MetroGroup

NEWS AND EVENTS

Marcus L. Arky was featured in EXPO Magazine's April 2006

Marcus L. Arky was featured in EXPO Magazine's April 2006 publication in which he discusses exhibitor contracts.

Complete Podcast: http://www.expopodcast.com/09.htm
MP3 of the M. Arky interview only: http://www.expopodcast.com/09.htm

The Complete Expo Article is availble below or at http://www.expoweb.com/Profile/2006April5minMarcusArky.htm:

5-minute interview: Marcus Arky,
General Counsel, The MetroGroup

Marcus Marcus Arky, is General Counsel for The MetroGroup, a full-service accounts receivable and debt recovery firm that specializes in media and the trade show industry. The firm has worked with show organizers — such as the Consumer Electronics Show and Reed Exhibitions — to collect on unpaid bills from exhibitors. He shares some of his advice with EXPO on creating exhibitor contracts and how to maximize cash flow. Note: Always consult your attorney before making changes to your contracts.

EXPO: What’s the most commonly overlooked item in an exhibitor contract from a credit and collections standpoint?
Arky: The most common problem is that plans aren’t made if there’s a problem. The language in the contract should specify damages in the event of a breach or exhibitor cancellation. Contracts should clearly define what will happen should a breach occur.

Another item to include is when the contract becomes binding. Exhibitors sometimes think that the contract doesn’t begin until they’ve made the first payment. Specify that the contract is binding with or without payment to make it clear and avoid hard feelings later.

Another common item to include involves associations. Often associations will offer discounts to members, but they don’t indicate by when one must be a member or for how long.

EXPO: Is there anything that should not be in a contract? Or anything show organizers sometimes include that causes trouble?
Arky: Yes, sometimes contracts ask for too much information, or ask for too many things that can sometimes result in creating loopholes that could make a contract nonbinding.

For example, sometimes contracts will ask for purchase order numbers. You don’t need the purchase order number for the contract and, by including it (depending on the language), the exhibitor could argue that the contract wasn’t binding because the number wasn’t provided. You don’t want to get bogged down with little things like that.

EXPO: Your firm focuses a lot on collections and accounts receivable. Why should shows pay more attention to these aspects of their business?
Arky: Ignoring these areas can leave cash on the table. Often show organizers don’t adequately synchronize all the departments within the organization, especially the sales, marketing and accounting departments. We’ve expanded our consulting business and are implementing a new methodology that we call Omega Alpha — we start with the needs of accounts receivable and work backward to the beginning and the sales process to evaluate areas where better harmony could create better cash flow. You want to look at all of your processes — from when things are mailed to what kinds of early-bird specials are offered to how the sales process works to make sure everyone is on the same page.

5-minute interview: Marcus Arky, General Counsel, The MetroGroup

5-minute interview: Marcus Arky,
General Counsel, The MetroGroup