Growing up, my mother often said, “Watch your pennies, and the dollars will take care of themselves.” This applies well to trade shows, where managing expenses can make or break your success. Here’s a roadmap for building your trade show budget.
Trade Show Expense Breakdown
To begin, here’s a general percentage breakdown of typical trade show expenses. Adjust these figures based on your specific needs and strategy.
- Exhibit Space: 27-35%
- Exhibit Design & Construction/Graphics: 18-23%
- Promotion/Marketing: 5-8%
- Staffing (Travel, Lodging, and Per Diem): 12-15%
- Show Services (Shipping, Installation/Dismantle, etc.): 12-14%
- Miscellaneous/Other (Lead Capture, Asset Management): 6-8%
These numbers are flexible, so you can tailor your budget based on booth size, materials, and technology needs.
Key Cost Areas in Your Trade Show Budget
Trade Show Exhibit Space – 27-35%
Exhibit space is a major expense and can range from 25-38% of your budget. Carefully select trade shows that best align with your goals and target audience to get the best return on investment.
“I like to advise our clients to begin by clearly defining their goals for the year and evaluate each show to see how well it aligns with what they want to achieve. It’s better to attend fewer shows that reach the right people and delivers on the best return on your investment,” said Captivate Exhibits Executive Vice President, Dave Jentz.
Exhibit Design & Construction plus Graphics – 18-23%
There’s a lot that goes into creating the right trade show exhibit for your organization. Before even beginning the design process, it is important to consider your overall goals, think about your audience and their needs, and consider the best ways to connect and engage with them in meaningful ways.
This portion of your trade show budget is highly variable and is based on whether you build something custom or use rental elements, the level of technology you incorporate, the size of the exhibit footprint, and more. Think of it like buying a car. Are you looking for an economy, mid-range, or luxury vehicle? What bells and whistles do you want your car to have? Plus, are you looking for greater in-booth engagement?
If you incorporate technology, the price can jump up quickly. These additional considerations can significantly impact and change your budgeting price range. That’s why it’s critical to be crystal clear on your target customers and how you can best engage them to drive awareness, preference, and/or purchase consideration.
When evaluating your budget for this expense, be sure to amortize the cost across a number of shows you plan to attend. This will give you a more realistic picture of the per-show cost of the exhibit you create.
Let’s look closer at some things to consider and ideas to control costs as you approach this wedge of the trade show budget pie.
Size & Configuration. The cost of a trade show exhibit increases along with the size of its footprint and configuration. The larger the space, the more opportunity you have to go big; there are fewer height restrictions and you have the ability to add hanging ceiling components. I feel a bit like Captain Obvious saying this but… smaller booths will have a smaller price tag and an inline booth will not be as expensive as an island booth. If you exhibit at multiple shows that have varying exhibit spaces, you may need flexibility and a booth that is built for scalability so you can expand and shrink your exhibit with greater ease.
Clearly understanding the exhibit space(s) you are working with and venue restrictions will help avoid missteps in the design process. Do you have a backwall to contend with? Do you have obstructions like poles and structures from the venue you need to work around? What are your height restrictions? Pay close attention to traffic flow by identifying main aisles and entrances.
Materials. Where to start?? Your selection of materials has impact beyond just the look of your booth. It is tempting to only consider the aesthetic without fully understanding the cost implications of the decisions you make on materials. For example, size and shape are important! Often materials come in standard shapes and colors so sticking to those can save you money. If you’re looking for unique finishes, consider the price comparisons on more standard options before making final selections, it can help your bottom line.
It’s an often-overlooked aspect of choosing exhibit materials, but what you select can add cost to your drayage (material handling) expenses. The heavier your exhibit is to ship and move, the more expensive it will be to ship and receive your crates at the show. Work with your exhibit house to discuss options for selecting lighter materials for the exhibit and its shipping crates.
“One way to keep drayage costs down is to use fabric graphics and modular display options rather than heavier wood structures,” suggests Matt Von Reuden, Captivate Exhibits Sales Representative.
Technology. Today, technology plays a multi-purpose and indispensable role in exhibiting at trade shows. With regards to your exhibit, technology can be used to grab attention, showcase a product, service or explain a process, entertain and engage your audience, and create a multi-sensory, experience. Before incorporating technology, develop a quick plan. What is the goal of using technology? How do you want your audience to use or engage with the technology? How does it support or enhance your team’s in-person engagement efforts in the booth? Is it to create a wow factor to enhance brand perception? Are you using technology to demonstrate a product or service? Is it to introduce a new product launch? The possibilities are extensive.
Understandably, the technology choices you make play a big role in your design and costs. Aside from renting or purchasing the tech (charging stations, monitors, augmented and virtual reality, touch panels, etc.), you need to account for additional costs such as rigging, electrical, special handling, on-site technical support, and content creation. On the flip side, using technology can provide a way to save money if it replaces the expense associated with displaying your products, especially if your product is oversized, heavy, and difficult to ship.
While an investment, the payoff can be worth it. Experiential marketing is the name of the game and technology can support that effort seamlessly. Here are a few fun examples that may help you visualize how you can use technology to increase your level of experiential marketing in your own booth.
Graphics. Having the right, high-impact, eye-catching graphics in your trade show booth is vital to standing out on the trade show floor. When it comes to content on graphics, remember, less is more. Make it visually interesting, let your in-booth team and supporting marketing tell the rest of the story.
One way to manage your graphic costs is to ensure that all the right stakeholders have signed off on the design prior to beginning production. This helps minimize any re-design costs or worse, re-printing costs.
EXHIBITOR Magazine has an excellent article on four factors that can impact your graphic design costs.
Promotion/Marketing (5-8%) + Staffing (12-15%)
Generating interest before, during, and after the show requires strategic marketing efforts. Consider social media, digital ads, and printed materials. Staffing costs, including travel, lodging, and meals, can vary significantly. Effective training is also essential to ensure the team communicates key messages clearly.
Show Services – 12-15%
Logistics costs like shipping, drayage, and installation/dismantle add up. Ordering services in advance can help you avoid rush fees. Group shipments to save on drayage, and avoid weekends for labor to reduce overtime costs.
RELATED POST: The Definitive Guide to Saving Money on Trade Show Services
Other – 6-8%
This category includes lead capture, asset management, and storage. Managing trade show assets effectively is critical, and storing displays in a climate-controlled facility can help maintain their quality.
Captivate Exhibits offers a turnkey program that has proven to save clients time and hassle. Our team cleans and/or refurbishes items, tags them for easy identification, and stores them in a clean, climate-controlled facility. Our online asset management program allows for easy tracking of not only stored trade show exhibit items, but of trade show schedules, logistics, and shipping. This is accessible 24/7, so clients can easily manage their trade show assets at all times. You can learn more about this service here.
Final Thoughts on Trade Show Budgeting
Planning and budgeting for trade shows involve many details, but being well-prepared can make all the difference. Captivate Exhibits has a knowledgeable team ready to guide you through each step to maximize your trade show success. Reach out to our experts for professional support on your trade show journey!