HOW TO DERIVE A BALL PARK ESTIMATE FOR YOUR TRADE SHOW BUDGET
Trade shows can be a very positive and lucrative experience for a lot of B2B companies. However, budgeting for your trade shows can be tricky because there are a number of hidden costs that make it difficult to figure out exactly what a show will cost. Here here are a few simple guidelines from Exhibitor Magazine to help you get a general idea of what various aspects of the trade show experience might cost.
1. SPACE-COST CALCULATION
If you are a new exhibitor — Multiply the cost of your exhibit space at a particular show by 3 for a ballpark total show estimate. For example, if your space cost $20,000 then your total-show budget should is $20,000 x 3 = $60,000
2. Cost-Per-square-FOOT CALCULATION
If you are an exhibitor with few shows under your belt, and if you are thinking on cutting down on shows or expanding on shows this is a good way to do it — analyze your past trade show expenditures to predict future exhibiting or not.
STEP 1
Determine the average cost per square foot your company spends on each trade show.
1. Add up the cost associated with exhibition by adding up the costs associated with the previous year's shows (including amortized exhibit costs where appropriate).
2. Divide the total by your booth's square footage.
3. The resulting number is the average cost per square foot.
STEP 2
Determine the cost per square foot for each show that you attended last year.
Use the above formula to calculate this amount. For example, if you have exhibited at 6 shows in 2016, your cost per square foot, per show, after using the above formula, $156, $86, $111, $99, $75 and $101
STEP 3
Determine the average cost per square foot for your exhibiting program.
Add up the above cost and divide by the number of trade shows. In this case it will be 6.
STEP 4
Determine the ball park budget for your next show.
Multiply the average cost per square foot by the square feet of the booth space you intent to purchase.
Determine the cost per square foot for each show that you attended last year.
Use the above formula to calculate this amount. For example, if you have exhibited at 6 shows in 2016, your cost per square foot, per show, after using the above formula, $156, $86, $111, $99, $75 and $101
STEP 3
Determine the average cost per square foot for your exhibiting program.
Add up the above cost and divide by the number of trade shows. In this case it will be 6.
STEP 4
Determine the ball park budget for your next show.
Multiply the average cost per square foot by the square feet of the booth space you intent to purchase.
3. Cost-Per-LEAD CALCULATION
If you are an exhibitor who is well aware of your average cost of lead OR you can go by the 2015 Exhibitor Magazine survey, this is your way to do it --
OPTION A
If you know how much you typically spend on each lead, multiply the average cost per lead by the number of attendees you expect to attract at the upcoming show based on the show's audience demographics.
EXAMPLE:
If you are planning to secure 500 leads from a certain show, and you typically spend about $160 per lead, then your total show budget for your next show should be $80,000.
$160 x 500 = $80,000
OPTION B
If you do not know how much you typically spend on each lead, use the averages provided by Exhibitor Magazine's 2015 Sales Lead Survey of $164.91.
EXAMPLE:
If you are planning to secure 500 leads from a certain show, your total show budget for your next show should be $82,455.
$164.91 x 500 = $82,455
OPTION A
If you know how much you typically spend on each lead, multiply the average cost per lead by the number of attendees you expect to attract at the upcoming show based on the show's audience demographics.
EXAMPLE:
If you are planning to secure 500 leads from a certain show, and you typically spend about $160 per lead, then your total show budget for your next show should be $80,000.
$160 x 500 = $80,000
OPTION B
If you do not know how much you typically spend on each lead, use the averages provided by Exhibitor Magazine's 2015 Sales Lead Survey of $164.91.
EXAMPLE:
If you are planning to secure 500 leads from a certain show, your total show budget for your next show should be $82,455.
$164.91 x 500 = $82,455
dO's and DON'Ts of BUDGETING
Booth Budgeting — Do: Know All the Costs Involved in Going To a Trade Show
Make a list of everything that will cost you money (and most likely have to be paid for pre-show).
According to the Center for Exhibition Industry Research (CEIR),
36% of your budget goes to the floor space. That’s a huge chunk and you must be aware of that before getting into all of the other necessities for a successful show.
17% goes to show services. Show services include the carpet and padding, electric, cleaning, rigging garbage pails etc.
