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Big Conferences, Small Installers: A Growing Problem

Carter Lavin
April 11, 2012  |  9 Comments

PV America West in March had an array of great panels and a wide range of interesting exhibitors. There were module manufacturers, racking solutions providers, inverter manufacturers, a few financiers, and a handful of miscellaneous companies that service project developers. But installers were relatively absent. I called over one hundred local installers before the show and asked them if they were coming – most said no and cited limited time, personnel, and money.

PV America West was still a success, but it got me thinking about why we have conferences, and why we go (or don't go) to them.

Conferences play an important role in the industry. Ideally they provide opportunities for networking, expertise sharing, learning about product developments, and generate revenue for advocacy groups. Most importantly for attendees, they are great places to generate leads.

As the industry has grown, so have our conferences. Venues and booths are bigger while exhibitors and sponsors are more numerous. As the industry becomes more complicated, there are more panels and information sessions, and conferences last longer to fit it all in.

The information presented has become more valuable, the networking opportunities have improved, and the costs of running the event have increased, so prices have gone up. Because the value and costs have risen, conference organizers have been able to justifiably increase price for exhibitor space, sponsorships, and attendance. This is a healthy sign of our industry growing, except there is one problem: installers are increasingly priced out of attending.

Conferences exist to provide value to the participants; companies gain new information and greater market awareness and are able to generate leads through raising brand awareness, strengthening their brand and making new contacts.

Installers are at the end of the supply chain, the most numerous business type in the industry, and nearly every solar product or service must be sold to them directly or benefit them indirectly. If this trend of declining installer attendance continues, it will be detrimental to overall conference health.

Fewer installers mean fewer potential leads for others in the industry, which creates a less valuable conference experience. This creates a vicious cycle as fewer potential leads and higher prices cause more groups to forgo conference participation. As the number of solar companies has grown, this drop in the rate of participation has not caused any problems. However, eventually this will cause conferences to shrink or be canceled. While that means prices may drop and installers will get interested again, it comes at the expense of less vibrant conference scene. For conferences to grow, attendance of installers of all sizes also needs to grow.

Conferences must reduce cost barriers and market to installers directly to increase attendance. The most effective way conference organizers can reduce the cost barrier is by making it free for installers under a certain size to visit the exhibit hall. Organizers only need to have one “installer day” during their conference for this to work, as installers usually cannot spare much time. But incorporating this with the “general public” day at the tail end of the conference does not cut it. Installers are the main customers in most sectors of the industry, and should get some special attention from conference organizers.

Additionally, organizers should reach out to installers well in advance of the event. Like the rest of the industry, installers are extremely busy and have limited resources, but unlike most other companies, their customers are not at solar conferences. Because they will not make a sale at the conference, installers need to get in the mindset of going to conferences to learn about new products and services. Organizers need to help installers get rid of the idea that conferences are only for big companies, and emphasize the value of what they can learn at the event. Sell them the values of attending and get them to commit.

If installers commit to attend for free early, conference organizers will be better able to sell sponsorships and exhibit space to everyone else. Organizers can then tell potential sponsors and exhibitors about the number of installers who have signed up. The conference will then hold more installers, more leads, more sponsors, more exhibitors, and more revenue for the organizers.

As different conferences have different goals and targeted audiences, this model will not work for every conference. Solar Power International in Orlando is a globally focused conference that attracts large-scale project developers all over the world. 

It is the major leagues. Based on the panels and the relatively low cost for an exhibitor pass, it is clear that the organizers are making an effort to draw installers. I am sure a lot of smaller Floridian installers will attend since the costs are relatively low and its in their backyard. However it is a much tougher call to make if you are a small installer out New Jersey, and almost definitely out of the reach for smaller Californian installers. For a New Jersey installer the flight, hotel, and registration will cost them about $600, for a Californian it's about $800 (not to mention the time cost).

$600 might not sound like much, but for some installers that's a big portion of their marketing budget. Smaller installers mainly rely on word of mouth, visibility at local events and in local media, and online marketing to reach customers. These are both effective, have a high short term ROI, and have comparable costs to attending SPI. The return on investment of SPI attendance is not as easily traceable nor immediate enough to make it a wise use of a small installer budget. So while the SPI organizers have made a good effort to lower the cost barriers to installers, travel costs mean they are not able to lower them enough to get as many small installers as upstream players would like.

On the other end of the spectrum, smaller regional solar conferences are predominantly attended by local installers and have few, if any, manufacturers present. I saw this first hand when I helped organize the Maryland, Washington D.C., and Virginia Solar Energy Industries Association's annual conference in 2010. Generally manufacturers overlook these smaller conferences in spite of their lower costs because they represent smaller markets. The first manufacturer who seizes this opportunity to talk directly to customers without competition will be very pleased with the result.

