(AI-free post)
Did you know trade show budgeting is like government budgeting?
Yes, (unfortunately) I’m serious.
Allow me a little anecdote before I head for the matter.
The need to distinguish investments from expenses
A few years ago, I was attending a meeting at SEWA (Self-Employed Women’s Association – that’s in India).
The lecturer was talking about financial education and the difference between money that is spent as an investment, and money that is an expenditure.
A lot of common sense. Unfortunately not a common practice, otherwise she’ll be out a job.
At the end of her talk I couldn’t help myself telling her “ you should teach our governments”.
Yes, I’ve also worked in the public sector, and I’ve seen my share of taxpayers money go to waste.
As we’re all aware, at least in the “ west”, that our governments overspent in the last decades (inflation anyone?), pouring money into expenditures and not investments I couldn’t help saying to myself “like what I see everyday on trade shows”.
Trade show budgeting goes by the same principles.
Exhibitors too are subjects to the craze of overspending, mistaking what is an investment and what is an expenditure.
Goodies, food, water, for the french, champagne, booth design, brochures, marketing material, some party with the money like there is no tomorrow’s ROI meeting (most often than not there is no post show spending analysis, yeah that’s a shame, I know).
So how to know how to spend your money so you don’t end up losing your minister of trade show budget seat?
For those who follow US politics, how to run a DOGE on your budget?
Simple, classify expenses in two categories :
- expenses
- investments
Investment, keep, expenses, ask yourself “can we do without it without losing efficiency?”.
How to know what is an investment and what is an expense?
It depends on your objective, like with governments.
Is your objective internal politics? Like spending all your budget so you can claim it next year at the financial meeting?
Is your objective efficiency? Like leveraging the shows opportunity (mainly meeting new potential clients, and keeping your existing ones).
In which case, what should you invest in to make sure your team can seize these opportunities? Brochures? Or team’s proper training? An expensive booth design that will last 3 days? Or your employees skills that will last as long as you keep them? Goodies everyone gives away (see our post about swags)? Or prospects experience on your booth that will turn them into customers?
This is the difference between expenditure and investments.
Keep your show manager accountable
Now that you know, you can ask your event marketing manager to justify the costs of trade shows (or your government to justify the costs of taxes).
For the record, on average, and across industries, the booth space accounts for approximately 33% of your total cost.
That lives a LOT of room for dispatching the rest of the budget in a smart way. But as with politics, common sense is not always common practice, the same is unfortunately true for trade shows.
If you feel like trying your luck, what do you think is the less invested in trade show “account”, yet the most important for shows? And why?
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