How to Determine Your Trade Show Budget
It’s trade show season and that means that you need to get planning on how you’re going to exhibit at your next trade show.
Trade shows are great opportunities for businesses to boost brand awareness and find prospective customers. They can also help to train your sales team with important in-the-moment skills and give everyone something to look forward to and focus on.
There’s no doubt that when invested in correctly, trade shows can be an excellent way to boost your revenue. But how do you predetermine a budget and then stick to it? What’s the right amount of money to spend?
When it comes to buying or sponsoring an exhibition stand, it can sometimes be overwhelming. There are so many options available and the crazy price hikes are enough to make anyone worry.
Determining which stand option fits within your budget means you first need to set some goals and KPIs. How many people do you want to engage with? Is this a test? How many products do you need to sell in order to recoup that money and what is the likelihood of that happening? These are all questions you should ask yourself before committing to a stand.
When it comes to choosing your advertising, you need to again look at what this is going to cost you. If you already have a banner stand, then great, but if not, you need to do some research and find out how much things cost. Make a list of all the advertising tools you want and then compare that cost to your goals for the event and how that money will be made back.
Don’t get carried away with fancy pop up displays you can’t afford, instead assess how much you could realistically spend and then, worst case scenario, how long it would take you within normal working circumstances to make that money back.
Although most costs seem straight forward and all you have to pay for is the materials and the sponsorship, you’re forgetting one vital part: the people.
You’re going to have staff at the event that won’t be working in the office like they usually do, so you need to work out whether you can justify the expense (including the travel).
Assess what their average profit is to the business on a day to day basis and set each individual goals based on that. For example, if one of your sales representative normally earns you £1,000 revenue a day then they need to work on selling a minimum of £1,500 at the event to cover what they would have done in the office plus expenses and additional costs such as advertising.
Creating goals like this will enable your sales team to really push themselves and provide a good source of revenue despite being out of the office. Of course, this largely depends on the type of product or service you sell.