How to Create a Trade Show Budget

Summer is the ideal season to attend a trade fair. However, it is easier said than done. The proper preparation for attending an expo requires a lot of planning and most importantly - budgeting. If you don’t want to break the bank, you need to sit down and carefully calculate the costs. Thankfully, our team is here to help and guide you through this process.

Set Your Trade Fair Goals

Why do you want to attend a particular trade show? You need to answer this question before you do anything else. And it is not simple. A company can have multiple goals like:

  • Attracting potential clients
  • Showcase a new product/service
  • Establishing partnerships
  • Presenting your business in front of a bigger audience
  • Checking the current industry trends
  • Obtaining valuable knowledge
  • And so on.

Think long and hard about the benefits of attending and how your business can benefit the most. Set up two or a maximum of three goals. Make sure they are measurable ( number of new leads), have long-term effects ( strong partnerships), and can potentially bring you profit (an increase in sales).

Don’t go all around the place with the planning because you might end up spending more than you can afford. Establishing brand awareness, increasing sales, and finding investors are great goals. However, to achieve them, you would need a team managing advertisement and brand reputation, one on-foot crew that will scan the trade fair for potential investors, and another that will talk to potential clients. So to achieve your goal, you will be deploying half of your company and spending thousands on training and preparing them. And we haven't even started with the stand costs.

Keep your goals realistic, and don’t overdo it.

Estimate Your Trade Fair Budget

Generally, the trade fair budget depends on whether you are going as an exhibitor or a professional visitor. The latter option is cheaper but doesn’t present as many opportunities as the former one.

So let’s check each possibility and see what the things you need to consider are. To make it easier for you when you are doing your estimates, we have prepared a detailed cost template. Use it to write down your expected and actual expenses and calculate whether or not you were able to stay within your budget.

Going to a Trade Fair as an Exhibitor

Joining a trade fair as an exhibitor is not cheap. There are countless things you need to think about.

  1. Costs for trade show preparation

The moment, you decide you want to showcase your company at a trade fair, the costs will start piling up. The preparation costs include two important factors - your team and the product/service you will be presenting.

Around 3% of your budget will go to training your crew and designing the advertisement materials. Note that we are just walking about designing, and not actual printing. At this stage, you need to meet up with your marketing team and decide how to best relay your message to the audience and potential clients.

The team trainings can also take a lot of time, especially, if your employees need to learn about the impressive features of your newest products. Remember, your representatives need o to be caple of answering every question your clients or potential partners may have for them. Sometimes this means you will have to employ external consultants or pay overtime to specialists from other departments to come and educate your expo team.

  1. Stand rent

The stand expenses will consume roughly 35% of your budget, with the rent taking the larger share. When choosing your spot on the expo floor, consider the following:

  • How close are you to the main traffic areas?
  • Who are your neighbours?
  • Where are your competitors positioned?

Then comes the type of stands you can rent. In our detailed article about the different booth kinds our experts explain your options and give their professional recommendations.

  1. Costs for stand construction

This one depends on the type of stand you will use. For example, if you rent a small booth and only need a compact podium, the costs will be relatively low. The more complicated the design and stand, the larger the expenses for construction. Note that sometimes you will have to pay extra for utilities like electricity, water, and heating, depending on the nature of your products/services and/or the rules posed by the trade show organizers. It is very hard to calculate how much of your budget should be dedicated to the actual construction, so just think of it as something you need to include when calculating the initial rent cost.

  1. Stand operation costs

You can use up to 10% of your budget for operational costs. This may include live security, cleaning fees, internet connectivity, and the extra things you may need. Don’t confuse them with the construction costs. In the first case, you pay for the initial setup fee, and in the second - what you have used during the trade fair.

  1. Travel costs and accommodation

Surprisingly, travel and accommodation aren't the largest trade fair expenses. The reason is simple - the majority of companies use the services of accommodation companies that can offer them the best hotel and lodging deals. Some businesses have contracts with certain filth providers making the ticket cost significantly lower. So dedicate around 12% of your overall budget to travel and accommodation and use all available services to keep the numbers low without compromising quality, of course.

