The trouble with trade shows

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I’ve been attending trade shows ever since I graduated from college. I’ll never forget my first trade show. I went to assist a buyer at a national surf and beach wear show. Needless to say my head was spinning. Since then I’ve attended countless technical and computer industry shows, as well as the circuit of recreational marine industry trade shows since 2003.

Most of the time I’ve spent at trade shows has been on “booth duty”. To use a fishing analogy, booth duty is similar to trolling for billfish. The monotony of standing around twiddling your thumbs is occasionally interrupted by a fish strike, whereby the anglers drop the beers, leap up and scramble to grab a rod.

I’ve never had one of those really cool booths that attracts a big crowd. Scantily clad models and mock game shows have never meshed with my marketing model. I remember how jealous I used to be of some exhibitors though. Back in the mid-90s, the biggest hit at the defense and aerospace shows was Silicon Graphics. They used to bring their F-18 flight simulator, tricked out with surround sound and booth babes to lure in the wannabe fighter pilots. They always drew a big crowd, but where is Silicon Graphics today?

Not all tradeshows are built alike. Some trade shows are “steady” as traffic is good throughout most of the day. Other shows are just plain slower. But as a vendor who markets products to the people that attend various trade shows, there is this compulsion that you “have to be there”, even if the show is traditionally slow or possibly not ideally suited for you. You might miss something or someone. You never know when that perfect prospect will happen by your booth. In addition, you need to be there to let your customers know you are still in business.

I am not buying this anymore. No I am not saying that we are cutting our trade shows altogether. On the contrary we are scheduled to exhibit at the IMI Emerging Applied Technology Show and the Marine Dealer Conference. However I am rethinking which shows to exhibit at and which shows to simply “attend”.

You miss quite a bit by exhibiting and not attending. The most valuable interactions I typically have with people at a trade show are not within my booth, but in the hall between sessions or in the concession areas. People seem more at easy and not guarded as if being sold more cleaner than one could use in a life time.

This year and in 2010 we are going to “walk” a couple of shows that we’ve exhibited at in the past. This week is the International Boat Builders Exhibition and Conference (www.ibexshow.com). We will not have a booth at the show this year. This is a big change for us as we’ve exhibited at this show for the last 15+ years. However in this economy when we are trying to do everything we can to stretch a dollar, I cannot justify the expense of a trade show booth at IBEX. So, I will be walking the show as an attendant. I will still be wearing my company shirt and working to strengthen relationships with people that I connect with. I hope to see you there.

 

Boating: The Good Old Days

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I was listening to a presentation by Halsey Herreshoff at the ABBRA Newport Summer Social on August 3rd. Halsey is the President of Herreshoff Marine Museum and America’s Cup Hall of Fame. Halsey was a four-time America’s Cup winner and the grandson of legendary yacht designer Nathanael Herreshoff.

Halsey was reflecting on the economy and the boating lifestyle in general that he has personally watched evolve over the past 70 years. He believes, and I agree, that boating needs to become simple again. Boating has become too complex, we have far too many systems on-board and the amenities that we think we need on our boats mimic what we have in our homes.

Why do we need granite counter tops, audio/visual systems that rival home theaters, and a host of other electronic and mechanical systems that attempt to replicate the creature comforts found in our homes? What we wind up doing is spending more time maintaining these systems rather than enjoying our boats with our family. While the family sits at the dock, gear in hand ready to disembark, dad is below deck trying to figure out where the beeping noise is coming from.

Halsey argues that in the “good ole days” boating was more akin to camping . The systems were simpler, there were fewer things that required maintenance therefore fewer things could break down. Our technology is far superior than it was years ago which is a good thing. But this has lead many manufacturers to cram as much technology into a boat that they can fit.

Boats in general have become much larger, faster and more luxurious in the last five to ten years. If we re-focus our efforts on boating being an alternative to life on “terra firma”, which in essence is the true appeal of boating in the first place, maybe we can get more people interested in boating again.

Good Energy Day

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Today is 09/09/09 and a movement that got started on Facebook, as well as other places labeled it “Good Energy Day”. Rumor has it that NASA (either the Space Shuttle or the Int’l Space Station) is going to take a picture of earth on 09/09/09 at exactly 9:09:09 am. The question that was posed is: Do you think the earth would glow a little brighter if we all thought good thoughts or did well for one another at the same second?

