2013 Annual EDA Business Expo; and Consideration of Annual Outdoor Expo/Event (RV)

Annually, the Ramsey EDA hosts a Business Expo.  Preperations for the 2013 Ramsey Business Expo are begining.  Saturday, May 4, 2013 was selected as the proposed event date at the December EDA meeting.  Staff has secured the Fountains of Ramsey as a venue.

In addition to the traditional annual Business Expo, Staff was directed to contact local RV dealerships and gauge what level of interest existed to join the existing Busuiness Expo.

In summary, Staff has received input from RV dealerships (4 of 5) indicating they would prefer an event that would not require them to leave their place of business (generally speaking). 

The purpose of this case is to consider the traditional Ramsey Business Expo's future and a potentail new event (The Great Ramsey Outdoors Sale Extravaganza*)

*Name subject to change

Below is background information on the annual EDA Business Expo:

• The EDA allocates $3,500 to the Business Expo and historically spends about a little over $2,000.
• Revenues are typically about $1,500 (about -$500 net per year)
• Attendence to the event is about 300-400 people
• Venue has been the Fountains of Ramsey since 2010 (three years)
• Exhibitors have ranged from 45-50
• Over the past four years, it has become increasingly challenging to "fill the room" with true business exibitors.  The number of "craft/merchant" exhibitors has increased. See attached historical registration for reference.
• Staff has received a "fair to good" opinion and reaction to this event from the public and vendors.  No official survey was conducted in 2012.  In 2011, 1/3 of exhibitors responded to a survey--overall, reactions were "fair to good."

Below are changes that will (could) effect the 2013 EDA Business Expo:

• Parting ways with the Environmental Expo 
  Normally, the EDA and Environmental Expos are combined into one event.  Begining in 2013, the Environmental Expo will be joining the Happy Days Expo.  Therefore, the EDA business Expo will become a stand alone event.  Which has (or will likely have) the following effects:
  
  --Increased expenses (about $3,500); no longer splitting marketing/mailing with Environmental Expo
  --Reduced foot traffic; no longer getting cross over traffic from Environmental Expo
  --Conceivably, less interest from exhibitors to participate (less foot traffic)
  --Revenues will remain the same (about $1,500), which means this event is still financially viable

• Potentail RV/Great Outdoors Sale Extravaganza
  Such an effort would require a new budget and allocation of Staff resources. 
  
  --Estimated cost: $3,000-4,000 (regional group marketing, mailing, printing, etc.)
  --Estimated revenue: $750-$1,500; about $100-200 per participating business
  --NET $-2,000 to -$2,850 (estimated), falls within $3,500 budget
  --More detailed information regarding input from RV dealerships will be provided at the EDA meeting

Today, the City's existing financial and human resources are insufficent to conduct both events.  With the above information in mind, the EDA is faced with a decision between the traditional EDA business expo and the creation of a new event (Great Outdoors Sale Extravaganza of Ramsey).

The EDA has a few options to consider:

1. Continue Traditional Annual Expo

• Positive Considerations: 
  • From a financial perspective, this event is safe/not risky and should fall within budget.
  • "Brand Recognition."  Because the annual expo is a tradition, many people look forward to it, understand what it is, expect it, etc.  "Brand Recognition" is something that is hard to come by; and is hard to put a price on.
  • Overall, Staff is comfortable with this event and has established efficiencies due to repetition (not re-creating the wheel each year).
  • Meets previous EDA direction and expectations
  • Historically, a fairly well-received event
     
• Negative Considerations:
  • Attendance and feedback regarding the Business Expo has been good, but not great (like other EDA events)
  • A significant level of Staff time is required to carry out this event
  • With the departure of the Environmental Expo, it is likely participation and attendance will drop (mildly)
  • It is becoming challenging to fill all 50 available exhibitor stalls with non-craft/merchant businesses.
  • Duplication of events: Happy Days Business Expo

2. Take on a new Event: The Great Outdoors Sale Extravaganza of Ramsey -drop traditional expo

• Positive Considerations:
  • Meets previous EDA direction (and City Council) to recognize and support Ramsey's Outdoor Industries (e.g. RV expo).
  • It is estimated, less Staff resources would be required to carry out this event (in comparison to the Business Expo); which would free up resources to concentrate on other EDA priorities.
  • Natural Timing (Business Expo):
    With the departure of the Environmental Expo in 2013, consideration of Business Expo exhibitor trends over the past few years and recognizing Ramsey has two existing Business Expos--2013 may warrant consideration of a new event.
     
• Negative Considerations:
• • From a financial perspective, this event more risky than the traditional Business Expo.  Staff can only estimate costs and revenues.  There is a chance this event could go over budget.
  • No "Brand Recognition." This would be a new event, and it would probably take 2-3 years to see its full potential; and subsequently it's value (foot traffic, vendor participation, etc.).
  • Learning Curve.  Because this is a new event, Staff (and participants) would experience a learning curve.  Meaning, year one may yield unforseen challenges.
  • Overall Risk.  There are a number of unknowns with this event. Conceivably, this event could be a failure.
  • Negative reaction from traditional Business Expo attendees and exhibitors.
     

3. Alternative Direction

• Staff would standby for an alternative EDA direction (not provided above).

Direct Staff to move forward with:

A. Traditional Business Expo

B. Develop a new event; which would entail coordinating a regional marketing campaign and include outdoor industries located in Ramsey

C. Alternative direction