3D Exhibits account executive, Michael Seymour, has been speaking about how to create and manage a trade show exhibit program budget at the Healthcare Convention and Exhibitors Association (HCEA) for more than a decade. For those who missed his session two weeks ago in Denver, Michael has graciously shared his five best insights:
1. Budgeting goes beyond numbers. "Companies don't just hand out dollars anymore—not without some expectation attached," says Michael. In order to perform up to these expectations, you have to know what they are. Michael recommends that you sit down with management before you create or agree to a budget to define exactly what it is they expect you to achieve.
2. The biggest mistake trade show and exhibit marketing managers make when creating their budgets is that they don't ask enough questions. Does management expect qualified leads, that you draw a certain number of people to demo a new product or that you just show up looking good? Do they expect a particular outcome or next step? Their answers to these questions will indicate just how comprehensive a program you need to plan—and how much money it will take to fund it.
3. Budgeting should be a negotiation. Once you have defined management's expectations you can talk to suppliers and pull together a plan and budget to achieve them. Inevitably, you'll be offered less than you need. But then you can go back in and educate management as to what can be implemented with the budget they have offered versus what they want to have implemented. Even if they don't budge, at least you will have gone on record as clearly explaining what they can expect to achieve with the budget they have provided.
4. When you design a new exhibit: Once you move forward, don't look back. Many exhibit design and build projects go over budget because of last minute changes. Accept that what you do will be excellent but not perfect and keep moving forward. Not making changes once the drawings are approved will keep your project on schedule and in budget.
5. When facing a budget cut—or inadequate budget to accomplish your goals—protect the aspects of your program that are necessary to achieve your objectives. Too many exhibit managers cut marketing, promotion and technology from their budgets—even though these are often the tactics that do the most to drive, engage and educate visitors. Instead, maintain your competitive edge by looking for something you normally spend on that isn't necessary to your success. Ask yourself:
- Will there be any negative consequences if we reduce booth space? Be sure to take into account that the smaller space with more marketing and engagement is likely to be more active.
- Are there any exhibit components that can be cut? Look for things you don't need or that didn't work well anyway.
- How much spend is this show actually worth? If attendance is down or attendees don't have that much buying power, there many be no amount of investment that will produce adequate ROI from that show.
If you have any questions about budgeting, let us know and we'll pass them on to Michael and get you an answer.