I went on Snopes to see if this was some kind of hoax and couldn’t find anything about it. Regardless, it wouldn’t hurt to do what the promoters of this cause are asking us to do today:

– Wave and smile to a stranger
– Forgive someone
– Open the door for someone
– Pay the toll for someone behind you

Not bad advice…hoax or no hoax.

Integrity: Making Promises and Keeping Them

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I like money back guaranties. As consumers when we read “no risk” or “money back guaranty” an ease comes over us as we contemplate a purchase. It creates a frictionless buying atmosphere.

According to Wikipedia, the money back guarantee was a major tool of early U.S. mail order sales pioneers in the United States such as Richard Sears and Powel Crosley Jr. to win the confidence of consumers.

As consumers we also know that a money back guaranty only has value if the retailer backs this promise. If the retailer sets up barriers (either intentionally or unintentionally) that make it difficult for consumers to get their money back, then the value of the guaranty is diminished. I am Ok with a time limit (e.g. 30-day Money Back Guaranty) as long as its communicated clearly to the consumer.

At DockMaster we recently posted a job for a .NET Software Developer. When reviewing the various job boards to post this opening we looked at CareerBuilder, Dice, Hotjobs and Monster. From what I could tell, none of these providers had a money back guaranty. Since I read www.joelonsoftware.com and was aware of their growing job board for programmers, we decided to give them a try. I have never done business with these guys, but the money back guaranty is what clinched the deal for me. Their policies are spelled out very clearly on their website.

Interestingly the post didn’t seem to work too well for us. Frustrated, I decided to “test” their money back guaranty. What follows is my e-mail exchange with a Fog Creek customer service rep.

>NAME: Cam Collins
>COMPANY: Exuma Technologies
>
>We posted the following job 19-days ago.
>
>http://jobs.joelonsoftware.com/default.asp?5119.
>
>The resumes have been down right scary. Only two of the resumes were mildly qualified. Is our ad not compelling enough? Could it be the fact that top notch software developers don’t want to move to the technically challenged State of Florida. Joel’s post in Inc didn’t really help the good ole’ Sunshine State much :-). (Hey – Citrix and Gatoraid were invented here :).
>
>Maybe a refund isn’t really what we need. Instead, if we can’t seem to get good candidates down here maybe we should trade-in the ad fee for licenses of FogBugz. This way we can not only see what world-class software looks like, but we can improve internal efficiencies as well.
>
>Thanks for listening,
>
>Cam Collins
>CEO

Hi Cam:

Thanks for your email.  Well, I can’t say that you’re doing anything wrong that I can see; the ad has been viewed by just over a 1000 people.  And I just had a Gatorade this morning and it was delicious, so it can’t be Florida.

We could extend the job posting for you–that puts it at the top again and maybe you’ll get some traction.

As for trading in for FogBugz licenses, I can’t do that for bookkeeping reasons, but we can give you a refund on the job if the second effort doesn’t pan out.  Also, do you know about the Student and Startup Edition of FogBugz?  You can use it for free for up to 2 users.  Just go to Admin -> Your FogBugz On Demand Account and choose that option there once you’ve set up a trial.

Let me know if you would like to extend the job.

Regards,

Dan

The bottom line is that the ad hasn’t really worked for us. I probably will take them up on their offer to use FogBugz Start-up Edition for some of my personal stuff. Who knows we may roll this out at DockMaster (Exuma). Regardless, I remain a fan and that is precisely what they want!

Netflix Culture

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This week I was having dinner in the Boston area with James Tauber, the founder of Eldarion and the Pinax web development platform. We were talking about the Netflix “Freedom and Responsibility Culture” presentation that was published on the internet and how well these cultural points resonate with a Web 2.0 technology company like Eldarion. However, what can the marine industry learn from the forward thinking culture at Netflix?

For starters, whether you are a leading edge web start-up, a printing company or a boat dealer; the fundamental principles of the Netflix Culture are timeless and extend to all types of companies or organizations. Some of the ways that these cultural points are applied may not be for everyone. For instance, Netflix doesn’t track time on the job or paid time off. Instead they focus on what people get done, not on how many days or hours they’ve worked. In many marine businesses and software consulting companies this won’t work since most of them bill based on time and materials, whether its to repair a boat or install a new server.

