There is no doubt that exhibiting can bring great results and when managed correctly, provides a good return on investment, amongst many other benefits. A 2005 study by Vivid Interface in the UK asked exhibitors to estimate the ROI in relation to the cost of exhibiting at the show. A majority of 53% stated that they expected the gross value of sales to be ‘at least three times the cost of exhibiting’.
Once you have decided on the show you want to attend you then need to look at putting together a budget forecast. Costs can easily escalate out of control resulting in negative financial implications so budgets need to be carefully monitored throughout the preparation stage as well as during the event itself The key to cost effective exhibiting is to spend just as much as is required to achieve your objectives and nothing more.
Look at the value of the market covered by the show, agree on a forecast of what you can reasonably expect to achieve in sales and marketing terms. Draw up your budget based on the activities you plan to get involved in, include activities on and off the show stand. Unfortunately there is no easy formula for determining how much money is required to achieve optimum return on investment but there are guidelines to follow to help draw up a realistic budget. The following are costs to consider when drawing up your budget:
- Space. Usually charged by the square meter. Chose space only or a shell scheme which consists of a panel system on the stand perimeters, with a named headboard.
- Stand Design. Can be very simple to extremely complex. Some exhibitors will chose to do this themselves or a stand designer can be employed for maximum impact.
- Stand Build. Most companies will employ a stand builder to build and breakdown the stand. You can purchase a combined design and build service.
- Lighting and Electrics. You will need to provide power and light. You may also require AV facilities as well as internet connections and computer equipment.
- Stand Items. Stand graphics, sign boards, furniture hire, floral displays, hostess/translator, if required.
- Literature & Promotional Items. Costs of pre show promotion - advertising, mailers. Brochures and leaflets to give away at the show itself plus any promotional gift items. Cost of show catalogue advert and any sponsorship opportunities.
- Transport. Stand brochures, display items and any of your own furniture will need to be transported to and from the show.
- Staff. In addition to having to pay staff for longer hours, there are other costs involved such as accommodation, food, telephone calls, travel and parking. Plus any staff training involved. Any additional exhibitor entrance badges.
- Catering costs for both the stand visitors and your staff.
- Insurance & Damage Cover. Take out adequate insurance for your goods on display, and also liability insurance should anyone hurt themselves whilst on your stand. Also bear in mind any costs related to damaging the stand site or shell scheme panels.
- Clear up costs. There could be a charge for this and for stand cleaning so check with the organizer.
When you arrive at a total you will be in a better position to evaluate the real impact on your budget and the necessary returns that will need to be made to make that expenditure worth while. At this point you may want to re-evaluate the size of the stand you intend to book.
You can save costs by booking your stand at the last minute and obtaining a reduced price. However bear in mind that these stands may well be poorly situated or indeed the show may be sold out.
A far better way to save costs is by stand sharing. This is an excellent option for smaller companies with complementary but non competing products who sell to the same market, it can also have improved marketing and PR implications. Such country, or regional, pavilions have a larger profile and will attract more interest from visitors and media. Trade organizations, professional bodies and governments all fund such pavilions. Alternatively you could consider sharing with your local agent or distributor or the manufacturer whose products you represent.
Remember careful planning can avoid unnecessary expenditure as almost anything done at the last minute will cost substantially more. As always good preparation and research are the foundations to success.