Strategic Budgeting Tips for Trade Show Booth Success
A fair or trade show can be an excellent chance for an organization or company to draw new customers and investors to purchase their service or product. Since most of those who visit these shows are truly curious about what the trade show offers, the business can create an enduring client base.
So, the company must present the most effective version of itself in its booth. That is the version customers and investors will purchase or invest in. This version will become the main focus of the entire business.
Success often requires a substantial investment of financial resources. That makes an international trade show costly.
Starting Point of Budgeting:
Planning a budget for the expense of a trade show exhibit is a challenging task. Many variables play into the equation and must be considered before deciding on a ballpark. Before you begin to determine the amount, you'll have to budget, take into consideration these factors:
1. What's your USP? Awareness of the products or services you're selling is essential. Be sure to stick with your USP for your service or product and why it serves the user. Concentrate on the purpose and build all your marketing strategies around the same idea. Anything that isn't could be considered a waste.
2. What are your objectives? It is crucial to determine who your target customers are and the amount you'd like them to attend. The number of guests will impact the way you arrive at a cost.
3. What is your maximum limit? Knowing the total amount of money, you can spend on the exhibit is essential to determine the rest of your activities within the limits.
Once you understand the above questions, it is time to begin planning your budget.
Practical and Traditional Approaches to Budgeting Logic
It is possible to do this by various methods. Still, one of the most effective methods is multiplying your participation costs, i.e., renting an exhibit booth, by 3 to get an approximate figure. According to Myriad research, booth spaces cost about 1/3 of all exhibition costs.
Thus, a figure of 3 is an estimate of the amount that you're estimating.
For instance, if the rental cost for a 30x30 ft (=900 square. feet) location is $20,000, the approximate cost would be $75,000.
"Cost per square feet calculations" is a second method to calculate the budget. It is called an alternative to the "Cost per square feet." Determine the cost you paid per square foot for the previous year's exhibit by adding up all expenses and dividing the sum by the total size of the exhibit's area.
If, for instance, you paid $100,000 for an exhibition last year and the exhibit space that you were renting was 30x30 feet (=900 sq feet), your price for each square foot is 75,000/900 = $83.33
Then, use this same method to determine the price per square foot of each exhibition you participated in during the past year. For instance, the cost per square foot for four shows will be $70, $75, $75, and $100.
Add these costs together and divide by the number of shows.
70 + 75 + 85 + 100/4 = 82.5
Then multiply this average by the area of the area you're planning to lease this year.
Let's say, $82.5 x 900 sq. ft. = $74,250
$74,250 is a rough estimate of how much you'll spend in the next year.
The third method to accomplish this is by using an "Average Cost per Lead calculation".
Multiply the average amount you pay per lead by the number of leads you expect to receive this year, and you'll arrive at the amount you need to estimate.
For instance, If you pay on average $125 per lead and you expect to reach 200 people to view your site for this calendar year, the budget would be $125x200 = $25,000
Different Costs Which Go into the Tradeshow Budgeting Exercises
Other essential elements to be taken into consideration during budgeting are:
• Exhibit design: What type of display are you looking at? A primary, simple, straightforward display that displays your product, or a more vivid display designed to captivate your audience before the product's credibility is considered? What you choose to do with how you set the exhibit will have a significant impact on the overall price.
• Other services include water, Wi-Fi, lighting, and even cleaning.
• Promotive campaigns, both offline and online
• The shipping of goods both to and from the warehouse
• Staffing, Entertainment and travel
• Other miscellaneous expenses
Detailed Break-Down of Elements
Display Design: The research suggests that 53 per cent of people buy a service or product because of what they see during an exhibition (Source: CEIR 'Use and Benefits of Face-to-Face' research). The goal of design for exhibits is to make your message clear and loud to ensure that it does not take a long time for visitors to grasp the product's features and benefits.
There are a lot of booths at a tradeshow, and people can spend a lot of time at one booth. Naturally, the average attention span of a visitor is limited, and you're only given a small window to catch a potential buyer's attention. The design of your exhibit will be the primary thing to see an eye. It must be captivating enough to cause people to want to learn more about the details of your product.
Your product and its unique attributes, including its USP, should be elements of your exhibit's design. It can draw interest and make people want to find out more. For instance, if you're selling cosmetics and your USP states that you do not use harmful chemicals in your products, that must be part of the design.
You could also add interactive games that let people test the product so they can try it out for themselves. It is also possible to include videos to entice people. Sound, lighting and colours can also make an impact.