Here is a summary of Netflix’ Culture:

Values are what we Value – Real values are shown by who gets rewarded, promoted, or let go. (See the Nine Behaviors and Skills in the presentation)

High Performance – Great Workplace = Stunning Colleagues (not day-care, espresso bars and free lunches)

Freedom & Responsibility– Responsible people thrive on freedom and are worthy of freedom

Context, not Control – The best managers figure out how to get great outcomes by setting the appropriate context, not by controlling people.

Highly Aligned, Loosely Coupled – Clear goals and strategy communicated across the company, with limited cross-functional team approvals

Pay Top of Market – One great employee gets more done and costs less than two adequate employees

Promotions & Development – An individual’s economic security is based upon their skills and reputation

I highly encourage you to read this presentation (www.slideshare.net/reed2001/culture-1798664). It is meant to be read, not presented and at 128 slides its more than a light dusting of “feel good” phases.

If you have some interesting cultural points or corporate philosophies that you would like to share please add a comment on www.marinemanagementtoday.com or send an e-mail to camsblog@dockmaster.com.

The American Recovery and Reinvestment Act: What Is In It for You?

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We are barraged with news on a daily basis about the US government’s various bailout plans and other financial stimulus packages geared to get the economy moving again. I have spoken to a number of DockMaster customers that were applying for various state sponsored grants and loans. I was curious about what was being offered, so the first thing I looked at is the much talked about ARRA.

Through the Small Shipyard Grant, the ARRA provides $100 million in supplemental grants for small shipyards. A “small” shipyard is defined as a yard in one geographic location that does not have more than 1,200 employees. These funds are available until September 20, 2010. This program is administered by the Maritime Administration (MARAD). The rub is that this fund is currently closed for 2009. Over 500 applications were received, requesting over $1.25 billion in aid. MARAD will contact successful applicants by August 17, 2009.

Boating Infrastructure Grant Program

The next program I ran across was the Boating Infrastructure Grant Program (BIG). This program provides grant funds to construct, renovate, and maintain tie-up facilities with features for transient boaters in vessels 26 feet or more in length, and to produce and distribute information and educational materials about the program.
The BIG Program includes two funding tiers, Tier One (non-competitive) and Tier Two (nationally competitive). Under Tier One each state, the District of Columbia and insular areas may receive funding for eligible projects up to $100,000 annually. Tier Two funds are made available through a nationally competitive process.

Since the states effectively administer the Tier One funds, the best place to look for these programs is on your state’s official website (e.g. http://www.dbw.ca.gov/Funding/BIG.aspx). The governmental agency designated by each respective governor is eligible to participate in the BIG Program. The agency may partner with local governments, private marinas and others to fund eligible projects.

Tier Two proposals received are reviewed, evaluated and ranked by a national panel with the final decision for funding made by the Director of the U.S. Fish and Wildlife Service. The ranking criteria, eligible projects and regulations are listed in 50 CFR 86. For more information go to: http://wsfrprograms.fws.gov/Subpages/GrantPrograms/BIG/BIG.htm

Small Business Administration: CDC/504

The Small Business Administration has a loan classification called the CDC/504 loan. This program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company (CDC) is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses.  There are about 270 CDCs nationwide, with each covering a specific geographic area.

Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped. For more information check out: http://www.sba.gov/services/financialassistance/sbaloantopics/cdc504/index.html

 

Charleston City Marina Wins International Award and Why this is Important for North America

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On May 26, 2009 in Helsinki, Finland the Charleston City Marina was awarded the 2009 Jack Nichol Award for Design.  This international award is presented annually by PIANC in recognition of excellence in modern recreational marina design, and is named for the late renowned marina designer, Jack Nichol. Established in 1885, PIANC is an organization providing guidance and a forum where professionals can provide expert advice on cost effective, reliable and sustainable infrastructure, and facilitate growth of waterborne transport.

“After considerable discussion and evaluation of the applications,” states Elio Ciralli of PIANC, “the Charleston City Marina best represented the technical, functional, aesthetic and environmental award criteria.”

Robbie Freeman, Managing Partner of the Charleston City Marina adds, “With credit to Applied Technology & Management, our marina design consultant, The City Marina’s transformation has set many new standards for recreational facilities. It is truly an honor to receive this global recognition after years of ongoing improvements.”

