Budgeting for Trade Shows - Part One
Getting ready for next year? Deep in the budget crunching process? Need to justify the bottom line? Wonder where and what the Bottom Line really is?
It’s important for everyone to know about the budget. Why? Trade shows cost money, so the more people who are aware of the investment a firm makes in this marketing venue, the more suggestions they should have for spending money wisely and improving the return-on-investment.
Today, we look at the first three line items - (1) Rent on Booth Space - (2) Electricity, Labor and Other On-Floor Expenses - (3) Your Display, Graphics and Accessories

(1) Rent on Booth Space
This fee is based on a flat fee or square foot (meter) of space. A small show may charge a flat fee based on these considerations:
-The length of the event - cocktail reception, luncheon, half-day
-The size of the space - may be table tops only or up to 10’x10’
-Profit vs. non-profit - non-profits are more likely to charge a flat fee
-Location - local shows are more likely to charge a flat fee
-In the US, the average cost is $25.00/per square foot. (10’x10’ space = 100 sq. ft x $25.00 = $2,500.00)  Demand for space determines what the market will bear.  Space rental is for the real estate - the gray concrete. Check your Exhibitor’s Manual for details. Rental generally does not include: carpet, electricity, labor, storage and other creature comforts. It may include (1) draped 30” high, 6’long table, (2) chairs and (1) wastebasket.

(2) Electricity, Labor and Other On-Floor Costs.
In your Exhibitor’s Manual are the forms for all the extras to make your show a hit, including contractors for the physical part of the show.
• There are two parts to electricity for your booth. The facility (generally a convention center) will charge you directly for access to electricity at your booth. The labor (generally union) will hang your lights, plug in your computers and make certain all your electrical items meet code.
• You may use labor (union) to I&D (install-and dismantle) your exhibit, hang banners and other requirements of the hall.
• NOTE - In the U.S., fire codes are the responsibility of the local government, and if your exhibit does not meet codes, you will be asked to repair, replace or remove it.
(3) Your Display, Graphics and Accessories
The cost to purchase a custom exhibit? Plan to spend $100+ per sq ft. The cost to purchase a portable display with graphics and accessories? Plan to spend $30-$75 per sq ft.
There is another option: to rent your booth and purchase your graphics. When to rent?
• You do four or less shows per year
• You purchase a space larger than your existing display can be used effectively
• You want to make a one-time statement or test-drive a new display system
• One show overlaps the time frame of another show or the shipping time frame is very tight
• Freight charges are higher than your budget - i.e. international venues
• The show provides inexpensive structure
 
The cost to rent is 25%-40% of the retail cost of the display. For example, if the new display costs $5,000, expect to pay $1,250 to $2,000 for one show. Generally this includes I&D, and you save on freight, drayage and storage.

READ MORE about MONEY and RETURN-on-INVESTMENT in "The Trade Show Reader - It Takes More Than a Display and a Handshake to Sell at a Trade Show". Buy it at amazon.com or at the TSTi site.
 
For More Information
Julia O'Connor
Speaker • Author • Consultant
Trade Show Training, Inc.
PO Box 17155 • Richmond, VA 23226
804-355-7800 • 800-355-3910
www.TradeShowTraining.com •
julia@TradeShowTraining.com