Exhibit Service: The exhibit services are lighting, Wi-Fi and clean-up services, audiovisual devices, carpet rental, dismantling and installation of equipment, computer furniture and more. That slowly but surely turn in 19% to make up the overall cost of the show. It is essential to list all items you'd like to include at your booth, right down to the last teacup, since even the tiniest incidental service could add up to the total price.
One method to accomplish that is to prepare an Excel spreadsheet of the anticipated expenses expected to be incurred and then distribute funds to the groups based on the cost of service provided in the city. Example: Labor Rates, Rates for Hotel, Food & Car Rental, Drayage Rates (per CWT), and Exhibit House Charges
Staffing: An additional essential aspect many overlooks is staffing. The personnel you choose to run and manage your booth may be an issue maker or deterrent. The rest of your booth is non-animate, and it's who your manager will have a connection with. Staffing, salary, bonuses, training, attire, accommodation, and food, among others, are some of the items required to maintain efficiency in the team.
When you travel to different cities to attend exhibitions, accommodations for your staff could be left in your pockets. One way this issue can be sorted out is to take advantage of discounts on business services offered by platforms such as Airbnb or travel agencies which provide discounts on packages. Similar methods can be used when booking tickets for flights. Naturally, booking in advance can save you money on travel expenses. Entertainment for your employees and prospective customers is a variable cost. The cost continues to rise regardless of the performance.
You should have a conversation with your clients following the trade show by having a meal or drinks, which could be costly. Make a handful of restaurants before your visit to find a great deal. Travel & Entertainment accounts for around 21% of your total expense.
Marketing promotion:
Marketing and Promotion is a crucial part of educating and attracting your customers. That includes pre-show promotions through offline and online promotions, the publishing and distribution of publications, and demonstrations of your product, which help the audience comprehend the exact appearance of your product. Marketing also involves giveaways that bring more traffic to your site and generate more than a brief curiosity among your audience.
Social media marketing is now playing an essential part in creating the image of an organization. For a long time, many companies in this business have decided to reinvent themselves with social media marketing and re-energize their market. The advantage of social media marketing compared to traditional advertising is the impact. It lets you identify and target the correct people to market your product. It also facilitates sharing with prospective customers and is less expensive than traditional marketing methods. Nowadays, it is possible to use this tool to the fullest potential and generate excitement about your trade show.
Printing brochures is a suitable method of educating your audience about your product. It is also simple to deliver to the location. However, the cost of printing is not inexpensive, and it is essential to consider which of the printed materials is best suited to your needs.
Product demos are essential as they assist the product in "selling itself". When customers can see the capabilities of the product and decide if it's valid or not, product demonstrations can also assist in addressing any issues customers might have, e.g. A customer may be worried about the compatibility of the software with their system, but this could be addressed by showing that it's. They also serve as "proof of belief" in proving the claims and statements you make when advertising.
Post-show marketing is just as crucial as the pre-and during-show promotions. If you manage to create many leads from your show, they will only be converted into a business if you follow up. If you have made specific promises during the show, make sure that you keep your word to the promises. Companies must fulfil their commitments if they hope to have loyal customers.
Logistics: Digital displays to trade shows, you'll be required to calculate the cost of transporting your promotional items to the location of your trade show. Shipping and drayage make up 10 per cent of the total expense. However, if you are exhibiting an extensive or complex exhibit, you might need to set aside a substantial cost for transport. The cost of shipping can be calculated early. Contact the shipping companies to inquire about their prices. Due to these costs, exhibitors use the trade booth hire service. That means that the delivery of the booth is part of the overall cost. The other element of transportation costs is drayage, the other portion. Transport must be planned and executed flawlessly because any lapses in execution can cause significant harm to your equipment.
Opportunity Costs: Opportunity cost is a hidden expense of attending a trade show that many people must consider. If you have to remove office employees to participate in an exhibits, you must feel the loss of productivity that their absence causes.
Most trade shows are profitable, so the cost of opportunities is an issue. However, it's essential to plan for the cost of losing revenue that taking many individuals out of work could result in for your company.
You can cut down on your opportunity costs by planning your schedule for when employees are out of the office to attend trade exhibitions. Although your office may not operate at 100% efficiency, you can reduce costs by assigning assignments to other employees.
The Final Word
The expenses of participating in trade shows are as distinct as the events and the Trade Show Booths. There are many variables to take into consideration when planning the trade show. If everything is executed promptly and well-organized with a well-organized budget, it can significantly help your company! Having a trustworthy advisor to help you navigate the budgeting process could make an enormous difference in your spending. Exhibits Studio's team takes pride in assisting presenters in selecting the best trade booth design to fit their budget and business requirements.
