Sizing budgets to booth size

When upgrading from smaller spaces to larger spaces make sure you also grow your budget accordingly.

My example is a show that was on a schedule last year and is still on this year, but a 10x20 space was purchased rather than the 10x10 that was bought last year. The show was a success, so we wanted to expand our presence. This year's (inherited) budget was based on last year's plan (not actuals). Last year, the exhibit was a portable in a 10x10 space. This year, a custom exhibit with a larger staff graced the 10x20 space. Not only did the cost for the space itself (the real estate), but the cost of services (cleaning, drayage, freight, electrical, labor) grew along with the complexity of the presentation.

Gone was one guy (probably a sales guy) setting up a pop up on an unpadded rental carpet. In it's place was a custom exhibit that came crated and required professional labor to set up. In addition, multiple computers requiring internet lines and more electricity were in the booth. More staffers taking up more travel budget and running complex programs that needed attention to design and load on the computers came with the package.

Needless to say, the $10K budget did not come close to covering the $30K final outcome. So, other shows will either be not attended or downsized to meet the budget.

Lesson learned: always, always look at last year's budget and grow the planned budget for the next year. If the size increased, everything has to grow, not just the space cost. Plan on a 3 to 1 growth going from 10x10 to 10x20. But be realistic.

TTSG

Budgeting

Trade show marketing is an expensive proposition. Buying the space is just the start. There are some rules of thumb of how much to expect to spend. When you go to set up your budget, here are some broad categories:

1. Space
2. Exhibit, graphics, services and freight
3. Promotion

Space. Probably your biggest cost, it is what the exhibit sits on and defines your space in the hall. This varies from size (tabletop to large custom) to location (front or back of the hall). Expect to spend upt to half (50%) of your allocated budget for this.

Exhibit, graphics, services and freight. The rest of your budget will be spent on these items: buying or renting an exhibit; designing and producing appropriate graphics illustrating your products and services; buying the support services (electrical, drayage, material handling, rentals); and the transportation to and from the show. Of this, freight is probably the largest percentage of the money left over.

Promotion. Set aside an amount at least equal to the space cost to promote your participation in the show: pre-show mailings, e-mail blasts, advertising, post-show mailings and followup.

The budget process starts at a 40,000-foot level and goes all the way to the ground. That is, it would be best to have a “bottoms-up” approach to budgeting so that you can be sure to meet it and not exceed it. Set the budget for each show and then roll those individual budgets up to the total number allocated for the program. If you have to trim, you can eliminate whole shows or allocate more budget. Don’t reduce the budget of indivual shows to meet the top goal without being sure you can produce the show effectively for that reduced number. It’s the kiss of death to underproduce a show just to go.

TTSG