| What You Should Know about Exhibit Budgeting | | | | saving labor costs. Additionally, the second might be |
| - How to differentiate between normal marketing | | | | crated better, yielding a 20% longer life or at least a |
| expenses and exhibit marketing expenses | | | | higher resale value. You’ll want to consider all |
| - The exhibit is the largest initial expense, but your | | | | these expenses before making a final decision. Your |
| ongoing exhibit marketing will easily surpass that initial | | | | exhibit consultant can assist you with calculating your |
| cost | | | | estimated expenses for each show. |
| - Create a budget and maintain an accurate Return | | | | |
| on Investment (ROI) on your exhibit marketing | | | | Calculating Your Budget |
| - Include the Exhibit Costs, online expenses, and | | | | Consider the following when developing your budget |
| Show Services when developing your budget | | | | for Exhibit Costs, Onsite Expenses, and Show |
| An Accurate Exhibit Budget | | | | Services. Onsite Expenses and Show Services can |
| Companies should define a workable exhibit | | | | be calculated using the forms provide by the show |
| marketing budget, one that includes all related costs. | | | | management organizer. Those rates vary depending |
| However, the line between marketing expenses and | | | | on the show. This list does not include travel, meals, |
| exhibit marketing expenses can be somewhat fuzzy. | | | | lodging, or promotional incentive expenses, nor does |
| You will want to create a well-defined budget that | | | | it include normal payroll expenses. |
| separates them. | | | | Exhibit Costs |
| The exhibit is typically the largest initial expense. | | | | - Exhibit Price |
| However, over time, the cost of using the exhibit will | | | | - Total Number of Uses |
| easily surpass the initial cost of the exhibit, often | | | | - Weight/Packagin |
| significantly. When constructing a budget, evaluate | | | | Onsite Expenses |
| your ability to maintain the expense year after year. | | | | - Booth Space |
| Weigh the repercussions of scaling back. In some | | | | - Lead Machine Rental |
| industries, scaling back can be more damaging than | | | | - Furniture and Plants |
| never exhibiting in the first place. | | | | - A/V Equipment |
| Creating an Exhibit Budget | | | | - Flooring |
| Creating a budget allows you to figure an accurate | | | | Show Services |
| ROI. You should account for pre- and post-show | | | | - Drayage (moving your exhibit from the dock to |
| marketing, travel costs, lodging, and entertainment. | | | | your booth space) |
| You’ll need to factor in freight, drayage, show | | | | - Electricity/Electrician |
| labor, carpeting, and electricity expenses. These can | | | | - Internet/Telephone |
| be significant expenses. Most I&D companies will | | | | - Decorator |
| estimate the labor time from a faxed set-up drawing. | | | | - Labor for I&D (installation and dismantling) |
| Most freight companies can estimate the shipping | | | | - Booth Cleaning |
| charges based on dimensions and weight provided by | | | | - Booth Security |
| the exhibit seller. You should also factor in minor | | | | Creating a well-defined budget and comparing it |
| repairs due to freight damage or repeated set-up. | | | | against actual expenses is the best method to track |
| Generally, common sense will determine if the exhibit | | | | and manage your total investment in a particular |
| packing is sufficiently for repetitive use, the vibration | | | | show. If you sell products in a retail show, then the |
| of the road, and the pounding of the forklift during | | | | revenue is easy to tally up and compare to the |
| freight handling. | | | | expenses for the ROI. If your show is one where |
| Don’t forget to factor in the usable life of your | | | | prospecting, branding, and market positioning are the |
| exhibit and assign a cost to each show. On average, | | | | norm, then the ROI is more difficult to measure. |
| an exhibit is effective for three years. Any longer | | | | Other benefits are difficult to measure but quite |
| and the exhibit may be dated or worn. Any earlier | | | | valuable just the same. These intangible benefits may |
| and the marketing value is not realized. | | | | be direct or indirect, and exhibit marketers look for |
| Here is an example to consider: a buyer who | | | | subtle hints of these returns and weigh them against |
| participates in six shows per year is considering two | | | | the opportunity cost of not exhibiting. |
| 20 x 20 island designs that cost the same. The first | | | | For more information about trade show or events |
| exhibit might weight 50% less than the second, | | | | marketing, give us a call or send us an email. We |
| saving freight and drayage costs; however, the | | | | welcome the opportunity to assist you with your |
| second might setup in half the time of the first, | | | | next event. |