The Vendors Letter to Axpona

Nikhil said:
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.
 
Nikhil said:
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...”
 
Nikhil said:
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.
 
Mike Lavigne said:
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.
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And no refunds was still the result in your situation.
 
Mike said:
And no refunds was still the result in your situation.
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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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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.
 
metaphacts said:
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.
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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/2018/09/10/axpona-2020-moves-to-overcrowded-fall-schedule/

After the public flap:

https://parttimeaudiophile.com/2018/09/19/axpona-2020-moves-back-to-original-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.
 
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