a show demo. I have attended some in the past, but never purchased anything based on what I heard there. All my purchases were based on magazine reviews, and comments on audio forums. So far that has worked quite well.[/QUOTE]

If you pay attention to what is going on in the rooms there are definitely people buying at the show. One year KEF sold a bunch of LS50's they brought, I saw a Legacy rep finalizing a deal on a set of speakers and I heard a comparison of the 4367 to the Salons that told me my preference was the 4367, just my taste. A few example. Information is very helpful, I spoke to several streamer companies, which helped me to eventually make the right decision.

I'm not in the business and most of the time not looking to buy but I still attend and enjoy the experience. But I'm an audio nut. You also get to hear brands not in your area, exposed to new gear, meet reps and designers, I find audio shows very worth while.

[ QUOTE=BlueFox;300340]I wonder how many purchasing decisions are made based on a show demo. I have attended some in the past, but never purchased anything based on what I heard there. All my purchases were based on magazine reviews, and comments on audio forums. So far that has worked quite well.[/QUOTE]

AXPONA has been helpful to me in meeting dealers/manufacturers and feeling positive about my commitment to a current or future purchase and staying in the line. It's also helped me in meeting some, or watching their interactions with attendees that cause me to avoid that line, regardless of its press/regard in the industry.

For me, it's not only about the product, but the people behind and representing that product.

I still have my hotel reservations for August, but it is very unlikely I'll be attending, regardless of whether the show happens. Over 60, diabetic...definitely in the "phase 3" category.

I have bought things that I've listened to at shows (both equipment and music). That being said, AXPONA can do as they wish but it's the long term damage to the show they may have to worry about. Forcing exhibitors to pay in full, whether they exhibit or not and the likely smaller attendance is not going to make brownie points with their exhibitors. I'd expect that until there is a vaccine (which is likely a bit off), there is not going to be tons of interest in these type of events in the near term and it goes beyond just audio shows. Given the state of things, I would think the show organizers would want to recoup their money invested for the show and be happy with such a settlement. There are other ways that exhibitors could spend their money on for promotion going forward (e.g. advertising, visiiting local audiophile clubs, etc.). They really should look at this long term. Is it really worth it to lose a bunch of exhibitors going forward.

There is no insurance policy unless you buy insurance and then you fully need to understand the exclusions.

Back to both sides, everyone loses, and if the show goes on everyone wins.


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The podcast John Darko did with Stefan Dreischarf who organizes the Munich High-End show clearly puts into perspective how the AXPONA show should be handled.

https://soundcloud.com/johnhdarko/mu...-what-happened

Originally Posted by metaphacts

Sadly this is really simple. Unless Axpona can either make exhibitors whole or provide a show with promised results (not happening), there will not be another Axpona of any consequence.

To be blunt, hotel contracts have nothing to do with it. You either take care of your customers or you don't.

I think that is the prudent thing to do, I totally agree and I know the manufacturers and other exhibitors would really appreciate it.

However, what if they don’t have the money? Unless they have a money tree in the backyard, it’s going to be difficult. I was simply trying to show the possible economics of the whole situation, and ultimately, the timing was just really bad. The shit literally hit the fan with this virus 30 days before the show. Terrible timing. All monies collected. All monies paid. All contracts signed. Bad timing of the virus.

Ironically, do you remember in 2018, Axpona was trying to move their show to the October time frame for 2020? Everyone got in a flap and they changed their minds? If they had kept it in October, they wouldn’t have even collected the money by now and nobody would be in this situation today.

The announced move:

https://parttimeaudiophile.com/2018/...fall-schedule/

After the public flap:

https://parttimeaudiophile.com/2018/...riginal-dates/

There is no insurance policy unless you buy insurance and then you fully need to understand the exclusions.

Back to both sides, everyone loses, and if the show goes on everyone wins.


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Since like Mike says, the money has been already paid from exhibitors and to the hotel. It's a terrible place for Axpona.

A Hotel most likely will not refund any monies now for an event in August. There are some possibilities (small percentage but some) to think that C19 won't be causing a shutdown by then. Now come June if nothing is better and we are still on lockdown, then the Hotel might refund the money. So we are in a time period that wait and see how we are first of June before canceling.

duplicate

While I and sure most others don’t want to see anything negative, any of these companies, especially ones with high overhead can go into formal proceedings, then it’s mute regardless.




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You know what they say about hindsight. Keeping Axpona in the same time was the smart thing. No one wanted overlap, or to have to choose between Axpona or RMAF.

Axpona was growing every year so hopefully we will see a good resolution.

Originally Posted by Mike

I think that is the prudent thing to do, I totally agree and I know the manufacturers and other exhibitors would really appreciate it.

However, what if they don’t have the money? Unless they have a money tree in the backyard, it’s going to be difficult. I was simply trying to show the possible economics of the whole situation, and ultimately, the timing was just really bad. The shit literally hit the fan with this virus 30 days before the show. Terrible timing. All monies collected. All monies paid. All contracts signed. Bad timing of the virus.

Ironically, do you remember in 2018, Axpona was trying to move their show to the October time frame for 2020? Everyone got in a flap and they changed their minds? If they had kept it in October, they wouldn’t have even collected the money by now and nobody would be in this situation today.