With 47% left over, now, you have to account for
1. Exhibit Design and Build
2. Graphic Design and Production
3. Exhibit Promotion and Giveaways
4. Exhibit Technology: Lead Management, Internet, AV etc.
5. Exhibit Staffing - Hiring and Training
6. Exhibit Shipping and Drayage
7. Sponsorship Advertisement
8. Staff Travel, Food and Lodging
9. Surprising Additionals: Overtime material handling, installation and dismantle and accommodating last minute missed shipments
Make a list of everything that will cost you money (and most likely have to be paid for pre-show).
According to the Center for Exhibition Industry Research (CEIR),
36% of your budget goes to the floor space. That’s a huge chunk and you must be aware of that before getting into all of the other necessities for a successful show.
17% goes to show services. Show services include the carpet and padding, electric, cleaning, rigging garbage pails etc.
With 47% left over, now, you have to account for
1. Exhibit Design and Build
2. Graphic Design and Production
3. Exhibit Promotion and Giveaways
4. Exhibit Technology: Lead Management, Internet, AV etc.
5. Exhibit Staffing - Hiring and Training
6. Exhibit Shipping and Drayage
7. Sponsorship Advertisement
8. Staff Travel, Food and Lodging
9. Surprising Additionals: Overtime material handling, installation and dismantle and accommodating last minute missed shipments
Booth Budgeting — Don't: Cut Corners on Your Exhibit Design, Just Because, You Have Spent all the Money on Your Booth Space
Do a rental instead of purchase. Ask about lease to own programs. If it’s a rental, find out what the cost to rent would be over 2 or 3 years. Since you’ll own the graphics after year 1, you’ll pay less for years 2 and 3. A bigger booth with a useless exhibit means colossal failure for your company.
OR, Exhibit at fewer shows, which cuts your show booth space rental costs. Exhibiting at fewer shows also means lowering your exhibiting costs overall — no booth to ship and install, no show services, no promotions, and no booth staffers for travel and hotel.
OR, Even better, eliminate the wrong shows for your company. Eliminate the wrong shows by measuring your results and cutting shows that don’t measure up. Cut shows for reasons such as low ROI, low turnout, not meeting objectives, bad match between audience and your target market, and shows that are too far away. Don’t be afraid to stop going to poor-performing shows because “you’ll be missing out” or “you’ll be conspicuous because of your absence.” Do not indulge in the 'Fear of Missing Out'. #FOMO
Skyline Exhibits, in conjunction with Red 7 Media Research & Consulting, received survey responses from 393 exhibitors who wrote in 514 answers for stretching their trade show budgets.
Here are 101 ways to cut your budget that leads to profitable trade show experience.
Do a rental instead of purchase. Ask about lease to own programs. If it’s a rental, find out what the cost to rent would be over 2 or 3 years. Since you’ll own the graphics after year 1, you’ll pay less for years 2 and 3. A bigger booth with a useless exhibit means colossal failure for your company.
OR, Exhibit at fewer shows, which cuts your show booth space rental costs. Exhibiting at fewer shows also means lowering your exhibiting costs overall — no booth to ship and install, no show services, no promotions, and no booth staffers for travel and hotel.
OR, Even better, eliminate the wrong shows for your company. Eliminate the wrong shows by measuring your results and cutting shows that don’t measure up. Cut shows for reasons such as low ROI, low turnout, not meeting objectives, bad match between audience and your target market, and shows that are too far away. Don’t be afraid to stop going to poor-performing shows because “you’ll be missing out” or “you’ll be conspicuous because of your absence.” Do not indulge in the 'Fear of Missing Out'. #FOMO
Skyline Exhibits, in conjunction with Red 7 Media Research & Consulting, received survey responses from 393 exhibitors who wrote in 514 answers for stretching their trade show budgets.
Here are 101 ways to cut your budget that leads to profitable trade show experience.
Booth Budgeting — Do: Have Quantifiable Goals
Communications Goals that includes brand influence, identity, awareness and brand positioning is hard to measure. To be able to attach a dollar figure to an abstract goal, you need to correlate it with a specific outcome.
For such an abstract goal, you can arm yourself with information by knowing how many people visited your booth, or how many people visited your website as a result of your exhibit. We have found that this latter figure is often the one missing from most trade show manager’s data sets, often because they don’t use tracking URLs and Google Analytics to prove exhibiting’s contribution to inbound marketing.
The other tangible goals that you can assign value:
Number of sales leads. Identify the number of booth visitors who commit to a sales contact or other specific sales-related step after the show.