  1. Personnel costs

This is the easiest amount to calculate as companies are required to have internal rules regarding the allowances given to each staff member. So just follow the company policy. However, if you need to include external specialists in your team or you are planning to invite your own visitors, things get a bit tricky. Overall the personnel cost should be more than 3% of your trade show budget.

  1. Insurance costs

You won’t believe how many business owners overlook this one, as it is optional. However, we urge you to be smart and make sure, both your team members and exhibits have the proper insurance. Things break, people fall, everything can happen, and it is better to be safe than sorry. You will need to dedicate up to 5% of your overall budget.

  1. Costs for the exhibits

If you think all you need to do is put your products in a box and take them with you on the plane, you are wrong. Here you have to think about:

  • Prototype development and production
  • Shipping of delicate items
  • Special exhibits - for example, flowers, antiques, animals

Depending on the nature of your business, these expenses can add up to 10% of the overall budget.

  1. Advertising costs

Now we land on the actual advertisement costs. Here, you need to create the material and ads you have designed in the initial preparation. Not only that, but you will also have to ship everything to the expo. Sometimes the advertisement cost can jump to 20 - 25 %, but on average, they say around 17% . And if you are wondering what could cost so much, think about all the brochures, promotional materials, banners, freebies, and little branded gifts that some companies prepare. You can easily go double your whole budget if you are not careful.

  1. Unexpected expenses

Realistically speaking, you can’t escape the unplanned expenses. There is always something that pops up last minute, and if you can't cover it, you will find yourself in a bit of a pickle. Dedicate 5% to the things you don’t know and try not to go overboard.

exhibitor budget

Going to a Trade Fair as a Professional Visitor

Although going as a visitor doesn't require such a large budget, it can also cost a pretty penny, so you must diligently plan everything. Consider the following:

  1. Costs for trade show preparation

Here, you need to invest as much time and effort in training your team. Having a well-prepared crew that knows your company goals and can effectively pursue them is crucial. After all now you don’t have a stand and can’t showcase your products/services. The team you send has to represent your business and be able to create meaningful partnerships.

Another thing you should include in the preparation costs is the possible advertisement materials your team will take with them. Obviously, you wouldn't need to design ad print large quantities of pamphlets and other promotional materials, but make sure everyone has enough business cards. You can also include a small business presentation or a couple of brochures showcasing your latest products and services. You never know who your representatives might meet at the trade show. You should dedicate around 15% of your budget to the preparation stage.

  1. Travel costs and accommodation

Since you don’t have to worry about a stand, your biggest expense becomes the travel and lodging of your team. To maximize the costs use an accommodation company, we can’t dress enough how budget-friendly they are. For transportation, we advise you to splurge a little and provide your team with extra money for taxi services or a rent-a-car. Around 50 to 55% of your trade fair budget should go here.

  1. Personnel costs

When you go to a trade show as a professional visitor, the workload doesn't subside. You need to participate in meetings and networking events. The chances of inviting a potential partner or investor to a business dinner are way bigger. After all, that is usually one of the biggest reasons you go to an expo as a visitor, not an exhibitor. So make sure your team has enough money to spend. In some cases, personnel costs can jump to up to 20%, but typically they are around 17%.

  1. Insurance costs

Make sure every member of your team is properly insured. Don’t skip this step. It is especially important if an external specialist is joining your visiting team. Roughly 8% of your budget should be dedicated to this type of expense.

  1. Unplanned expenses

Again, you need to be prepared for the unknown, so reserve 5% of your budget to unexpected expenses.

expo visitor budget

We hope we were able to help you a little with the planning of your next trade show visit. Remember, as long as you have clear business goals, you can benefit from an expo equally good, regardless if you are an exhibitor or a professional visitor.

How can we help you?

Do you need an accomodation for your next trade fair travel? Get up to 30% discounted room rates when booked 6-7 months in advance.

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Fair Point GmbH has no legal or commercial connection with exhibition organisers. Fair Point is an independent travel management company. Fair Point does not operate on behalf of or with the endorsement of exhibition organisers. It is this status which enables Fair Point to contribute independently and objectively to the exhibition industry. The names and logos of the trade fairs and congresses mentioned may be registered trademarks to which Fair Point has no claims.