Setting a Budget Plan
Exhibiting at a trade show can be an expensive business with numerous factors to be considered - renting floorspace, creating a display, promotion and assigning staff. Setting (and allocating) your budget from the outset is is always a good idea so we have put together five methods for putting together a preliminary budget.
1. SPACE COST AS A MULTIPLIER
Typically booth rental space makes up around one-third of a company's total show costs. So, if you know roughly how much the exhibit space is going to cost you (e.g. $15,000), simply multiply this by three to get an estimated total show budget. (Note: this formula assumes that you figure amortised exhibit cost into your show budget - if you already own an exhibition stand your total show costs will obviously be less).
If you have exhibited before and tracked how much you spent on a particular show, you can simply adjust for inflation and project the budget for the upcoming show. However be wary that this type of budgeting can catch up with you if you don't consider where you previously under or over budgeted.
3. COST PER SQUARE METRE
Tracking previous shows also allows you to figure how much, on average, your company spends per square metre to exhibit. Add all the costs associated with each show (including amoritised exhibiting costs where appropriate), then divide that by the number of square metres assigned to your booth. This should give you an average cost per square metre. For example, let's say that last year you spent $40,000 and your booth was 6 metres by 6 metres. Divide $40,000 by 36 square feet and your cost per square metre to exhibit is $1111.00. Calculate the cost per square metre for each of the shows you attend. Add these costs and divide by the total number of shows in your schedule for an average cost per square metre. Then when it comes time to budget for a new upcoming show you should have a good starting point.
4. PERCENTAGE OF OVERALL MARKETING BUDGET
Perhaps you haven't exhibited at any trade shows. How then should you figure an overall trade show budget? A quick way to calculate this is using the knowledge that most companies spend 15-20% of their total marketing budget on trade shows.
3m Stands ----------- 6m Stands ------- Island Stands ---- Modular Stands
For further information about any of the above points or to get started on the process of creating your exhibition stand, contact NVP Exhibits via email or on (02) 9357 3377.