Where Should Your Money Go? A Guide for Creating a Solid Trade Show Budget.

If you’ve been given a blank check to attend a trade show you’re really fortunate. This is not the case for most of us.

Most of us have budgets we need to adhere to. But it’s likely we do get to allocate where the money is spent. If you’ve been wondering how to allocate your trade show budget to get the most return on investment, we have a suggested breakdown for you.

In this article, we’ll cover:

• how trade show goals factor into the budget allocation
• identifying your fixed costs
• negotiating your non-fixed costs
• what percentage of your total budget you should allocate for each area

 

Why Are You Going to the Trade Show?

There is no magic allocation percentage for your personalized trade show goals. This is something you’ll need to work with on your own. But we will give you some numbers to play with. However, when adjusting these numbers it’s important to factor in your goals. For instance, if brand awareness is your trade show goal, swag and trade show booth branding will be priorities. If being seen as an industry expert is your goal, talking at sessions and designing a booth that is conducive to intellectual exchange is important.

The first step to setting your trade show budget is understanding what you want to accomplish.

 

List Your Set or Non-Negotiable Costs

There are certain costs in your trade show budget that you can’t control. You simply have to pay whatever the numbers are. While some people may argue that anything is negotiable, there is often less wiggle room in these numbers. Yes, if you are spending a lot of money with the conference or trade show, they may cover some of them for you. But getting a good deal in these areas is not as easy as simply shopping around for the best price. Securing discounts here will mean giving something in return, like a large sponsorship. These “harder to negotiate” costs include:

• trade show booth location (not the design but the cost to attend, the exhibiting space).
• trade show booth set up, installation and dismantling (if you have to use the in-house set up).
• drayage. While your shipping costs can vary by the carrier and how quickly you need it there, drayage has fairly set costs. Drayage costs depend on the venue or the handler but make sure you get an idea of what they will be for the time you need them. You can expect they’ll be about what you paid for shipping or slightly over that. The company handling the transport should be able to tell you what that will be. If they work with your venue, they likely have a standard per hour cost or per day storage cost. If there isn’t a set person assigned to the venue, drayage costs may fall under negotiable ones as you’ll need to select someone to handle the storage and transport of your booth and collaterals.
• lead gathering costs such as a bar code or QR code scanner rental. Some events offer tech rentals to help you collect leads more efficiently. Those costs are generally fixed and not negotiable. However, the event planner can sometimes throw in additional scanners or free rentals for sponsors.
• carpeting/flooring and other venue costs. Some trade show exhibit halls require all carpet and other booth floorings to be rented from them. If that is the case, this is a fixed cost. If not, you can negotiate with other companies. Find out from the event planner and venue if there are any other fixed costs in showing at their trade show. Convention centers often have specific vendors they work with so pricing is not as flexible as lining up your own vendor.
• per diem expenses of staff. You likely have a per diem for staff meals. Know that the more people you bring, the higher that total number will be. However, we listed this under fixed costs because whether you bring your customer service rep or your top marketing person, they likely have the same per diem for meals.
• housekeeping. If you’re attending a multi-day event, you likely have the option of securing housekeeping for your booth. That usually means vacuuming and emptying of the trash. While that might not seem necessary, ask yourself if you’re really going to have a staffer walking around the expo hall trying to find a big enough trash can to dump your refuse into.
• WiFi. Yes, you have to pay for WiFi at a trade show. Sometimes they’ll give you options on speed but often it will just be a flat, per day fee.

 

Factor in Floating Costs

These numbers make or break a budget. They are also a penny-pincher’s friend. Costs in this category can be negotiated and often the earlier you plan, the better deal you can receive. If you’re planning to attend a trade show, last-minute prep can increase costs by 20% or more.

Here are some of the things that can drive up a budget if you don’t shop around:

• booth design and creation. This runs the gamut on costs from $100-tens of thousands. Make sure you understand the level of complexity that’s most common for booths at the event you’re attending. A table and branded table skirt don’t work at every event, nor does a two-story booth design.
• storage for your booth between uses.
• shipping booth supplies from one spot to another (this does not include drayage charges but merely the shipper like FedEx. You can compare prices based on carrier and length of time it takes to get there.)
• swag. What you bring, how much of it, and how early you order will all change the costs in this area.
• direct mail and postage. While postage is a fixed cost, how many you do and what kind of mailer you do lands this cost in this category. You can save some money doing a smaller postcard than a larger letter.
• marketing collaterals. Not only can you shop pricing and print runs, the more you order, the less expensive printing is.
• tech and staff. Yes, there’s a cost to taking machines and people out of the office. We listed this in variable costs because, let’s face it, some people are invaluable in the office and taking them out simply costs too much.
• travel. You can shop around for hotel rooms and air travel to find the best price. Purchase them early for the most cost savings or whenever possible, travel on an “off” day like a Tuesday. Keep in mind the savings for coming in a day early on your flight might be offset by another night’s hotel stay and feeding the team.
• client entertainment. Whether you’re selling to new customers or thanking the ones you already have, you likely will do some entertaining at the trade show. Factor this into your budget as it’s a good way to connect with people in person, even if you’re only taking them out for coffee.

 

Trade Show Budget Breakdown

There are a lot of expenses in attending a trade show. But exactly what percentage of the budget should you be spending on each area? Here’s what we suggest. Each percentage is a part of the total trade show budget:

Exhibit Space: 30%

Show Services (as well as storage, build out, tear down, shipping, drayage): 25%

Exhibit/Booth Design (keep in mind this is for booth design, not simply a table with banners and display stands. Those are much more economical.): 20%

Promotional Materials (marketing collaterals, swag, promos, etc.): 10%

Travel and Hospitality (hotel, air, taxi, parking, client entertainment, etc.): 10%

Miscellaneous Costs (housekeeping, WiFi, lead acquisition tech rentals): 5%

If the event you’re attending is smaller, you can expect significant reductions in the show services (you may even bring the display stands and signage yourself), booth design, travel, and miscellaneous costs. However, it is important to save some room in your budget to ensure you have money for those extras you don’t expect.

 

At ThinkQuik, we help provide the pieces you need at a trade show to be a success in attendees’ minds. From swag matched to your company goals to low-cost trade show banners and displays. We can help you make the most of your budget without sacrificing quality. After all, while it’s important to be budget-minded, you never want it to show to your clients.

Call us today.