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Counting pennies - are you expected to produce more marketing results with fewer resources?

by Nomadic Display 25. June 2010 00:29
Every dollar counts. That’s true everywhere, but especially relevant in today’s competitive business environment, where success is measured by the figure on the bottom line.

Marketing managers are expected to produce more results with fewer resources, making it essential that every dollar spent is being utilized to its best advantage. To be successful, upper management evaluates trade shows and corporate events on their ability to produce a positive and measurable return.

According to the Center for Exhibition Industry Research (CEIR), companies spend over $24 billion annually on trade shows. Trade shows have proven to be more effective in achieving sales and marketing objectives, but they also command the significant share of the average marketing budget.

Picture 4The fixed expenses related to trade shows and events can be expensive. As you can see, exhibit space accounts for over 30% and show services require another 20%. So savvy managers are forced to look to the remaining variable expenses to save money: including staff travel and entertainment, promotion, and increasingly, display properties.

But how do you determine whether you should save money by renting your booth or purchasing it outright. Performing your own analysis is key to helping you clarify your exhibit acquisition decision. Below is an example based on a typical 10' x 20' display, used in Chicago and shipped from a warehouse on the East Cost.

This calculation is for an exhibit used once per year.
                          Rent          Purchase
Architecture       $4,200       $12,590
Graphics            $5,450       $5,450
Storage                 —           $4,200
Transportation*  $2,250       $2,250
Drayage             $1,750       $1,750
Labor                 $3,500       $3,500
Total                   $17,150    $29,740

This calculation is for the same exhibit rental vs. purchase for three uses in a year.

                          Rent        Purchase
Architecture       $12,600     $12,590
Graphics            $5,450       $5,450
Storage                 —           $4,200
Transportation*  $6,750       $6,750
Drayage             $5,250       $5,250
Labor                 $10,500     $10,500
Total                  $40,550     $44,740

* Unless you rent in the city in which it will be used.

If your company only attends one show per year then the economical option is to rent your trade show display. However, if your company attends more than one trade show per year your best bet is to purchase your exhibit.

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