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Also read by Barry Siskind:
The exhibit budget
By Barry Siskind
You have a fiscal responsibility as an exhibit manager to allocate your resources properly and report results accurately to management. Without money nothing will happen, so the bottom line for your entire exhibit program depends on having a well-balanced budget.
The first step is to look at where your budgets come from. Often, they seem to materialize out of thin air. A number magically appears that is available for show and event marketing or the budget is a derivation of the previous year’s costs. You spent X dollars last time, so this year you ought to be able to spend X plus or minus 10 percent.
Today you are at ground zero. It is the beginning of a new era in exhibit management for your organization, a time to wipe the slate clean.
A results-oriented, fresh approach is needed. This begins with setting measurable, realistic objectives and asking yourself how much money do you need to accomplish these objectives?
Here is a three-step approach.
Step One: Create your wish list.
As you develop your budget based on what you want to achieve take into account all the budget area including:
- Exhibit Design and Production,
- Transportation
- Show services (e.g.: space rental, furnishings, electrical, audiovisual and cleaning.)
- Booth staff (e.g.: per diem allowance, travel and training.)
- Promotion (e.g.: advertising, marketing and sponsorships)
- Hospitality
Pretend you have no monetary restrictions. Simply assume that you can have everything you need to accomplish what you have set out to do.
Step 2: Compare costs
Compare your cost/reward numbers with what you have achieved at other shows or through other marketing efforts. How does this compare? At this point you need to add a touch or reality. Lets say you assumed in the first step that that you could spend $25,000 what is your reality now? Talk to senior management. Do some research and see what was spent in previous years.
Step 3: Trim to reality
Now that you have your wish list and you know your reality it’s time to trim the budget. Although you likely will not have the resources to do everything you want, developing a budget based on what you think you need to do the job properly is a good place to start. It forces you to focus on the entire program rather than on one aspect of the plan such as your booth or your promotion. From this you will be able to develop a realistic budget to include resources for all areas of your exhibit.
It’s a challenge trying to keep up with escalating costs, new technology, union and show rules, and ever-changing methodologies. The solution is not to create your budget in a vacuum but to get help from suppliers. Have an open dialogue with your suppliers and ask them for price quotes and ballpark estimates based on your objectives. The numbers at this time are “guesstimates,” but having an experienced industry person make educated guesses is likely to be a lot closer to reality than if you try to do it yourself. Asking for help does not necessarily obligate you in any way. Be up-front with your suppliers. Tell them what you are looking for to create a first draft of your budget, and let them know that there might still be a bidding process before a final vendor is selected.
By following these three steps and keeping your eye on results and you have taken a huge step towards exhibit success.
Barry Siskind is the president of International Training and Management, a full service exhibitor education company in Canada providing a wide range of products and services to help exhibitors improve their performance on and off the trade show floor. He is the is author of several books includding The Power of Exhibit Marketing. He is one of Canada’s most sought after consultants and speakers and North America’s foremost trade and consumer show expert. Visit his web site at www.siskindtraining.com.
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