Costs can vary greatly for companies exhibiting at a trade show. Below, we outline the trade show budgeting process to help you achieve your marketing goals without going over budget.
The budget for exhibiting at a trade show can vary and depends on your marketing goals. Include as much detail as possible to get a realistic picture of your trade show investment.
Determining Trade Show Budget Allocations
Knowing the maximum amount of money, you can spend exhibiting at a given event will help you plan and stay within that limit. Your marketing department will have created a budget for trade shows and conferences your company will attend. Their determination is based on past experience at the event(s). If the trade show is new to the organization, then the amount spent on a similar show was probably used to budget.
Knowing your goals for the following areas will help you determine how much of your budget to allocate to each. The budget designated for the trade show provides your boundaries.
Product/Service Differentiator
Your trade show exhibit must highlight your product/service and its unique selling proposition (USP). You may want to demo your product in the booth, feature a sales video, or have an interactive presentation of your key service. The way you choose to feature your USP will impact booth cost. This is an area where a sizable percentage of an exhibitor’s budget is typically spent.
Target Audience
The target audience of a trade show can have an impact on the cost of a booth in a few separate ways.
Booth size - If your trade show and your audience are large, you may need a large booth to accommodate more visitors. A large booth will cost more than a small booth. It will also take up more square footage on the conference floor, which also adds to costs.
Booth location - Prime locations, on corners and near the entrances will cost more so expect to pay a premium for a high-traffic location.
Booth design - Is your audience high-end or luxury? Do they expect to see a lot of technology? Are you known in the industry for top-notch customer service? If so, you may need more staff, high-end furniture, or very customized electricity and video displays which add costs.
Marketing
What do you want to achieve at the trade show? Do you want to generate leads, increase brand awareness, showcase products/services, and/or network with other professionals? List your goals, rank them in order of priority, then decide what percentage of your budget you want to allocate to each goal. You can read more about expected marketing costs later in this article.
Determining an Individual Trade Show Budget
It’s important to identify as many costs as possible to hone in on the overall cost of exhibiting at each trade show. Potential costs include:
What about unexpected costs? Will an extra employee be added to the exhibit team on short notice? Perhaps a last-minute change to the digital campaign is needed prior to the event. Sometimes, needed materials or even furniture doesn’t arrive as expected and you must scramble for replacements. The only certainty is that there will be at least one surprise expense; it’s wise to plan accordingly. Many companies use one of these three methods to determine a trade show budget:
The Ballpark Estimate
Industry surveys report that entire show costs are on average a multiple of 3 times the costs of the exhibit space. For a ballpark estimate of your total trade show budget, multiply your exhibit space cost by three. So, if the cost of renting a 20’ × 20’ space (400 square feet) is $20,000, then your approximate total trade show budget would be $60,000.
Historical Cost per Square Foot Estimate
To estimate trade show costs based on the historical cost per square foot method, multiply the cost per square foot from the previous year, (which includes exhibiting costs plus all other attendance costs) by the square foot of this year’s booth.
For example, if you spent $80,000 in total on the trade show last year, and the space you rented last year was 20’ × 20’ (400 square feet), your cost per square foot was $200. $80,000/400 = $200.
Use the same formula to calculate the cost per square foot for every trade show you exhibited in the previous year. For example, the per square foot costs for four shows total $50, $100, $150, and $200. Add up these costs and divide by the number of shows.
$50 + $100 + $150 + $200 / 4 = $125
Next, multiply the sum by the area of the space you’ll rent this year.
$125 x 400 sq. ft. = $50,000. This is the approximate amount you will spend for that trade show.
Average Cost per Lead Estimate
To use this method to arrive at an estimate, follow this formula: Total trade event spend from the previous year/number of leads from the previous year = cost per lead.
For example, $80,000/150 leads = $533.33 cost per lead.
Next, multiply how many leads are expected for the trade event you’re planning by the cost per lead.
For example, 200 x $533.3 = $106,660. This final sum, $106,660 is the estimated budget for this event.
Categories of Expenses within a Trade Show Budget
There are three primary categories of costs to consider when calculating a trade show budget.
Exhibit Costs
Booth Space - Cost varies for every trade show and is charged by the square foot. The average range for booth space in an exhibit hall is between $100-$150 per square foot of space. So, a 10’ x 10’ booth might cost between $10,000 and $15,000.
Exhibit Booth - You have two options for your exhibit booth design: buy or rent. If you plan to use the same size space at multiple shows or need a custom booth, it might make sense to purchase, but there are additional expenses such as shipping, labor, and graphics. The majority of exhibitors rent their booth either from the official services provider or an exhibitor-appointed contractor (EAC). If you choose to rent, the provider will ship, set up and dismantle the display, and print graphics.
Graphic Design - Whether you buy or rent, you will want to customize your graphics. It’s best to keep the design simple, make sure your logo is prominent, you choose colors that stand out, and the graphic clearly reflects your product or service. The average lifetime of booth graphics is a year; therefore, you will need to budget annually for new graphics.
Flooring and Furnishings - Renting flooring and furnishings from official show providers usually is the most budget-friendly option because shipping these items to and from the show site can be expensive. If you rent, shipping and labor, to move the items to your booth, are included in the cost and you ensure they will be delivered on time. Multiple carpet and vinyl colors are available along with standard and specialty furniture packages. Discounts on flooring and furnishings packages, when they are combined, are available for exhibitors at GES shows.
Logistics - Even if you are renting a booth, furniture, and flooring, you still might need to ship products, giveaways, banners, displays, or signage. Using a logistics provider that specializes in trade show shipping is vital to ensuring your shipment will arrive on time and at the right location. Booking a round trip or a caravan, shipping from trade show to trade show, 2-3 weeks before the show, will be the most cost-effective.
Labor, Material Handling, and Storage - If your booth needs electricity, lighting, a hanging sign, or installation labor, you will need to place an order on the show’s exhibitor ordering website. Material Handling is the moving of booth items from the shipping provider to the booth space, storing shipping materials during the show, and returning items to the shipping dock at the end of the show. This service is billed at the end of the show. The cost is typically determined by shipment weight and when it arrives. Any crates, boxes, pallets, or packing materials that need to be stored during the show are included in the material handling costs.
Staffing & Travel Costs
Costs to take care of your team at trade shows can add up in a hurry when you total up travel, meals, lodging, entertainment, tips, and more.
Fortunately, many airlines and hotels offer group rates to curb expenses. Another option is to set a per diem for items like dining, entertainment, and tipping. Take advantage of early bird registration rates and remember to ask about discounts when speaking to booking representatives.
Promotional Costs
Pre-event marketing can increase booth visitation
GES is Ready to Assist You
We’ll help you with all of your trade show needs “from soup to nuts.” Take advantage of our exhibitor services when you are in the planning process and visit our exhibitor ordering website to find your show.
If you are planning to attend a GES trade show, let us help!