EXSA NEWS

Design fees within the South African exhibition industry.

Historically, the exhibition industry charged for design work. Back then it was paper-based and thus required the skills of draftsmen, architects and qualified and respected professionals. By Lee-Ann Alder, EXSA association manager.

By Lee-Ann Alder, EXSA association manager.

This changed in the 1980s when prominent role players began offering design for free in a bid to entice clients to utilise their services over competitors. The digital age further amplified this approach as computers allowed for much faster design as well as lowering barriers of entry into the design field.

While this approach at first gave companies a competitive advantage it has caused long term detrimental effects to the point that qualified interior designers and architects working in the events industry are no longer valued as they should be.

In addition, it has led to design being a cost centre where the risk is carried by the exhibition company alone.

Many of us have long term relationships with a client base where design fees are not an issue as they are incorporated into the overall project cost. In addition, these clients would generally have no issue covering the design cost in the scenario that a project doesn’t proceed.

Where design becomes problematic is where tenders are involved, both government and corporate. Often, these require three quotes, which in itself is not problematic. The problem is that all the risk lies with the exhibition company/designer.

A company that only creates design work (no production) will not design for free as that forms their core function. Producing design work for free would lead to the closure of the business. It therefore makes no sense that production houses that offer design do it for free. It’s nonsensical to absorb all the risk in a relationship with potential clients.

Tenders have led to many problems

1. Many briefs received are inadequate and expose a lack of understanding of the exhibition stands and the complexities involved.

2. Poor research when it comes to matching suitable exhibition companies with certain tenders. Exhibition companies all differ in terms of style of design and work.

3. Tendering entities have often already chosen who they will work with but need three quotes to fulfil company/ government regulations.

4. Designs produced are often sent to competing companies to try and drive the price down. This is IP theft.

5. The quality of work produced for exhibitions has gone downhill dramatically, especially postpandemic. Competitors are undercutting costs in an environment where there is a major skills deficit.

The last point above is particularly concerning. It’s noticeable at recent events how quality has plummeted, which reflects very badly on our local industry. There have been many instances of non-delivery recently.

The drive towards Net Zero Carbon Events by the worldwide industry is also going to impact our industry immensely and will most certainly have an effect on how designs are produced.

In a recent survey conducted by EXSA, an overwhelming number of respondents now refuse to do work at risk and find that the design system is abused by clients.

It’s far easier for smaller companies to adopt an approach of charging for all design, whereas larger companies have such high overheads that they are forced to churn out as much design as possible to bring in enough work. It’s a ‘throw mud at the problem’ approach that hopes that enough of it sticks.

So, what is the solution?

EXSA is drafting a series of guidelines and design fees cost tables that we aim to present to the industry at an EXSA connects session. This promises to be a very ‘robust’ discussion.

Once published, this will form a set of assets and tools that can be used by members and the industry to educate our clients and markets, the aim being to generate a groundswell of support so that more and more companies adopt it as a principle.

It’s not a quick fix but will form part of the drive towards reenergising exhibitions in South Africa. This approach should lead to an improvement in the industry in terms of quality and a suppliers base.

We are not a regulated industry like architecture, where fees are gazetted. However, long term this can be the goal to ensure our industry becomes more professional and appreciated for its quality productions.

EXSA hosted an EXSA connects session in July 2022. We encouraged all who are involved in exhibition design to offer their views. This session presented survey findings as well as presented some possible solutions that will form a valuable part of the roadmap.