This free attendance model and targeted installer marketing will work the best at larger regional conferences. If they are to thrive during this period of tightening belts and event fatigue, organizers will need to rethink their installer strategy and ensure they continue to provide value to all attendees. 

Image: piskota via Shutterstock

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

9 Comments

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Nigel Morris
Nigel Morris
April 19, 2012
Carter; you may be interested to know that this same problem has been occurring down under in Australia in recent times too. You story raises some important issues which I know many associations here have worked hard to overcome.

Some have "split but linked" conferences - with sessions specifically targeted at installers and others for the big end of town so installers can attend either or both. We also have two pretty big "free to attend" conferences now, which based on recent history have been highly attended. There are also increasing numbers of specialised, smaller regional events which makes access easier at the small end of town.

Ultimately, balance is the key when times are tight; I suspect a mix of small regional events and either zero entry cost or huge value (cost to enter) events are key. Ultimately, the event organisers have to work extra hard to deliver a must not be missed event if we want installers to invest.

Lastly, we must be wary of event companies who just want to put these things on for the sake of it and drown us in too many things to do.
Fred Golden
Fred Golden
April 18, 2012
I agree that it would be nice to have a conference in each state, but that would also put a burden on each sales team to spend money getting to each state, and paying $3,000 for the convention room 10X10' space and $150 more for a 15 amp receptacle.

How about Las Vegas in February, when it is nice and warm there, and cold everywhere else? And most airports have deals for trips to Las Vegas, they have plenty of hotel rooms, and great rates too!
James Nord
James Nord
April 18, 2012
These conference need to have these conferences in states where you contact the installers and have them pay a reasonable price up front to attend and they save on not traveling. You will have to move from state to state if the state have a good number of installers. I know how expensive this is because i had the same problem before i retired.
Carter Lavin
Carter Lavin
April 13, 2012
Chris,

Interesting point about Intersolar is the new SPI. It'll be interesting to see how the rise of Intersolar, PV America West and PV America East impact SPI's general attendance.

As for your question, I think contractors should be going to conferences to be sold to, not to generate leads themselves. In the current oversupplied market installers are very desirable. Manufacturers should be falling over each other to talk to them, and try to sell them on their products.
Chris Bunas
Chris Bunas
April 13, 2012
Intersolar (San Fran) is the new SPI. While it is not as massive and include all of the networking 'fun' as SPI, it is back to the basics of what made SPI worth going to... It is an opportunity to learn about new PV products and services available to contractors and installers and to network and negotiate for better product availability and pricing with suppliers. When SPI makes it back to a western-ish state we may attend again depending upon our resources at the time. I do not think we can afford to miss attending Intersolar. *** please describe how contractors can use attending a show as a 'lead generator', aside from buying an expensive exhibitor booth.***
Fred Golden
Fred Golden
April 12, 2012
Did you advertize in Home Power Magazine?
Elliott Gansner
Elliott Gansner
April 11, 2012
Carter,
Excellent article and you make a very good point. This phenomenon, of attendees at most conferences being primarily high in the value chain and thus not really the key demographic for the exhibitors at conferences, is something we have noted happening over the past two years. As you point out, the solar installation business is primarily local and attending national conferences has dubious value for most installers.

The lack of attendance at PV America and other conferences also seems to highlight the difficult period the solar industry is going through both in the US and abroad. As Paula Mints pointed out recently in another REW article, the solar industry is growing, but not in a particularly financially healthy way.

Elliott Gansner
www.pvXchange.com
Tor 'Solar Fred' Valenza
Tor 'Solar Fred' Valenza
April 11, 2012
From the small installer's perspective, I agree with you, Carter. Not sure about the economics of this from the organizer's perspective, but I'm sure they'd agree with your goals. Keep in mind that with expensive conferences such as SPI, SEPA/SEIA's goal isn't just to cover the cost of the conference, but also to raise funds for its operations and legislative efforts. That being said... if installers can't afford to go, then few benefit and fewer exhibitors may consider making that investment, and perhaps, as you suggest, it may be counter productive. Good discussion.
Thomas M
Thomas M
April 11, 2012
As mentioned, free is always a good idea to attract people. As I always say, if you took all the time, energy and money needed for a conference and used it to install systems for everyone to see, not just those involved in the RE business, then solar would catch on more quickly to the masses and the industry would grow.

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Carter Lavin

Carter Lavin

As The Solar Marketing Group's Business Development Manager Carter Lavin helps renewable energy companies analyze the market, articulate their message, and connect with their targeted audience to achieve their marketing/communications goals....
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