The Vendors Letter to Axpona

Mike

Mike

Audioshark
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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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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?! [emoji848]
 
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.
 
nicoff said:
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?! [emoji848]
Click to expand...

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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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.
 
BlueFox said:
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.
Click to expand...

I have made at least 5 purchases based upon show demos. Not always the product exhibited but something from the manufacturer that fit my needs better.
 
Pearce Harrison said:
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.
Click to expand...

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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Mike said:
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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Click to expand...

Mike, the letter wasn’t sent to the hotel in the example I gave.
 
Pearce Harrison said:
Mike, the letter wasn’t sent to the hotel in the example I gave.
Click to expand...

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.
 
Mike said:
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.
Click to expand...

The argument should apply to all parties...
Plus, most likely one parties refund/cancellation off set is not contractually dependent on another’s.
 
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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Nikhil said:
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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Click to expand...

And hopefully the hotel refunds the organizers too.
 
Mike said:
And hopefully the hotel refunds the organizers too.
Click to expand...

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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