The Hanwha Techwin Million Dollar ISC West Booth

By John Honovich, Published Apr 05, 2019, 09:16am EDT

One million dollars for 2 and 3/4 days.

That is what Hanwha will pay for its ISC West 2019 exhibition.

The Million Dollar ISC West Booth

While the event is free for most attendees, the manufacturers pay heavily to fund it. Why is it so expensive? Is it worth it? Who makes most from this event?

Inside this post, we examine these questions, looking at Hanwha and other large exhibitors including Axis, Dahua, and Hikvision.

Getting ** * *******

*** **** ******* ** booth ***** (*** *** sizeable *****) ***:

  • *** ***** ***** / bare ******** ****** - To *** ******* *** has ** **** **** from ****. **** *** small ****** **** ~$**,*** and *** ****** ****** run ** *** ******** of ********* ** *******.
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****** ******** ** ******* on **** ****** *** sources ***** ** *** company *** ***** ****** exhibitors ********* **** **** structure.

Hanwha ***** *****

**** ******** *** **** floor **** ******** *** in **, ******'* ***** price *** ****** ** ~$420,000:

image

*** '******', ** *******, are ********* ************ ** electrical *** ********* ******** which *** **** * difference *** ***** ****** but ** *** ****** / **** / ********* level *** **********.

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Banners - **** *******

******* ******* ** *** scale ** ******* ** the *******. *** *** banners ***** *** **** floor **** **** ** thousands. **** ********** *** graphics **** ****** *** the ********* ** ****** attendees **** *** **** one's ***** ***** $**,***+:

Cost *** ***** ******* - $*** ** $***

*** ****** ******, ** estimate *** ********* **** per ******* ** ***** booth ** ** $*** to $***. **** ** based ** ********* ********** they ******* *,*** ** 10,000 ********* **** *** course ** *** **** compared ** *** $***,***+ spent ** *** ******.

*** **** ******* **,***+ visitors *** ** ***** 10,000 ** **** *** exhibitors *** ********** **** Hanwha ** ********* ** generally ********** ** ******* with ******, *** ***********. That ****** ~**,*** ********* buyers ** ***** *** of ***** ~*,*** ** so ******.

Axis, *********, Dahua, ********* ***** *****

***** ***** ***** ************ manufacturers *** ******** $***,*** or ****. *** *******, these *** *** ***** / ****** *** * number ** ********* *************:

*** **** ***** ** almost ** *** ** Hanwha's *****, ******* **** (and *********) ************* ****** their ***** ***** ** partners ***** ******** ******* their *****. **** *****, given *** ***** **** of *** ****** *** the ******** ***** ********, those *** ***** ******* a **** ******* ** more.

Worth ** *** ******?

*****.

*** *** **** ******* on * ******* - China *********** *** ***** building.

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****** *** * ******** problem. **** **** ** be *******, *** ** the **** ****** ***** and ******** ****** ** the *****. **** *********** ******* *** ******** to ******, **** ******** ***** issues, **** **** ******** they **** ******* ** just ********* *** ******* who ****** ***, ******* Hanwha ***** * **** large ************. ******** ******* on ********* *** **** in *** **** **** to **** *** ****** name **** ******** *** comfortable ** ******.

*** **** *** ** that ** ** **** / ************ ** ****** a ******* ******* ***** over * *** ****. For ****** *** *****, the ****** *** **** often **** *** ******* customers ** ******** $*** to $*** ** ***** up *** ** ******* with ******** ********* ** not ******** **********, ********** since **** **** **** them ** ****** * few ***** *** *** a *****-*** *****. *** given ***** *****, ** directly ****** *** *******, Hanwha ***** **** ** get **** ******** ** dollar ** ******** **** they ***** *** **** had ******* *** *****. That **, *********, **** to ****.

Who ** ****** *****- ****, ***, ******

*** ************* **** *** definitely ****** *********** ******* on **** *** **** Exhibitions - *** ********* of *** **** [**** no ****** *********], *** the '******* *******' ** the *****, *** *** unions *** ***** ********. The **** ************ **** shows *** ***** ** the ***** ** ******* being **** *****, ** ***** ***-****** financial ******* ***** **** disclose$*+ ******* ** *********** fees, **** **** **% of ***** ****** ******* from *** *** **** of *** ****:

Understanding *** **** **** ********

** ***** ***** ** a ********** **** **** events *** '****' *** they *** ***. ***** they *** '****' ** experience ***** *** **** generally **** *** ****** for *********, *** ************* exhibiting *** ******** *******. The ***** *** ** worth ** *** **** you ***** ***** *** much **** ********* ** paying *** *** ****** of ****** ********, ** puts ** **** ****** perspective.

