Similar to other marketing types, when you exhibit at a trade show you also want to attain optimum return on investment. Using the right planning and budgeting techniques, a trade show exhibit may generate excellent ROI for your company. On the other hand, setting the wrong plans or budget may turn into a costly lesson on the importance of preparation.
Here, we take a look at how to prepare a trade show budget to give your business a positive ROI.
Who’s setting the Budget?
If your business is fairly small, you might have full control over how much you spend on the trade show. However, if you work for a large company, you may have been provided with a limited budget for the exhibit.
Usually, the first case where you have financial freedom over your expenses is harder to plan for than the second. It’s essential to set a limit for yourself even if you have control over the spending to prevent excessive costs
Never Underestimate the Cost of Your Trade Show Exhibit
If it’s your first time marketing your business at a trade show, it’s vital to account for all the potential expenses. You need to consider the cost of trade show displays, transport, promotions, accommodation, and renting a stand space. Also factor in the expenses for food & drinks, and on-site labor.
What Do Other Trade Show Exhibitors Spend Money on?
1. The Floor Space And Display Stand Design
Average trade show exhibitors spend about 40% of their budget on the exhibit alone. That includes the price of designing an exhibit, and renting stand space.
It’s a good idea to set about 40% of your overall budget to the design of the booth and floor space. Doing a calculation of those costs is simple if you know the trade show you’ll be attending and its pricing details.
After you’ve made plans to attend the trade show, book a spot as soon as possible. Most trade shows offer lucrative discounts to exhibitors who book spaces early. That’s very helpful for keeping expenses to a minimum.
The amount of floor space you require ultimately depends on the show you’ll be showcasing at and the objectives of your business.
2. Transport, Accommodation and Entertainment
Another major expense is transport to and from the event, booking accommodation and offering entertainment for prospective clients and staff.
The average trade show exhibitor spends around 21% of their budget on transport, accommodation and entertainment. Fortunately, like the price of the floor space, the money you’ll spend on travel and accommodation is also flexible.
Booking hotel rooms and flights early can save you a lot of money too. Try to make a booking as soon as the trade show is announced. That’s especially essential if you are exhibiting in a city that is popular with exhibition shows and conferences. Cities that are hubs for such events can become very pricey when a major trade convention is in town.
3. Shipping of Materials and Trade Displays
From digital displays to the stands, you’ll have to account for the price of shipping promotional products to the event’s location. Many businesses spend around 9% of their total budget on shipping. However, if your exhibit is larger or more intricate, you might have to allocate a bigger budget for shipping. Due to such costs, many exhibitors opt to use a trade display stand hire service.
Additionally, you’ll need to budget for trade show services, promotional materials, giveaways and opportunity cost. For more information on trade show displays, get in touch with ExpoMarketing today.