|
|
30 -Second Budgeting
Here are five quick, down and dirty ways to estimate the cost of your
next show.
1. Space Cost as a multiplier
Exhibit rental space accounts for about one-third of a typical company's
trade show costs. So if you know how much the exhibit space will cost
you (say, $10,000), simply multiply that number by three to get an
estimated total show budget ($30,000). (This formula assumes that
you figure amortized exhibit costs into your show budget. If you already
own a booth, your total show costs would be less.) Don't know the
show's space cost yet? The average square foot cost for exhibits among
Tradeshow Week's top 200 shows is $20.97.
2. Historicals
If you tracked how much you spent on a particular show last year,
you can simply adjust for inflation and project the budget the next
show. But watch out; this type of budgeting can catch up with you.
You must analyze the details of the previous show to detect whether
you were under or over budgeted. Otherwise, you'll repeat the same
mistakes from year to year.
3. Cost per square foot
Tracking past show costs also allows you to figure how much, on average,
your company spends per square foot to exhibit. Add all the costs
associated with each show (including amortized exhibit costs where
appropriate). Then divide that total cost by your booth's square footage
to get an average cost per square foot. For example, let's say you
just spent $35,000 and your booth at the National Plastics Expo was
20 by 20 feet. Divide $35,000 by 400 square feet and your cost per
square foot to exhibit is $87.50. Calculate the cost per square foot
each of the shows you attend. Add those costs divide by the total
number of shows in your schedule for an average cost per square foot.
When it comes time to budget for a new show, you'll have a good starting
point. The caveat here is you'll want this number before your boss
starts asking you questions.
4. Cost per contact
You also can devise a show budget based on the amount of money you
are willing to spend to reach each visitor. To figure this you can
use industry averages or calculate your company's own "cost-per-contact"
formula. Here's what you do: According to Exhibit Surveys, the average
cost per visitor reached at a trade show is $172. This is the exhibit's
total direct cost - less travel and per diem expenses for staff -
divided by the number of attendees who speak with your booth personnel.
Calculate your potential audience, then multiply that by $172 for
a general budget figure. For example, let's say your potential audience
is 200 people. Multiplying 200 by $172 gives you an estimated overall
budget of $24,400 for the show. By tracking this cost per contact
at several of your own shows, you'll be able to establish an average
cost specific to your own company instead of using the national average.
5. Percent of marketing budget
Maybe you don't currently exhibit at any trade shows. How should you
figure an overall trade show budget? The Center for Exhibition Industry
Research reports that most companies spend between 15 and 20 percent
of their total marketing and sales budget on trade shows.
Thanks
to Exhibitor Magazine, December 2001 issue for these helpful tips.
|
