Having already prepared your strategy and objectives for attending an exhibition as well as completing the trade show Marketing Plan, you now need to produce a working budget. The budget needs to be flexible and, as a guide, the trade show cost is normally three times the cost of the exhibition space.
Setting the budget is important to ensure you have funds that are sufficient to fulfil the exhibition’s objectives and to make sure that the exhibition is delivered to the right standard. The details of how to set a budget are discussed below.
Budget Checklist and Budget Control
- Compile a checklist of:
– Fixed costs which are normally around 60% of the total budget.
– Variable costs (for example, supplier costs). This is normally around 25% of the budget.
– Calculate a reasonable contingency of around 15% of other budget costs.
– Review your costs regularly. It is most important to establish budgetary control of costs at the beginning of the project planning. This will enable you to know where you are with the on-going costs during the build up to the exhibition. You may find you are able to add enhancements to the stand or you may need to cut back on planned expenditure.
These costs need to be covered regardless of the number of attendees or size of an exhibition. Dependent on the type of exhibition stand they normally include exhibition floor reservation and associated payments to the exhibition organiser, the stand build, and furniture which probably makes the largest proportion of the costs.
- Fixed Production Costs – these include:
- Exhibiting charges due to the organiser for floor space only or a shell scheme, online marketing entry, exhibition brochure promotion, logo, sponsorship, badges, and storage space.
- Stand build – the design of exhibition stand and associated costs, the set build or refurbishment of a pre-existing stand, flooring carpets, backdrop, furnishings, graphics, banners, and lighting hire and installation.
- Supplier costs for furnishings, hire of equipment, such as PC or demonstration equipment, products, lead collection, scanner hire, hostess, photography, security etc.
- Audio Visual – such as screen, projection, video, camera recording, and laser projection.
- Sound if using for presentation on the stand to include – speakers, microphones of all types, CD player, mixer, cabling, adaptors, music etc.
- Speaker support – design, image production, animated images, script writing, and training rehearsals.
- Crew – you may need to allow for the costs of people for design and equipment hire, installation, freight transportation, rigging and de-rigging and all the technicians for any equipment used in the exhibition (as listed above). You may need to allow for per diem allowances for the exhibition crew too.
Fees and Insurance – this includes event management fees if an agency is being used to help with exhibition management or logistics. You may also need to pay for equipment insurance, or event insurance to cover public liability etc.
Invitation process – although the exhibition organisers will be inviting the general public you may still wish to invite your specific clients or potential clients separately. This will be a once only cost and is not dependent on the number of delegates attending. This can include:
- Invitation design costs.
- Print costs for direct mail.
- Website setup.
- Database list of invitees.
- Telemarketing follow up.
- Any advertising, posters and promotional costs.
- Follow up activity to boost attendee response.
Hospitality costs – This can include both on-site hospitality on the stand, such as food and drinks, and off-site hospitality such as a dinner or a party for your clients and prospects during the exhibition.
Meeting room hire – if required during the exhibition for private meetings with clients. Normally you will have to pay a deposit on the room hire when booking for the event with a sliding scale of payment to be made as you approach the event. Note that some conference centres do not always include the same services as hotels and these can sometimes be an additional charge to the room hire.
Set up Services – this can include supply of electrical facilities, power, waste disposal, cleaning of the stand, Wi-Fi Access and telephone. Always check exactly what services are included and for what period they are offered.
These are usually the smaller proportion of your budget and will be dependent on the number of staff and attendees that you expect to attend. It is impossible to be absolutely accurate on your variable costs as exhibitions are dynamic events and constantly change. This is why it is important to create a workable budget in the early stages of your planning. Past historical documentation can be valuable when looking at numbers and previous costs. The variable items need to be checked carefully if the budget is to be kept under control.
Variable costs include:
- Staff food & drink.
- Refreshment breaks.
- Accommodation of staff.
- Travel costs for staff.
- Training of staff.
- Stand promotional give-aways.
- Graphics and print materials.
- Press packs and promotion.
- Client entertainment and dinners.
Always build in at least an extra 15 % of variable and non-variable budget costs as a contingency budget for the unexpected, such as additional drinks, crew overtime, additional catering, and unforeseen hire costs etc. You also need to put in here any currency conversion fluctuation that you may need to cover.
Reference: Planning Successful Exhibition Budgets – http://www.tradeshowinstitute.com/downloads/Trade%20Show%20Budgeting.pdf