Comments (34)

Undisclosed #1

04/05/19 01:48pm

The organizations that are definitely making significant profits on this are Reed Exhibitions - the organizer of the show, SIA the 'premier sponsor' of the event, and the unions and booth builders. 

I think the Sands does pretty well also. I wonder how much of that $400,000 space fee ultimately goes to the Sands? I would wager a big part of it. Then there is also the food/beverage that you pay to Sands for any meeting room stuff or in-booth beverages.

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John Honovich

IPVM | In reply to Undisclosed #1 | 04/05/19 01:55pm

Good point, agreed. It would be interesting to know what the mark up is from what the Sands charges Reed and what Reed charges exhibitors. I think it is quite high. For example, if Reed is paying SIA $5 million to 'sponsor' what is Reed taking home in profits?

As one point of comparison, multiple exhibitors over the past few years have mentioned that CES charges lower pricing for the same Sands booths that ISC West offers despite CES being far bigger.

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Undisclosed #1

In reply to John Honovich | 04/05/19 01:58pm

As one point of comparison, multiple exhibitors over the past few years have mentioned that CES charges lower pricing for the same Sands booths that ISC West offers despite CES being far bigger.

I'm sure there is some "economy of scale" factor there. CES almost literally takes over Vegas for a week. ISC West brings less people in total in terms of attendees+exhibitors than CES brings just for setup/move-in (seriously).

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John Honovich

IPVM | In reply to Undisclosed #1 | 04/05/19 02:03pm

Shows normally price to value, not cost. It's totally reasonable that CES might have more economies of scale but that would not explain lower pricing, unless CES felt they had less bargaining power.

One thing certainly in ISC West's favor is that the ongoing decline of ASIS, as a conference, makes ISC West the predominant choice to get in front of the largest mass of industry people.

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Undisclosed #2

IPVMU Certified | In reply to John Honovich | 04/05/19 03:38pm

Shows normally price to value, not cost.

is the Sands price to Reed based on value or cost?

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John Honovich

IPVM | In reply to Undisclosed #2 | 04/05/19 03:40pm

ISC West has fewer competitors than Sands has, agree/disagree? There are many places to hold an exhibition but literally just a few for those interesting in live marketing to physical security buyers.

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Undisclosed #6

In reply to Undisclosed #1 | 04/05/19 10:37pm

the Sands is an actual facility (with services available to complement same) - and as such they charge facility rental fees to use their joint.

Reed is the promoter of 1 show of hundreds(?) that The Sands hosts each and every year.

to the point of CES booth space being cheaper for those that want booths - in comparison to ISC West booth space - I would imagine that The Sands charges a (flat) fee for using their facilities, and that any booth cost disparity is simply because ISC West can charge attendees of their show whatever their market will bear.  Just as CES is free to do with their own show. 

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Undisclosed #2

IPVMU Certified | In reply to Undisclosed #6 | 04/05/19 10:50pm

...I would imagine that The Sands charges a (flat) fee for using their facilities, and that any booth cost disparity is simply because ISC West can charge attendees of their show whatever their market will bear.

perhaps, but when the Sands sees that Reed is making an exorbitant markup (if that is indeed the case), the Sands is not incented to give Reed their absolute best price.  Even if the “standard” price were the same between CES and ISC, all sorts of discounts and incentives can be given to get the volume of the less profitable shows.

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Undisclosed #6

In reply to Undisclosed #2 | 04/06/19 01:22am

venues of all kinds generally have a published rate card that dictates finite costs for facility rental.  this is how those that seek these types of venues decide which venue to use.

meaning, if you were anyone who wishes to rent the facilities of venue X, you would simply contact venue X and ask them for their rate card.

I don't think that The Sands gives 2 craps who it is that rents out their joint - as long as there are no public repercussions to them for doing so (i.e. if white-supremacist U.S. nationalists wanted to rent their place, I imagine that they would refuse).

My entire point is that The Sands just rents their joint to Reed for 3 days out of the year.  They are not looking to squeeze Reed for their cut - it is most assuredly written into their original contract.

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Ty Mullen

COR Security, Inc.
In reply to Undisclosed #2 | 04/06/19 03:44pm

I would guess that whatever the rates are the structure is a base rental plus percentage of profit or gross. You would see the same structure in different retail environments.