Close rate. Estimate the average percentage of trade show leads that ultimately result in a sale or contract.
Average value of a sale or contract. If you'll be promoting multiple product lines at the show, develop a weighted average based on the level of interest for each product in your exhibit.
Try this tried and true 4 step method for measuring the value of your trade shows.
Communications Goals that includes brand influence, identity, awareness and brand positioning is hard to measure. To be able to attach a dollar figure to an abstract goal, you need to correlate it with a specific outcome.
For such an abstract goal, you can arm yourself with information by knowing how many people visited your booth, or how many people visited your website as a result of your exhibit. We have found that this latter figure is often the one missing from most trade show manager’s data sets, often because they don’t use tracking URLs and Google Analytics to prove exhibiting’s contribution to inbound marketing.
The other tangible goals that you can assign value:
Number of sales leads. Identify the number of booth visitors who commit to a sales contact or other specific sales-related step after the show.
Close rate. Estimate the average percentage of trade show leads that ultimately result in a sale or contract.
Average value of a sale or contract. If you'll be promoting multiple product lines at the show, develop a weighted average based on the level of interest for each product in your exhibit.
Try this tried and true 4 step method for measuring the value of your trade shows.
Booth Budgeting — Don't: Be Fooled by the Looks. Consider all the Factors Involved with the Design
You might be able to get an exhibit cheaper from one vendor over another; but if the exhibit has to ship in (6) 4’x 4’x 8’ wooden crates compared to an exhibit that breaks down into smaller parts and uses less crates, you’re going to pay more in the end for shipping and drayage and anything else that is priced by weight.
US DRAYAGE RATES
Advance Shipments to Official Service Contractor (per CWT) — $106.21
Direct, Crated Shipments to Exhibit Hall (per CWT) — $99.00
Direct, Crated Shipments to Exhibit Hall, with Special Handling (per CWT) — $126.07
Direct, UnCrated and Loose Shipments to Exhibit Hall (per CWT) — $142.54
Booth Budgeting — Do: Ask Plenty Questions Learn About Varied Options
Your trade show budget is obviously not unlimited. The more you can stretch your booth budget, the more you’ll be able to do with the resources you have available. Think about lighter construction material that makes impressive architectural stance.
Ask your exhibiting house about their different offerings. Ask them about creative alternatives to hanging sign to save the rigging cost. Lighter materials will often be more cost-effective and can meet your needs in a stylish way.
Ask your exhibiting how many man hours for set and take down of your booth. Ask them about overtime charges, Freight liability, Insurance charges, I&D contracts, Asset Management Charges.
Skyline Exhibits, in conjunction with Red 7 Media Research & Consulting, received survey responses from 393 exhibitors who wrote in 514 answers for stretching their trade show budgets. Here are 101 ways to cut your budget that leads to profitable trade show experience.
You might be able to get an exhibit cheaper from one vendor over another; but if the exhibit has to ship in (6) 4’x 4’x 8’ wooden crates compared to an exhibit that breaks down into smaller parts and uses less crates, you’re going to pay more in the end for shipping and drayage and anything else that is priced by weight.
US DRAYAGE RATES
Advance Shipments to Official Service Contractor (per CWT) — $106.21
Direct, Crated Shipments to Exhibit Hall (per CWT) — $99.00
Direct, Crated Shipments to Exhibit Hall, with Special Handling (per CWT) — $126.07
Direct, UnCrated and Loose Shipments to Exhibit Hall (per CWT) — $142.54
Booth Budgeting — Do: Ask Plenty Questions Learn About Varied Options
Your trade show budget is obviously not unlimited. The more you can stretch your booth budget, the more you’ll be able to do with the resources you have available. Think about lighter construction material that makes impressive architectural stance.
Ask your exhibiting house about their different offerings. Ask them about creative alternatives to hanging sign to save the rigging cost. Lighter materials will often be more cost-effective and can meet your needs in a stylish way.
Ask your exhibiting how many man hours for set and take down of your booth. Ask them about overtime charges, Freight liability, Insurance charges, I&D contracts, Asset Management Charges.
Skyline Exhibits, in conjunction with Red 7 Media Research & Consulting, received survey responses from 393 exhibitors who wrote in 514 answers for stretching their trade show budgets. Here are 101 ways to cut your budget that leads to profitable trade show experience.