The reason I say that this is important for North America is because the United States and Canada have a very large recreational marina community, most of which has been in use for many years.  In the large vessel and megayacht category, overseas marina projects seem to be getting a large portion of the media coverage. This is warranted because in many of these places, like the United Arab Emirates or Central America there is little marina infrastructure, so they can start fresh with the latest floating dock systems, “in-slip” high speed fuel systems and electronic pedestal devices.

In North America, there really aren’t many coastal areas where a new marina can come out of the ground. Therefore existing marinas must be re-built, thus displacing an already loyal customer base who utilizes the existing slips (berths) and marina amenities. However there are some shining examples of marina redevelopment projects that deserve attention. Two of them are just a few miles from the DockMaster offices: Old Port Cove Marina and Rybovich Shipyard and Marina.

Congratulations goes out to The Charleston City Marina for this well deserved recognition from the PIANC as a world class marina destination.

Promote A Cause You Believe In and Everyone Wins

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Last week I received an e-mail from Paul Nickel, the President of Pride Marine Group in Ontario entitled “Boating for the Cure“. Most of the e-mail I receive from Pride pertains to DockMaster, so I must admit that I was intrigued. In the e-mail, Paul describes a fund raiser they are having on June 27th, 2009 to help fight breast cancer and prostate cancer. What I found refreshing was that Paul’s message did not come off as a promotional gimmick that masked a sales event inside of a fund raiser. Sure Pride Marine will benefit from the promotion they will receive by sponsoring this event. But the delivery was heartfelt and Paul openly described this in his e-mail by saying that he wants “to give back to those that are less fortunate or suffering”.

So here is my take on how promoting a cause and one that truly his meaning for you can be a win-win for everyone.

Find a cause you truly believe in and tell the story

Picking a cause to get behind simply because you think it will help sell boats or whatever it is you are marketing is a recipe for disaster. You’ve got to get behind something you are passionate about. Promote a cause that has affected you personally or someone you know. Your passion and drive will show through in not only how you promote your event or fundraiser, but your sincerity will come through during the process, stimulating creative ideas that will make the event meaningful.

Connect with people

Once you decide the cause you want to support, you’ve got to connect with your customers, friends, and the community at large; especially those effected by the affliction that you are trying to raise awareness for. In the case of Pride Marine Group, they partnered with Edgewater Boats and the Town of Gravenhurst.

Lead the Movement

To get the word out and generate excitement you’ve got to do what Paul did and make a personal commitment to the cause and the event. This goes beyond “marketing” whether you use traditional or web-based techniques, but it means that the business owner truly puts some skin in the game. In the case of Pride Marine Group, Boating for the Cure will be a one day event held on June 27th, 2009 in the format of a family boating rally around Lake Muskoka. Participants will be collecting treasure maps to guide their journey and tokens which will be turned in at the end of the day at an awards ceremony and reception. All monies raised by pledges from supporters will be donated to the Canadian Breast Cancer Foundation and Prostate Cancer Research Foundation in support of cancer research. The event is being paid for by Pride Marine, with sponsorship from Edgewater and the Town of Gravenhurst.

Make a compelling offer that truly adds value to your customers, the charity and the community

On top of the fund raiser being held on June 27th, Edgewater Boats will be running two special editions of their 145cc boat – one pink, one blue, to represent the fight against cancer. For every special edition “Boating for the Cure” 145cc sold, $1000 will be donated to the Canadian Breast Cancer Foundation (pink boats) or the Canadian Prostate Research Foundation (blue boats). I am a prostate cancer survivor. If I were in the market for a 15′ boat, you’d better believe Edgewater would be at the top of my list. This is an enduring statement on the part of Edgewater in that once June 27th, 2009 has come and gone, these themed boats will live on as a symbol of one’s desire to stamp out a tragic illness.

If you are having a fund raiser that is tied to your business and would like us to promote it on www.marinemanagementtoday.com, please e-mail camsblog@dockmaster.com with more details.

Risk, Ambiguity and the Small Business Owner

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Readers of this blog typically fall into two categories:

1). You are an owner/operator of a small business
2). You work for an owner/operator of a small business.