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Undisclosed End User #3

04/05/19 04:28pm

At a networking event at GSX 2018 I met a guy who quit his job to start a company that designs and builds conference show booths.  He had designed several of the booths at GSX.   

The amount of engineering, planning and actual work that goes into these booths is pretty fascinating. Something I (as an attendee) had never really clued into.  Made me appreciate them that much more.  Cool article.   

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John Honovich

IPVM | In reply to Undisclosed End User #3 | 04/05/19 05:14pm

The amount of engineering, planning and actual work that goes into these booths is pretty fascinating. Something I (as an attendee) had never really clued into.

Same. I was surprised!

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Undisclosed #2

IPVMU Certified | In reply to John Honovich | 04/05/19 05:44pm

And what does poster child IDIS have planned this year?

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John Honovich

IPVM | In reply to Undisclosed #2 | 04/06/19 12:58am

IDIS is still spending heavily on a big booth, 2019 position:

The IDIS booth is ~$200,000 for the concrete, probably around 1/2 million all in.

Factoring in how much lower IDIS revenue in the Americas is vs Hanwha, that's a drastically more expensive endeavor than Hanwha.

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Ty Mullen

COR Security, Inc.
In reply to John Honovich | 04/06/19 03:47pm

It would be fun to hear the sales pitch from these designers. 

"This type of setup works well but if you really want to impress you need to go with this element."

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Brian Karas

In reply to Undisclosed End User #3 | 04/05/19 05:37pm

Before we sold VideoIQ to Avigilon we looked into buying our own booth. A setup that had some flexibility to scale to a 20x20, 20x30 or 20x40 booth size was going to be ~$90,000, IIRC. There was a lot that went into the design in terms of meeting various safety specifications, being durable/rugged enough to be shipped around, setup and dismantled repetitively and so on. 

I doubt it was more than $7,500 in materials that would have gone into it.

Once you buy your booth, you are still not done with booth expenses. You will frequently pay to have graphics (re)printed, either to update messaging or just to refresh panels that get damaged from normal wear and tear. Also, when you're not using it, you get to pay the exhibition company to store it for you :)

Spending $25,000-$35,000 per show to rent something similar turns out to not be a bad deal when you look at the TCO factor.

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John Honovich

IPVM | In reply to Brian Karas | 04/05/19 05:47pm

A setup that had some flexibility to scale to a 20x20, 20x30 or 20x40 booth size was going to be ~$90,000, IIRC.

Very interesting!

To give a sense of scale to readers, Hanwha has a 55 x 100 or roughly 7x as large as a 20 x 40. Take $90,000 x 7 and you have a really big number.

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Undisclosed Manufacturer #7

In reply to Brian Karas | 04/06/19 01:10pm

We have bought 3 used booths over the years and had our local casework company modify them.  We paid $10k for our current 20x30 booth, which listed for $150k new.  We only use about 60% of the original booth.  Also, never let the exhibit house manage/build/brand/store/ship your booth. http://www.exhibittrader.com/Classifieds/IncFindUsedForSale.asp

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John Honovich

IPVM | In reply to Undisclosed Manufacturer #7 | 04/06/19 02:43pm

Very interesting.Thanks for sharing that link.

Here is an example of a booth for sale for others to see:

Question:

We have bought 3 used booths over the years and had our local casework company modify them.

How much does it cost to modify the used booth?

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Undisclosed Manufacturer #7

In reply to John Honovich | 04/06/19 03:06pm

We have about $10,000 invested in re-branding all surfaces, building interactive tables, and annual repairs.

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Ty Mullen

COR Security, Inc.
In reply to Brian Karas | 04/06/19 03:50pm

Shipping cost alone (because there is also a charge for receiving the shipment at the venue). I know a few small manufactures that will just purchase a couple TVs locally and give them away to avoid the hassle of shipping. 

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Undisclosed Manufacturer #4

04/05/19 07:54pm

While we analyze Hanwha's and others cost to be at ISC West for 2.5 days, let's not forget the opportunity cost lost for not being there as it's a careful balance.  Yes, you need a booth large enough to attract your customer both current and potential. But, I seriously doubt it would take a booth as large as above to get the flow of traffic you need to still get a measurable ROI. 

More importantly, it doesn't take ~100 people to man a booth yet companies will send that many to do so (check out the LinkedIn and Twitter pages after Day #1).  The first day of the show is inevitably busy, but wait until the afternoon of Day #2 and especially Day #3 to see how empty the booths are with the exception of company employees. 

