The Vendors Letter to Axpona

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.

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/
 
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/

No doubt the proverbial rock and a hard place.

I found the proposed Fall move terribly ill-conceived. American show operators seem to have little awareness of/concern for the international audio market and associated shows. The failed Fall move illustrated that. It was a harbinger of Axpona accepting the August dates without realizing that they conflicted with the largest attendance consumer high end hifi show in the world - the Hong Kong High End Audio Visual Show. Throw in that a manufacturer can likely meet with most/all of his Asian distributors at HKHEAVS. What should a manufacturer with serious Asian distribution do?

Axpona is in a tough place. I don't see either of those shows actually happening in 2020 so the conflict likely won't matter. There doesn't appear to be a good way out for them or for prepaid exhibitors unless Axpona literally find that "money tree in the backyard" you reference.
 
There will be no shows this year, anywhere. And if there will be, they will be empty. Sad, but true.
 
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
 
While I'm sure it was a difficult decision, this is a good move, especially since Fauci is saying that a second wave of COVID-19 is inevitable....
 
COVID-19 infections are going to look like sharks teeth. We're going to see multiple waves until there's a vaccine. Strap in for long ride.


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As many including myself have suspected, there aren't funds available for full refunds to exhibitors and sponsors. Difficult situation for all parties that I really hope doesn't destroy this show. This is the closest show to me geographically and I have really enjoyed my time at Axpona over the years. Text of the letter to exhibitors and sponsors is below.


Dear AXPONA Exhibitors and Sponsors;
We at AXPONA wish you all the very best during these COVID-19 disrupted times. We care most about the health and safety of you and your loved ones. So many businesses are hurting, the future is unpredictable, opinions are mixed and emotions on all sides are strong. Ultimately we must err on the side of caution and the concern for human safety so it is with a heavy heart for us to announce that AXPONA 2020 has been cancelled.


We know everyone is hurting right now. Many businesses in many industries are being hammered by the impact of this pandemic. JDE in particular is facing a financial calamity due to the disastrous impact on tradeshows. So I need to be transparent with you about the current position of JD Events and AXPONA:


• JDE does not carry business interruption insurance that covers communicable diseases. In fact I am not aware of any US organizers that do. So our losses are not covered.
• We are not a public company, owned by a venture fund, a large media firm or a trade association with deep pockets. We are a small privately held business, operating shows in two other industries which, like AXPONA, are both in peril. Like many of you we are applying for the PPP and disaster relief loans available through the SBA for a temporary lifeline as well as pursuing all other avenues of raising capital.
• High end audio shows are not highly profitable. To do them right they are cost and manpower intensive undertakings. That is why you have never seen a large tradeshow organizer invest in building a show to serve the needs of this industry. JDE however chose to invest boldly in the outlier idea of building a world-class event comparable to Munich in North America.
• We made large investments in multi-platform attendee marketing campaigns, signed a long-term commitment to make the Schaumburg venue AXPONA’s permanent home, hired professional and passionate full-time event management staff, developed and deployed customer satisfaction programs, and so much more that goes on behind the scenes at JDE, all designed to create the best possible customer experience and ROI environment for our exhibitors. We have not yet come close to recouping those investments
• Our exhibit space contract language does not obligate JDE to pay refunds if the event is cancelled due to circumstances beyond our control. The pandemic could not have hit JDE at a worse time. Virtually all deposit monies were spent on producing and marketing the April show, including salaries, overhead and other service providers. Due to the havoc wrecked upon AXPONA and our entire business, JDE is simply not in a position to pay out refunds.


I know everyone would like specific answers now but we need some time to fully assess the current damage to JDE and to pursue additional sources of funding to help us bridge the gap to 2021 and beyond. Over the next several weeks we will be devising a plan for all 2020 exhibitors to rebook their same space, advertising and sponsorship positions in the 2021 event by rolling a portion of their 2020 deposits forward. The amount that we can offer to roll forward will depend on our ability to strengthen our financial position in the weeks to come.


There are no easy decisions in this time. JDE has let good people go and slashed salaries in order to stay afloat. We are deeply invested in and committed to this industry long-term. I hope you appreciate my candor even if you don’t like what you hear and we hope you are willing to work with us as all industry stakeholders must do in hard times. Even though this is a time when we are required to be distant from each other I believe in the long run that this experience will bring us closer together.
On a positive note, we are excited by the response to the “AXPONA Livestream” event on what would’ve been our April 17 opening day. We plan to conduct more virtual events in the coming months to keep the community connected and to provide value at no charge to our exhibitors during this down time.
It remains our pleasure to serve this great industry. Thank you all for your understanding and your support.
Sincerely,


Joel A. Davis
Founder & CEO
JD Events
 
Since JDE manages many trade shows other than Axpona, they are in a real bad situation. I can understand both sides. I really hope everything works out in the end. I’m sure the hotel isn’t playing ball either.
 
I have to wonder if Axpona isn't profitable, then why do it and why take on more than one show. Axpona is said to be one of the largest shows, so how did the other shows provide refunds where Axpona is not able?

I hope as well it all works out but from what I see so far I have my doubts. Sometimes brands have to decide which shows to attend, I don't think it will hurt them to pass on Axpona. On the other hand I'm sure there's other things to factor in, how much of a boost is doing the show for the brand, etc. Not all of the venders at the show are big names though, some are just getting started and many are just retailers showing the brands, they really can't afford the loss, getting it from both ends.
 
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