How the Exhibit Dollar is Spent
There is a continued demand for value in today’s exhibiting environment. Major purchases now pass through four to five key decision makers, not just one decision maker as in the past. This means the salesperson at the exhibit booth space has more people to educate. Exhibitors are demanding metrics and want to measure performance if they are spending valuable trade show dollars to exhibit.
Many companies are asking what are fixed and what are variable expenses for the exhibitor? According to the Center for Exhibition Industry Research (CEIR) study performed in 2009 (www.ceir.org), a portion of the overall dollars spent show approximately one-third spent on exhibitor space (30.7%) , which is nonnegotiable and has to be paid to be able to exhibit in the show. Trade show services (20.1%) are also nonnegotiable – you have to pay installation and dismantle charges to the show services (also known as I&D) at larger shows and most medium-size shows. This is especially true if you cannot walk in and walk out in thirty minutes with one portable case on wheels with the entire exhibit content for your booth space.
Travel and entertainment are variable expenses (15.1%) and are dependent on the number of people sent to the show, hospitality, and so on. Many companies can cut costs here. Exhibiting companies tend to zero in on exhibit design and try to find ways to stretch their dollar. Exhibit design (11.1%) is one of the lesser costs when planning for your overall show cost. There are opportunities with portable and modular products to help stretch the exhibitor’s investment in a display. The other factors to consider are Shipping (10.7%), Promotion (7.4%) and Other, also known as miscellaneous expenses (4.9%) when planning you’re your next trade show.
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