The announced move:

https://parttimeaudiophile.com/2018/...fall-schedule/

After the public flap:

https://parttimeaudiophile.com/2018/...riginal-dates/

Originally Posted by LVB

There will be no shows this year, anywhere. And if there will be, they will be empty. Sad, but true.

No more you mean? . There was at least one successful show.

https://www.stereophile.com/content/...-cancel-axpona

Since it seems that JD Events is just Joel Davis and perhaps a few employees, it is unlikely he will be able to weather the storm if the hotel and manufacturers don’t cooperate fully. Manufacturers have been wingeing about the large number of regional shows they need to support for years. Only thing for sure is that the future looks very different.

I wish everyone involved all the best.

Since it seems that JD Events is just Joel Davis and perhaps a few employees, it is unlikely he will be able to weather the storm if the hotel and manufacturers don’t cooperate fully. Manufacturers have been wingeing about the large number of regional shows they need to support for years. Only thing for sure is that the future looks very different.

I wish everyone involved all the best.

We are living in strange and terrible times.

It is the Golden Age of Audio right now, but that Golden Age has been swallowed up by the COVID-19 pandemic so suddenly that it is hard to remember just a few months ago, when 2020 looked like it would be a very good year for fine audio. Unemployment was at record lows; travel to audio shows and interest in high-end audio in general looked strong. The main problem was likely that there were too many shows, and that picking and choosing among them was a challenging proposition.

But not anymore.

2020 will go down in history as "the audio show year that wasn't."

In the USA, COVID-19 cases stand at nearly a million, with about 55,000 deaths as of today (April 26, 2020). We're all familiar with the extraordinary measures that have been taken to resist the spread of the pandemic, and the massive hit that the US and world economies have taken over the past several months. This is a real crisis, unique in the unparalleled swiftness of its attack, and the terrible effects that it has had on a heavily globalized system of business and finance.

The results for high-end audio and its schedule of events has been calamitous.

Pretty much everything after the Florida Audio Expo is now either gone, or is in danger of going. Munich 2020 cancelled commendably early, with full refunds to the exhibitors. AXPONA 2020 has shifted ground from April to early August. THE Show in Long Beach hasn't said what it will be doing about its show during the first week of June. RMAF 2020 is keeping its early October slot open, but Marjorie Baumert has made it clear that if it has to be cancelled, there will be full refunds.

And so on.

And who knows how this will all sort out? Especially in the absence of effective leadership at the federal level.

Right now, however, the main concern is about the high-end audio show that has become the largest in the US over the past few years: AXPONA. Also of concern is THE Show Long Beach 2020.

Having shifted ground from April to August, JD Events…who runs this show…is still standing pat publicly on going on with the event during the first week of August. This is despite the fact that the Mayor of Chicago and the Governor of Illinois have forbidden large events/gatherings of this size. Not to mention the very obvious dangers of trying to hold a large audio show composed mainly of older attendees who are at high risk of contracting, and perhaps dying of, COVID-19. Jamming O'Hare Airport with audiophiles (assuming that the airlines are flying)? Putting them into smaller hotel exhibition spaces over a span of 3-4 days so that they may experience the joys of close proximity? And then letting them scatter to the winds to share with others the blessings of a coronavirus?

Does anyone think that this is a good idea?

Recently, a group of audio exhibitors took the unprecedented step of sending an open letter to Joel Davis and JD Events, asking that he cancel AXPONA for 2020, and that he provide full refunds to those exhibitors who requested it. Given the enormous financial pressure that high-end businesses are suffering, with very serious lost cash flow, this is an understandable and very reasonable request.

At this point, however, JD Events is continuing to hold fast to the early August date for AXPONA. And it is also reportedly refusing to provide full refunds for its exhibitors, arguing that the funds should be mainly pushed ahead into next year, as a kind of prepayment on AXPONA 2021. This is neither wise nor far-sighted, and will most likely lead to a significant push-back from the fine audio community in future years, a thing that no one should be seeking.

I want to be quite clear about Positive Feedback's position on AXPONA 2020.

If JD Events holds AXPONA 2020 in early August, Positive Feedback will not be covering it. I will not be in attendance, nor will PF send any of its writers to Chicago (Dave and Carol Clark, who are partners and managing editors at PF, will also not be attending). No coverage of AXPONA 2020 will be published here at Positive Feedback.

We urge Joel Davis and JD Events to do the right thing, cancel the AXPONA 2020 show, and offer any AXPONA exhibitor who requests it a full refund on their prepayments for that event. This should be done without any penalty of placement or reservation for 2021. Those exhibitors who are amenable to having that balance paid forward for AXPONA 2021 can certainly request it, but it should not be mandatory. Let the exhibitors choose their option.

Likewise, we urge Maurice Jung and those involved with THE Show Long Beach 2020 to cancel their event along the lines stated immediately above.

This is an unprecedented statement on our part, but these are unique times, and require extraordinary actions to share the communal pain of this pandemic.

We all share a common passion for music and the possibilities of the audio arts. For the common good, Positive Feedback believes firmly that audio shows in the USA should follow the lead of the High End group in Munich, and the stated intent of the Rocky Mountain Audio Fest.

So say I, and so should say all those who love high-end audio and its supporting events.

Let us hope for better days in 2021.

On behalf of the Positive Feedback editorial and review community,

Dr. David W. Robinson

Editor-in-Chief