Trade show community: know how center
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10 ways to cut instantly tradeshow costs
The current crisis is difficult for the whole tradeshow community: exhibitors, visitors, organizers, service companies. Quite some tradeshows reported already before the crisis a decrease in visitor numbers. For the US an analysis pointed out, that also squarefeet per exhibitor decreased before the crisis unfolded it`s strength. Our opinion is that 2009 will see strong additional efforts of cost cutting by exhibitors, and also partially by visitors. In spite of that many organizers will report for the past year 2008 record breaking results, and they hopefully will be wise enough to help their longterm exhibitors sustaining their tradeshow presences in 2009.
As a matter of principle all cost positions need to be looked at rigorously, and if possible they need to be adapted to the companies current position. The partners in the business should try to find collaborative ways to maintain participation at tradeshows as high as possible.
See our 10 ways to cut tradeshow costs instantly:
1. Resize your stand
Booth rent accounts typically for 20 % of the trade show costs and is thus one of the biggest cost factors (see Cost Structure Exhibitors). Do you really need all the space of your booth? Or is it also possible to rent a smaller booth without risk for your marketing targets at the show?
2. Negotiate the rent for your stand rigorously, but flexible
Negotiate flexible, tough, and perhaps even renegotiate your booth rent. Don`t try to negotiate sqm prices, because they are part of the offical price list and easy to compare between exhibitors. Be thoughtful, inventive, flexible: discuss about the total booth rent, about additional charges, the pilar in your booth, a three years contract, or even suggest additional communication activities to attract buyers from your end, which deserve financial support from the organizer. Be sure that tradeshow organizers are very interested to help this time, and keep you as a longterm exhibitor.
3. Reduce costs for stand building and decoration
If you need a new booth anyhow: tender the project, and evaluate at least three proposals. With the tender you limit costs at a level of 70 % of the previous booth. You will see that service providers will come up with stands, which do comply with your marketing targets. Alternatively you might use your booth just a year longer, and save costs for a new booth this year.
Booth decoration and equipment should anyhow be reconsidered, although saving potential is smaller. Also here you should go for at least three proposals. Don`t rely only on your longterm supplier. Be sure, that extra effort will be usually rewarded.
4. Change stand location
If your location is since long unchanged, you probably should stay away from the proposition to relocate. However, if you don`t have a regular location in the show, consider, if you change location and go for a well placed row stand instead of an end of row stand. If neighbours are attractive, this can be even more advantegous than the prior position had been.
5. Reduce manpower at the stand
Is it really necessary that all persons planned go the show? Especially tradeshows abroad or world pilot shows tend to be overstaffed. We have seen situations, where the Japanese visitors of a non-Italian company exhibiting in Milan were treated by the responsible country manager, instead of the director exports. And of course it hurts, if this country manager is this year not part of the team. However, the Japanese also might not come this year.
Also the team typically doesn`t have to be all days at the show in full strength, because for example the last day often is a day with lower frequency. Instead of checking Via Spiga, they might leave a day earlier.
6. Reduce travel costs
This area has been improved a lot in the last years in many companies. Still it is very effective, if you put the hotel, which your company is using for years, to test, and compare it`s offers with the current market.
If traveling is done with company cars, there is often room for improvement by strictly managed carshare. And a very unpopular area still is the management of flight costs, because of the prestige and because of the miles involved with the preferred airline, and preferred business class, instead of economy class or a budget carrier.
7. Limit business entertainment
If there is no budget limit for business entertainment, introduce personalized budget limits for invitations of buyers, guests, and even own staff. Your staff anyhow will go most probably for daily allowances in their travel expense reimbursement.
8. Leave heavy exhibits at home
Especially machines can be very expensive exhibits in tradeshows. Reduce transport, mounting and space costs, and leave them at home. Use your computer animated presentation and the presentation video instead. For a first information that will be very ok in most of the cases.
9. Reduce transport costs
Transportation costs of heavy or large exhibits can be reduced, if you sell the item in advance, deliver it right after the show, and the buyer takes part of the transport costs.
If you use your own truck or van, you might collaborate, and share costs of the van or truck with an exhibitor, who is located in the same region like you.
10. Attribute top priority status
In medium sized companies the organisation of the trade show participation is typically with the marketing director, if there is any. Or with the sales director, and he has delegated that to someone of the sales staff, who takes care since years for the hotel booking, the handling of the logistics, decoration of the booth etc. And this person has also his daily business. Thus, you will not be efficient in saving instantly costs. You need to make instant cost saving a top priority project, which is allocated to a senior member of the management. In small and mid sized companies it needs to be allocated to the owner or a member of the board.