We have just completed another CFA Summer Convention. Those who attended generally agreed that the speakers and educational opportunities were among the best we have ever assembled, but we are at a crossroad. For the first year ever, we lost money on the event. Contractors attended at about the same pace as the prior year but other revenue was off over 80%. Our survey (on the next page) indicates that this event that combines networking opportunities with a little time off during a hectic summer, is the reason many members say they attend the CFA Convention.

Therein lies the quandary. Do we significantly alter the event, perhaps making it an education-only affair? Do we change the time, perhaps shifting it to the winter? Do we move to hotels without activities for the family, turning it into a business only event? Do we cancel it altogether? Is this just a response to the economy? We are in a transition to a younger generation of business owners; do they have different aspirations and goals from those of their parents? We would like your input, but before offering it, here is a little information about how these events are planned.

They are planned three years in advance to secure hotel space at the locations and during the time slot that our members have indicated works best for their schedules. From 1992 until three years ago, our events grew by approximately 10% each year. We reserve sufficient rooms to make certain everyone can stay on-site and to get the best possible rate (as best as can be secured three years in advance). We are committed to use these rooms or we pay for them – that’s part of the deal – and we have paid dearly the past three years. We began reducing room commitments three years ago but obviously not nearly enough. At Mount Hood six years ago, we used over 850 hotel room nights. This year, we used 169. Our attrition charges over the past three years have amounted to over $75,000.

We are committed for the next three years. We are working to reduce the room commitments but are at the mercy of the hotels. Canceling an event obligates us to pay on a sliding scale beginning at around 50% of the hotels expected room, food, and beverage revenue, which can be in excess of $100,000. Short of a court action, we are committed. The question is, what do we do in 2013 and beyond?

If we delay decisions and plan only one year ahead we might get a better rate (particularly in this economic climate) but the preferred locations and dates will likely not be available. If we go to education-only events, the prices may increase, depending on the type of presenters used. Standard suburban hotels can save attendees money but many do not have adequate meeting facilities and they can be far from family activities.

We conducted a survey back in 2006 following the Wisconsin Dells event (before the economy turned bad) with 45 (69% contractors/31% suppliers) respondents. Base room rates were $189/night (plus resort fee & taxes).

Survey highlights are:

88.9 % would attend another event;

82.4% said the amount of education (2 half days) was just right;

44% preferred keeping the education on ! urs-Fri (it was moved to Fri-Sat);

80% felt outdoor exhibits improved the event;

58% responded room rates were acceptable (11% responded too high);

60% responded registration rates were acceptable (13% too high);

67% of respondents plan their summer vacation around the event;

Responses to where we should hold future events were all over the map (literally) with nearly 50% asking for water; 38% preferring mountains; and 44% preferring the Midwest. (Note: We are still looking for a mountain location on a lake in the Midwest).

Many attendees felt that the evening events and meals were too expensive for what they received, in particular the events held on-site at hotels. Sta$ agrees – we try to run them as a break even event and often lose money. Hotel meals, with the possible exception of buffets, are very expensive and gratuities, taxes, etc. are approaching 30% or more on top of the cost of the meal.

Exhibitors, as a rule, did not feel that the cost justified the leads that were generated but many indicted they attended to reinforce existing relationships instead of generate new leads.

Is it simply the economy? Possibly, but we want to make certain we do the best job possible responding to your needs. This is your association and we work for you. Please contact Jim Baty or myself and let us know what you think.