Most of these businesses happen to be in the recreational marine industry, an industry that has been hit especially hard by the current recession. What causes stress and anxiety in our professional lives? Typically, it’s “fear”. We fear what we don’t know or don’t understand. In a volatile economy, these fears are heightened because we can’t predict with any level of accuracy what’s around the corner. One’s ability to “predict the future” is never very accurate. However it’s not the risks inherent in our businesses that cause our blood pressure to rise, but it’s the inherent ambiguity in any entrepreneurial endeavor. One’s ability to contend with and manage ambiguity is the true test of the small business owner or entrepreneur.

The “risk” of running your own business

What keeps people from starting their own company or taking the entrepreneurial plunge? “I don’t think I can handle that much risk,” is what most people say. They are afraid to leave their “stable, comfortable” job, unaware of what awaits them when they step out of their office one last time.

In his interview with Inc., Good to Great and Built to Last author Jim Collins was asked by Bo Burlingham if entrepreneurs must inherently understand how to manage “risk”. Collins responded as follows:

“Not risk. Ambiguity. People confuse the two…. As an entrepreneur, you know what the risks are. You see them. You understand them. You manage them. If you join somebody else’s company, you may not know those risks, and not because they don’t exist.”

At a time when even giants from insurance and automotive industries are tethering on the brink of collapse, Collins couldn’t have made his point any clearer. Job security is a scarce commodity these days regardless of your industry. Ambiguity breeds opportunity.

Let’s say you were presented with two fists full of marbles. The right fist contains five red marbles and five blue marbles. The left fist also contains a total of 10 marbles, all of which are red or blue, but the number of red and the number of blue marbles is unknown. For instance there could be nine red and one blue, etc. Invariably, when given a choice of which fist to pick either a red or a blue marble out of, people chose the right fist. On the surface, making the choice that offers 50/50 odds seems obvious. In reality, one is just as likely to pick the correct-colored marble from the left fist, with an unknown mix of marbles.

 

This is known as the Ellsberg paradox. The right fist has a “risk” of 50/50. The left fist is “ambiguous” since you don’t know the odds. The preference to the “known” 50-50 risk is characterized as ambiguity aversion. In other words, people tend to “stick with the monster they know and avoid the monster they don’t”. The outcome is ambiguous.

What suits your personality and goals? You can choose to be your own boss or choose to support your boss. The choice is yours, but sitting on the sideline and complaining about the economy or management’s decision to make necessary (and often difficult) business changes is not an option.

Choosing to be your own boss

Taking the path of the self-employed takes guts. No doubt it’s a financial gamble. You might have to endure years earning income below what you’re used to, forcing yourself to live frugally and having to sacrifice your vacations. You would have to learn how to handle all aspects of your business, from convincing your investors to selling to your customers. But the trade off is gaining control over your company’s direction. You steer it where you want it to go. There will be problems, naturally, but you can learn to anticipate them and work out feasible solutions. You would no longer be at the mercy of superiors who call the shots. Best of all, you stand to reap the maximum reward for your efforts.

Choosing to support your boss

However, the fear of “sailing on your own” is not unwarranted. Approximately half of all new businesses are expected to close shop within five years from their establishment. And among those remaining, only a minority will turn out to be truly successful, creating a brand that caters to the needs of their target market.

Preferring to be pragmatic because you cannot afford (either financially or mentally) to be ambiguous, especially with regards to you and your family’s future, is a viable option. The best course of action at this point is to “be a light, not a critic”. Shine in the workplace. Put your heart and soul behind your endeavors. When financial times become more positive you will likely reap the benefits.

For boating enthusiasts; marinas, boatyards and boat dealerships can be thought of as a respite from the gloomy financial news or an unfulfilling career. Boaters “boat” to get away from the rat race. Your attitude and demeanor can make or break that experience for your customer. Regardless if you choose to pick your ball from the “risky” fist or the “ambiguous” fist, resilience is the virtue needed to thrive in this economy.

Marine Industry Blogs

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Are you running into “information overload”? Yeah me too… When I first set-up Google Reader (using www.igoogle.com), I decided to sign-up for every blog that seemed interesting. This lasted for about a week as I found my reader overloaded with blogs that had some initial appeal but didn’t remain relevant enough for me to continue.

I try to limit the number of blogs I receive as much as possible. For what it’s worth, these are the ones that appeal to me. When you go to these sites, look for a link called “Subscribe” or the RSS icon . This indicates that blog posts will be sent to your favorite reader automatically:

Business and Web Trends

Marine Industry

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