Additionally, the estimate above of $1,000 for 3 nights, meals, drinks, and internal entertainment as individuals party in Vegas on the company dime can easily exceed $1,000 per head over 3 days.  Now, if those individuals are entertaining clients which I hope they are, the numbers just sky rocket from there.  Yes, that is the cost of doing business and I have no issues with that whatsoever.  However, the restaurants & bars in and around the convention center are some of the more expensive ones in the city.

Again, one could argue this is the cost of doing business and an effective means to showcase new products.  But, I certainly challenge the booth size and amount of people needed to carry forth that message.

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Undisclosed #2

IPVMU Certified | In reply to Undisclosed Manufacturer #4 | 04/05/19 10:33pm

More importantly, it doesn't take ~100 people to man a booth yet companies will send that many to do so...

for some geographically disparate operations, shows can double as company-wide management get-togethers as well.  

the tendency to “rally ‘round the booth” can reinvigorate sales, and allow the team to meet and work together, under a shared mission.

whether that’s worth it depends on the particulars of the company.

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Undisclosed Manufacturer #5

04/05/19 10:09pm

Another interesting cost is lost revenue opportunities when 80% of your staff is busy for 5 days. 

I believe anyone who exhibits at ISC West will have an ROI, but ONLY if their post-show follow up is done well. You can have an incredibly elaborate $5M CES-level booth and a lack of follow up turns it into a money pit. Having a powerful lead prospecting system is key.

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Ty Mullen

COR Security, Inc.
In reply to Undisclosed Manufacturer #5 | 04/06/19 04:06pm

Which is why the manufacture's absolutely hate that I place a white sticker over my bar code (which at first glance looks like it was just printed without a bar code.

In years past I didn't and I would have rogue individuals jumping out of no where to scan the badge even when I was walking down an aisle; not even in a booth. 

I just have to many emails. Even if they scanned me I would most likely opt out, if available, when the emails started coming through. 

But if I'm really interested in a new product or company I make it a point of getting the contact information of the local rep. At least for me this ends in a stronger chance of a transaction.

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Marco Sanchez

In reply to Ty Mullen | 04/06/19 05:54pm

I'm pretty sure it's not hard to put a wrong email in the registration.

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Sean Nelson

Nelly's Security
04/06/19 03:36am

Another pro case for hanwha is that its all a tax write off

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John Honovich

IPVM | In reply to Sean Nelson | 04/06/19 12:47pm

Lol, related, what is the tax treatment of manufacturer parties? Has the 2017 Tax Cut and Jobs Act have any impact on that?

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Undisclosed #2

IPVMU Certified | In reply to Sean Nelson | 04/06/19 07:20pm

Another pro case for hanwha is that its all a tax write off

and we know how much hanwha could use a tax write off ;)

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Undisclosed Manufacturer #7

04/06/19 01:07pm

This show is an industry tax, if you don't exhibit then you don't exist.

NOTICE: This comment has been moved to its own discussion: ISC West Is An Industry Tax, If You Don't Exhibit Then You Don't Exist.

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Undisclosed Integrator #8

04/06/19 04:38pm

Go BIG or Go HOME.

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Mark Palka

IPVMU Certified | 04/08/19 03:27pm

I have gone to ISC for the past 14 times in the last 20 years and what i find is that it is just too big - last year for the first time I used the app and it was very helpful but the actual exhibitors that wanted to see on the schedule i produced were a long ways from each other so i did a lot of walking which was good for exercise but time wise could have been condensed. 

I decided not to go this because i can browse the exhibitors on line and if some one looks compelling i can then get more information.

i would like to know how others feel about this and if they think ISC is worth it.  

NOTICE: This comment has been moved to its own discussion: I Decided Not To Go To ISC West This Year Because I Can Browse The Exhibitors On Line And If Some One Looks Compelling I Can Then Get More Information

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Undisclosed Integrator #9

04/15/19 03:53am

I found the same thing this year my first time there. No organization to the show, I understand placement as the show is sold but how about video in one corner, software in another corner etc. It's been going on long enough someone has an idea as to what categories to put near each other that are relevant. I finally found the table with the maps on it as I was leaving on Friday and even they were lacking organization. Too many people and too many exhibits to actually get usable information onsite. 

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Michael Miller

In reply to Undisclosed Integrator #9 | 04/15/19 11:24am

Did you try downloading the ISC app for you phone?

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